Influencer marketing: Buying and Selling Audience Impressions

Influencer Marketing: Buying and Selling Audience ImpressionsMichael Ghen

Workshop Agenda

● What is influencer marketing? ○ Chafkin Case Study

● How does influencer marketing work?

● Buying and Selling Influence

Workshop Objectives

● Review basics about influencer marketing

● Teach you about pricing promotions

Max Chafkin, Bloomberg Newsweek:Confessions of an Instagram Influencer

● “These “influencers,” as they’re known, are media properties unto themselves, turning good looks and taste into an income stream”

● Does it work for brands?○ “marketers were essentially throwing

money away on influencers”● Is it so easy anyone can do it?

○ VaynerMedia: No○ Socialyte: Yes

Src: https://www.bloomberg.com/news/features/2016-11-30/confessions-of-an-instagram-influencer

Max Chafkin, Bloomberg Newsweek:Give me some cash, I’ll post an insta

“With [Socialyte] advising me, I would go undercover for a month, attempting to turn my schlubby @mchafkin profile into that of a full-fledged influencer. I would do everything possible within legal bounds to amass as many followers as I could.

My niche would be men’s fashion, a fast-growing category in which I clearly had no experience.

The ultimate goal: to persuade someone, somewhere, to pay me cash money for my influence.”

Src: https://www.bloomberg.com/news/features/2016-11-30/confessions-of-an-instagram-influencer

Max Chafkin, Bloomberg Newsweek:You don’t have a cute dog, do you?

“You sell part of your soul. Because no matter what beautiful moment you enjoy in your life, you’re going to want to take a photo and share it. Distinguishing between when is it my life and when am I creating content is a really big burden.”

“I’d assumed two things about the beautiful people of Instagram. First, I figured they used the service the way Instagram suggests... Second, I assumed they took the photos themselves. Neither was true, as I learned when, on an unseasonably warm morning in early October, I brought 18 outfits to the Socialyte office.”

Src: https://www.bloomberg.com/news/features/2016-11-30/confessions-of-an-instagram-influencer

Max Chafkin, Bloomberg Newsweek:There aren’t shortcuts but there are apps

“Part of what makes Instagram valuable to advertisers is that there aren’t many shortcuts to accruing an audience. Unlike Twitter, for instance, where a clever quip can be quickly retweeted, bringing a deluge of followers, Instagram is relatively resistant to viral growth.”

“To avoid looking totally desperate, I hid my hashtags below a series of line breaks. To avoid any unnecessary creativity, I used an app, Focalmark, which allowed me to input a couple of variables about each shot… and would then spit out a list of hashtags.”

Src: https://www.bloomberg.com/news/features/2016-11-30/confessions-of-an-instagram-influencer

Max Chafkin, Bloomberg Newsweek:A steady stream of likes and new followers

“ I would need at least 5,000 followers to have any hope of making money”

“That night, I signed up for a service recommended to me by Socialyte called Instagress. It’s one of several bots that, for a fee, will take the hard work out of attracting followers on Instagram. For $10 every 30 days, Instagress would zip around the service on my behalf, liking and commenting on any post that contained hashtags I specified.”

“By the end of the month, I liked 28,503 posts and commented 7,171 times”

Src: https://www.bloomberg.com/news/features/2016-11-30/confessions-of-an-instagram-influencer

Max Chafkin, Bloomberg Newsweek:Thanks for the t-shirt, bro #liveauthentic

It no longer seemed weird that all day and all night my virtual double was doling out likes and saying things like “High five for that!” about pictures I had not seen and would never see.

The breakthrough came as my follower count pushed above 800. I got a message from Andrew Hurvitz, a photographer in Los Angeles and the founder of Marco Bedford, a clothing line. “You want to collaborate?” he wrote. I was ecstatic.

As an official spokesman for Marco Bedford (#ad #sp #liveauthentic), I feel compelled to say that I stand by my characterization that Hurvitz’s shirt, which retails for $59, is “beautiful.”

Src: https://www.bloomberg.com/news/features/2016-11-30/confessions-of-an-instagram-influencer

Chafkin Case Study

Influencer Marketing Themes

Anyone can do it

You are buying and selling influence

It is manufactured

There are no shortcuts to success

You need a large, engaged audience

Does Influencer Marketing Work?

● Cut through the noise and stand out among the crowd

● Brand advocates (aka influencers)

● Buyers trust a voice of authority● Orient your marketing activity

around these individuals, brands can attract and retain customers on a long-term basis

Info. Src.: http://www.forbes.com/sites/danielnewman/2015/06/23/love-it-or-hate-it-influencer-marketing-worksImg. Src.: http://www.talentculture.com/5-lessons-on-influencer-marketing-and-brand-transparency/ /

What are the experts saying?

● Influencer marketing is the fastest growing and most cost-effective channel. (Tomoson)

● Ninety-two percent of consumers turn to people they know for referrals above any other source. (Tapfluence and Influitive)

● Word of mouth generates 2 times the sales of paid advertising. (McKinsey)● Customers acquired through word-of-mouth have a 37 percent higher

retention rate. (Deloitte)● Businesses make $6.50 for every dollar invested in influencer marketing.

(Tomoson)Sources: http://www.forbes.com/sites/danielnewman/2015/06/23/love-it-or-hate-it-influencer-marketing-works/

Macro vs. Micro Influencers

● Macro Influencer○ Nikon wanted to sell more digital

cameras, so they hired Ashton Kutcher to do an advertising campaign

● Micro Influencer○ These people have substantial

followings and are often very well known for something specific like marketing, leadership, or even parenting

○ Not celebrities

Info. Src.: http://millennialceo.com/micro-influencer/ Img. Src.: Instagram @eatyourhe.art.out

Know Your Numbers, Measure ROI

● Traditional Marketing Metrics○ Cost Per Click (CPC)○ Cost Per Thousand Impressions (CPM)

● Influencer Marketing Campaign Goals○ Sell product○ Generate leads○ Get followers/likes

● How can you measure return on investment?

● How can you price a campaign?

Buying and Selling Influence

Buying

● Estimate price per post based on engagement statistics (likes, comments) not followers

○ Use CPM or CPC based pricing○ Know your conversion rates

● Don’t overpay, there’s always another influencer

● Focus on building long-term relationships○ Evangelist Approach

Selling

● You can charge what you want○ Not necessarily going to get it

● Focus on collaboration ● Build an authentic audience

○ Engagement is critical to influence● Not all companies will pay cash

○ Some will give you free/discounted product

Chicago Technology for Marketing and Sales

Thanks for attending!

Questions