At What Cost?

Influencers add visibility that make products or services viable via their credibility with the public.

Influencers have large followings on social media that organizations draw on to extend reach.

There isn’t a set cost

structure or contractual fee

parameters that can be

used to gauge the exact

worth of each influencer.

Reports have prices ranging

from $50 for a tweet to $12

million annually for top

ranked influencers that have

mass followings, according

to INC.

Recent charges have

been filed against

several marketers and

celebrity influencers on

Instagram for not

disclosing that some

endorsements are paid

for by advertisers,

according to THE DRUM.

”

Influencers have followers that follow

their social medial channel that

provides either entertainment,

information or some combination of

both.

YouTube influencer, Michelle Phan,

earns her estimated $3 million

annually by doling out beauty tips to

her multi-generational followers.

There are influencers across the

spectrum of arts, issues, and

concerns that exercise influence over

those that share a like-minded view .

There is a perceived “value added”

proposition to using influencers in

marketing campaigns. Those with

proven appeal and a mass following

can garner the views desired, but not

always the conversions needed for

success.

On the following slides we’ll look at

some data from nielsen and

mckinsey that will give better insight

into the value of “influencer

marketing”.

Global Trust In Advertising: More than eight-in-ten respondents (83%) say they completely or somewhat trust the recommendations of friends and family.

Two-thirds (66%) say they trust consumer opinions posted online—the third most trusted format.

Branded websites are the second most trusted format by 70% of global respondents. 56% trust email they signed up for.

Word of mouth is the primary factor

behind 20 to 50 percent of purchasing

decisions. Its influence is greatest when

consumers are buying a product for the

first time or when products are relatively

expensive….

Today, it also operates on a one-to-

many basis: product reviews are posted

online and opinions disseminated

throughout social networks.

As consumers have become

overloaded they have become

increasingly skeptical about traditional

company-driven advertising and

increasingly prefer to make purchasing

decisions largely independent of what

companies tell them about products.