NSTAGRAM INFLUENCER SELECTION ANALYSIS ON THE SME’S BRAND CAMPAIGN IN INDONESIA USING CORRELATION ANALYSIS (CASE STUDY : IAM.ID)

• Main Author: Isana Febriana, Icha
• Format: Theses
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/53309
• Institution: Institut Teknologi Bandung

The number of Small Medium Enterprises (SMEs) in Indonesia reached 64,194,057 units in 2018 but it turns out that SMEs face various problems, such as business strategy, marketing, and branding. Only 12% of SMEs currently use digital as one of their platforms but most of these businesses are still in stagnant condition. An influencer is someone who has large followers and has a better chance to promote a product through social media content. However, it is difficult to find a suitable influencer for SMEs. The market potential in this field is quite high, considering that Indonesia has the largest number of social media users in the world. Globally 5-10 billion USD is spent through influencer marketing in 2020, 65% of companies plan to use more in influencer marketing, and 92% of customers trust personal recommendations more than conventional advertising. An analysis of the Instagram influencer’s selection was conducted through a case study from start-up IAM.ID. The hypothesis is based on the engagement-rate (ER) and influencer’s category. What is considered as interaction most often refers to likes, comments, shares, and saves feature. The customer feedback questionnaire is one of the research methods to measure how the SME’s preference in choosing an influencer for the campaign. Furthermore, the content analysis and correlation analysis are performed using the trendline feature by Microsoft Excel in determining the coefficient of determination (R Square). The content analysis aims to analyse the correlation between the effect of the suitability of captions on the ER campaign. The correlation analysis was carried out to determine the relationship between the number of followers and ER influencers to the ER campaign. All of the above show a strong relationship with R square above 0.7. The results of this research will be very valuable in developing Artificial Intelligence (AI) technology to the company. The Design Thinking method used based on how the results of the analysis can solve problems systematically, creatively, and innovatively in a humancentered manner. Several points are suggested, such as AI modelling for content analysis by Natural Language Processing (NLP), update the IAM.ID calculator, and build an automatic matchmaking system on the IAM.ID website. The ER influencer, number of followers, and influencer category are affect the success of the campaign. The increase of influencer’s ER will be correlated with the increase of ER campaign linearly, where a higher number of followers will tend to decrease the ER campaign exponentially. If a brand matches the influencer category, then the ER campaign will also increase linearly.