Have you heard of a dish called “Melted Cheese”?
It is originated from Switzerland, basically it is just cheese pouring down to an ordinary dish. (As a guy from Asia, I apologize that I don’t have deep understanding of cheese culture haha)
I wouldn’t say it is so special, but very cheesy indeed. People go there just to find out what that is and fulfill their curiosity.
There is a store called Raclette in New York City that sells dishes like this. The dish had been on their menu for several years. The feedback from customer was just so so.
Yet at the April 14, 2016, An account called INSIDER released a short video on Facebook. The popularity of this “Melted Cheese” sky roared like a rocket…
(Note that it has 721K shares, 93M views.)
The store was fully booked the day after the video was released.
The owner said that they used to have four employees, but due to the circumstance, they had to hire more. The restaurant managed to boost their sales from this single dish. I don’t have the exact numbers, but that must be good…
This is the value of social media influencer. Now the follower has reached more than 9 million.
If you are the business owner, would you pay for a social media influencer for marketing purpose?
Today I will unveil the secrets of the business model of the social media influencers in the U.S – How much can an influencer earn with a post?
The influencers in the US are mainly active in the six social media platform. According to the price each platform offers, the ranking is as follows:
Youtube, Facebook, Instagram, Snapchat, Vine and Twitter.
So how much is it for a post?
Captiv8 released a chart showing offers in different tiers. The company is an influencer marketing analytics platform and marketplace that uses artificial intelligence to connect brands with relevant influencers.
We can see that it is most expensive for one to find an influencer to post a video ad on Youtube. If he/she has more than 7 million follower, it is going to cost $300K.
However, making a Youtube video is HARD! Not so many influencers can do it. Well, there are other choices available!
If you have 7 million followers on Instagram, then a post with a photograph and a paragraph of words can work as well. That is worth about $150K .
For example, in 2015,Kim Kardashian who has 109 Million followers is a top icon worldwide.
Rumors says that this post is worth millions of dollars. As you can see there are 464K likes in this post.
|“OMG. Have you heard about this? As guys know my #morningsickness has been pretty bad. I tried changing things about my lifestyle…”|
I would say it is just pure commercial ads in a written format…
Yet later the U.S. FDA issued a warning letter to pharmaceutical company after Kim Kardashian posted that promotional selfie with one of its drugs. So she had to take it down…
Why finding social influencer for ads?
OK, how do you feel after reading offers from the chart? Is it too expensive to find influencers? Do they just have too much cash to burn? Why are they spending that amount of money for?
It seems like you are just a newbie. Let me tell you why it is worthwhile to find an influencer for marketing. The reason is that promotion like this are more effective and more long-lasting.
Comparing to traditional marketing, influencer marketing has its distinguish advantages. They make every effort and more likely release a post that fits the interests of their followers. In addition, it is more long-lasting because rather than traditional ads being taken down once you stop paying, a post or a video could be there forever unless things like Kardashian’s case take place.
For example, “Sushi donut” gained its unusual popularity primarily from Facebook. I remember first seeing it last summer, and now I can still see it occasionally in my Facebook page. Rumors says that it still takes about hours to wait in line. While thinking about its craziness, we can also see that the marketing expense spending on an influencer’s post really worth its value.
So how to pick influeners?
It seems like you are interested and you are eager to spend money on influential marketing. Yet there are too many KOLs, do you know who you should find?
Let’s say you have a budget in hand, you can either pick
Plan A- a KOL with 8 million followers
Plan B -10 KOLs with 800K followers
If both options have the same price, the numbers of followers in total in both case are same as well, how do you make the right choice?
I will first digress a little bit and introduce the hierarchy of Social Media Influencer by the numbers.
Every tier has a different nickname.
Tier-1: Icon~7.4M followers
Tier-2: Trailblazer ~2.8M followers
Tier-3: Influencer ~853K followers
Tier-4: Micro-Influencer ~221K followers
Tier-5: Super micro influencer ~50K followers
In order to evaluate the performance of a post, there is an important term called CPM, which stands for “cost per thousand impressions,” meaning that how much you need to pay for 1000 people to see this post. In a way, CPM measures cost effectiveness of a post.
Let’s sharpen our pencil and do some math here.
Suppose you give me 100 bucks, and I make a post, resulting in 1000 views. Then the CPM =$100/1=$100
Suppose you give John 100 bucks and his post gets 5000 views. Then the CPM = $100/5 = $20, meaning that you can just use $20 for 1000 views.
You want the CPM as low as possible, your money worth the most with lowest CPM.
Let’s take a look here in this chart which shows CPM for influencers in each tier.
We can see that 3rd tier is the lowest, meaning that it is most cost-effective. But why?
We have to be clear that in the aspect of value-adding, the more follower the better is not the case here. When you have too many followers, the interests of followers are very diversified. Consequently, it is more difficult to make a post that favors everyone, resulting in limiting the views and the number of shares/repost.
Yet an influencer with too few followers also has disadvantages. Although followers may have similar taste or interests, low number of followers also limits the number of views and shares. So influencers in tier 3 have a good balance of the quality and the quantity of the followers so that its CPM is the lowest.
So you want an influencer to make a post for your business but have no idea how to start? Don’t worry, you don’t have to start from scratch. This market is so mature that you can easily find an agency and they will do all the job.
This just makes life so much easier :)