My Truly Social Tip this week is about one of those investments: Hub content on YouTube. Take a watch and see what this is and why it's so powerful.
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There are, literally, hundreds of marketing tactics and platforms now and most companies don't have huge marketing budgets that allow them to invest in everything. YouTube allows you to compete on equal footing with even your biggest competitor.
I've read more than a few articles that sensationalize the large dollar amounts that Digital Influencers are making. I've also overheard many people having conversations about this that indicate they think this is frivolous. I want to tell you that when I hear anyone snicker at what Digital Influencers are making, I automatically think:
- That person is out of touch with the reality of marketing today - these kids in their bedrooms with their iPhones making videos are who people listen to (especially Millennials, who everyone seems to want to reach).
- That person is going to regret their dismissal of Digital Influencers when they are priced higher than the current market rates for other forms of advertising.
Just because you don't understand why this is happening doesn't mean it isn't happening. And it's only the beginning.
Doing The Basic Math
The simplest way to describe the value is by presenting the basic math. When you work with a Digital Influencer, you are getting more than someone sitting in their bedroom for a few hours recording and editing a video. You are getting video production/editing/direction, talent, natural amplification AND celebrity/influence.
If I was to conservatively price out a basic YouTube video looking for 100,000 views (equivalent views to a mid-range YouTube influencer with around 200,000 subscribers), it would look like this:
Scripting/production/shooting/editing - $5,000 (for really basic stuff) Hiring basic talent (with charisma) - Average $250/hr - ACTRA says you have to pay for a full 8-hour day - $2,000 Boosting - Assuming the CPV (Cost per View) is $0.05 = $5,000 for 100,000 views Influence/Celebrity - hard to price this, but Kim Kardashian makes $100,000/hr for appearances and Snooki makes $25,000. Neither of them show up on the most influential list. Let’s be conservative, though, and say $10,000 for the appearance.
That nets out to a very conservative estimate of value for a YouTuber with 200,000 subscribers (and ~100k views/video on average) to $22,000 per video.
And when I say that I was being conservative about this estimate, think about the costs of a 30-second TV spot - which is reaching fewer and fewer people (and, in my opinion will continue to decline in relevance...if there ever was much anyway). According to the American Association of Advertising Agencies, the average cost of a 30-second spot on television in 2011 was $354,000. That's a pretty penny.
So, when Jerome Jarre, who has 7.2 million followers (and rapidly growing) on Vine is reported to make $35,000/vine, I say those brands get a helluva deal! Don't tell Jerome, but he should be making $500,000+ if he was charging for just the boosting capability (his vines see >10million unique views)!
I guess the $1,000,000 offer he turned down was a good move after all:
The Bottom Line
When you hire a Digital Influencer, you aren't paying for the few hours they take to record the video or the quality of the camera or editing work. You are paying for their SOCIAL CAPITAL, which in their world is VERY tangible.
You can see their subscriber numbers and the way their audience is deeply engaged in everything they do (from what they are wearing to who they listen to and beyond). They've spent years building deep trust with their audience by investing in them and being open and transparent. According to a study by Variety, Digital Influencers rate higher than Hollywood celebrities in influencing purchases.
To dismiss them for being too young or their work being too fun/easy or their content being too casual is to completely miss the reality of the situation: your brand should have invested in digital content years ago. Just one 30-second spot would fund anywhere from 1-10 YouTube stations for a full year (depending on your production investment + complexity). That sort of investment would mean a smaller long-term investment, bringing that efficiency that many companies look for today.
The building your own audience ship hasn't sailed quite yet, though. Condé Nast, under the amazing leadership of Dawn Ostroff, is investing in a better digital content strategy on YouTube and it's really paying off. Their audience is growing rapidly as are their organic views. Much of their content is modelled on the types of videos the audience enjoys: entertaining, funny and authentic.
I still believe that working with Digital Influencers is one of the strongest short term marketing tactics you can deploy today and going forward, but it's also important you learn from them and invest in becoming an influencer yourself.
Let me know how you are investing in an audience below.
[title image credit: Thinkstock]
It usually starts something like this:
Hey! Everyone I know is on Instagram! We should start an Instagram for the company!
The suggestion in itself isn't wrong per se, it's just not made with much of an understanding of how these social platforms work. It takes less than 5 minutes to set up an Instagram account (if you have an iPhone or an Android). That's the simple part. But then the real work begins.
People who rarely use social networks love platforms…even when they, themselves, admit to not having enough time to use them. That's pretty much what they see: platforms and the numbers. "Why aren't we on Pinterest/Foursquare/Tumblr/Google+/You Tube/Instagram/etc?" they'll ask. They'll tell you about all sorts of other companies who have set up multiple accounts on multiple platforms and how they read about it on Mashable. They'll hint at being concerned about your expertise or ability to execute because you haven't created accounts everywhere. They may even say, "It takes 5 minutes to set it up!"
But what people who don't use social networks much fail to understand is that picking a platform means that you need to create ongoing content for that platform. Content requires a strategy and ongoing production of said content. And monitoring, measuring and tweaking of that content (and strategy). And community management of the inbound reactions to that content, especially if, heaven willing, you do a great job of the content and your account on said platform gets very popular. And all of these things take a lot of time and deep understanding of your audience, your competitors, your product, the overall trends, current events, knowledge of the industry (and surrounding industries), analytics, what are best/worst practices, gathering of ideas, photoshop skills, camera skills, editing skills, a good eye for a shot skills, writing skills, translation skills, people skills and technical skills.
Creating content for a brand (company, organization or individual) is like running a news room...but even more complicated because it needs to be interactive. You need to plan out a certain amount of content (ideally daily for weeks in advance) for each platform like you would for each segment, then you also need to be on top of current events and issues to be able to switch it out on the fly to seize opportunities in the moment. You need to keep people entertained and continue to grow with your audience. You need to be relevant and entertaining, but create enough deep engagement that you are building a solid loyalty base.
In addition to this, you need to achieve your own goals through the content. If you are selling something, it's number of sales leads. If you need sign ups to your app, you need to drive people to your site (off of whichever social network) to sign up. If you are raising money for a cause, you need to compel your followers to go and give money. There are several things you need to balance: building an audience and driving people to your goal (often off-site) and the two are mutually dependent. If your content isn't entertaining, you'll lose your audience, and have nobody to build loyalty and long term sales with, but if you only entertain and never convert them to buyers, you are wasting your time. And the balance is tricky.
And I haven't even started to talk about how each platform needs to be approached from a different angle with unique content strategies. Cross-posting content between platforms rarely works. There are different rules (Twitter, for instance, is limited to 140 characters, while blog articles can go more in depth to make a point). There are different tones (Tumblr is fun and casual with a hipster flair for design, while Google+ takes a more information sharing and analytical tone). There are different audiences (Pinterest is dominated by women, while Reddit is male-heavy). There are different functions (Foursquare is great if you have physical locations to promote, while Quora is a fantastic way to show your expertise in an area). Different platforms work better with different media (YouTube is all videos, while Instagram is all images). And some platforms are richer than others (Sure Twitter allows for posting images and video, but the real time rapidity means you should focus on the text, while Facebook posts thrive with images and other 'sharables' and text falls flat).
All of this is to say: content doesn't just appear magically out of thin air with a wave of a magic social fairy wand. And there have been many of my colleagues beating this drumfor years, but their message is more and more prescient over time as every brand is expected to be on practically every platform, but have no idea what that means.
Why they hire interns or outsource to people to create this crucial content that is SUCH a crucial part of their marketing and customer relationships is beyond me. But part of it is education and part of it is the plethora of 'gurus/ninjas/polkaroos' who know the buzzwords and how to copycat content, but not how to create relationships. People, you get what you pay for. But why should I be surprised? Companies spent decades outsourcing their customer service - the point of the best opportunity to create a lifelong loyal customer and evangelist - and have focused on new customer acquisition over the more lucrative current customer retention and growth opportunities for as long as I've been on this earth.
What I mean to say is: CONTENT IS IMPORTANT. And there is a specific skill and finesse to doing content well that may seem like magic to most people. It requires left/right brained people with sharp critical thinking skills. The type of people who have big libraries of books (that they actually read) and are constantly checking their mobile phones for the latest news and world events. This person consumes more content in a day than most people consume in a year. S/he has so much knowledge in her/his head from so many different industries and disciplines that s/he will connect dots you would NEVER think to connect and sometimes the connection is only clear in her/his head (but it is usually innovative). This person studies people and networks and gets giddy when the data uncovers counter-intuitive evidence. Her/his instincts are sharp even though s/he can't fully explain where her/his idea comes from. This is not a full or completely accurate description of this person. But it's a start. And that person should really be internal to your organization.
The thing is, it IS magic, but in the Arthur C. Clarke way ("Any sufficiently advanced technology is indistinguishable from magic."). It rarely takes years of school to hone this skill. It's not brain surgery or rocket science. But it does take years of life* (and some severe ADHD). And most of all, it takes a huge amount of respect...for the customers, the importance of content, the brand and the media.
There is a magic content wand, but most of the world are Muggles, and those of you with the magic should understand that it's not so simple to describe magic to a Muggle. (so if you circulate this post, remove this last bit)
* I, by no means mean years as in one has to be older to be good at this. I know lots of 20-somethings that have 'the knack'.