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]
Just as a short follow up to my last post, I want to show you something I uncovered. Estée Lauder has done something very good: they hired popular fashion/beauty/foodie/lifestyle blogger Emily Schuman of Cupcakes and Cashmere to do some videos for them. This is interesting to me because ,although I love Emily's stuff and she's obviously VERY good at what she does and promoting herself, I don't know her as a video blogger at all. In fact, her tutorials and most of her content is photographic. But Estée Lauder took the risk and hired her to do videos anyway. So, how did that go for them?
Take a look at their top most viewed videos. The top 3 are those one-way type ads made for television that shouldn't really be on YouTube, but are....and they are in those top spots because they are paid for:
Let's say that on average, it's about $0.10/view, so to get these views, Estée Lauder would have spent around $60,000. However, when it comes to the Cupcakes and Cashmere posts, which are in the top 20 most viewed on their channel (though have less than half of the views of the top 3), there was no ad spend. Zero:
Now, I'm not sure what they've paid Emily to be a brand spokesmodel, but her ability to leverage her own community and hard work to create views for the brand is very effective and, not only are there organic views, but the comments, likes and general engagement for Emily's videos are way better. This is a case in which Estée Lauder should take these learnings and shift more of their money and attention into producing more content with Emily (and others like her). Of course Emily needs to remain brand neutral on some level to keep her audience, but this provides a good case study for engaging with bloggers who have built a great community instead of merely paying for views.
Or better yet...build a community. Refer to my last post on that one.
A piece of feedback for Estée Lauder? That highly branded channel landing page is confusing, unnecessary and loads slowly. If you are thinking of a redesign, think about user experience and needs over artsy-ness.
Viral videos are still largely a mystery. Why a South Korean music video has been viewed over half a BILLION times in less than 3 months is beyond me. It's a catchy tune, yes. And the parodies have been oodles of fun. But over 500M times? I doubt anyone would have predicted that. Justin Bieber still reigns with his Baby video, which should reach 1 Billion views by the end of this year, but PSY is catching up in record time.
But while viral videos are often a one-hit wonder mystery (Chuck Testa, Double Rainbow Guy, Charlie Bit My Finger, etc) and are largely due to luck (funny/interesting/surprising content + right place + right time + slow news day), there is another realm of YouTube that has more predictable results: content channels.
Content channels are the YouTube producers that provide regular programming with deep, long-term engagement. They have loads of subscribers who tune into their videos on a daily or weekly basis, watching, commenting, liking and sharing videos on a consistent basis. And though some of these channels were jump-started by a single viral video, many of them were built over time by engaging their audience and following some well-publicized best practices on YouTube (highly recommended download).
Though these best practices, tips and tricks are readily available, I've been surprised to find that many brands that are dying to engage in the power of YouTube ignore or avoid this advice altogether, opting instead for big advertising spends and vanity plays. When I say vanity plays, I'm referring to the tendency for brands to invest more in branding than they do in long term engagement. A fully customized YouTube channel page, for instance, has a price: a major advertising investment (in the US, having a vanity page could cost you $200,000 ad spend + the cost of customizing the page). That's a whole lot of money in lieu of engagement.
So, what are some of these best practices? They are pretty simple:
- Create great content that's unique, compelling and engaging (informative or entertaining)
- Use the first 10 seconds of your video to grab attention: if you are posting a how-to video, show the results before you go into the spiel
- Post on a consistent basis: one video won't do it, and uploading a whole whack of videos at once won't do it either.
- Post fresh content on a regular basis: record, post, interact, get feedback, use that feedback to improve your next video. Repeat! The most powerful part of YouTube is the interaction. The best video bloggers listen to their audience and incorporate questions and requests regularly.
- Use great thumbnails (show the end result or the best snap of the video), tag well, title descriptively and use annotations and information to your advantage
For this analysis I'm focusing on beauty because there are MULTIPLE categories for multiple viewers on YouTube and beauty is not only one of my favorites, but the area in which I have spent most of my analysis. Music, comedy, travel and gaming are areas in which brands and independents are mixing quite well at the moment. Fashion and beauty are still laggards. And, for the purpose of analysis, I've chosen one ostensibly independent channel and two of the top brand channels (meaning that they are well-recognized beauty brands). I also rate by subscribers and not views. You can buy views, but subscribers come organically and are a good sign of engagement.
One of my favorite channels on YouTube is LuxyHair:
Though I'm pretty sure their bedrooms aren't really that spotless, they do a lovely production job of mixing casual and professional. Mimi and Leyla are sweet and generous and friendly. The lighting is perfect. The setting (bedroom) is fun and casual, but lovely. The styles they do are timely (they watch the trends and the comments). And because of this, they have amazing engagement: nearly 600,000 subscribers and nearly 100 MILLION views on their videos. They also get oodles of comments and interactions (video replies, likes and messages).
And guess what? LuxyHair is a brand!
They've been posting videos and slowly improving since a few months before they launched their hair extensions line. They did it right. They started building a community and audience and providing value before they started posting any product at all. And even today, they rarely, if ever, talk directly about their hair extensions. Instead, they show us in the audience how to wear them and look amazing in various styles. Subtly, there is always a link in the comments to the extensions they've used in the style...you know...just in case I need to know.
I actually didn't know that LuxyHair was a brand until I'd been subscribed for a few months. I found one of their hair tutorials as a related video and loved it so much, I subscribed to the channel. I kept watching the videos through my YouTube dashboard and one day Mimi mentioned something off hand about the extensions, so I clicked through and checked them out. I was impressed that they spent so much time building community and offering something for the viewers that I'm likely to order some extensions from them in the near future.
Another brand that does a pretty decent job is Mac Cosmetics:
Normally, I wouldn't think much of their YouTube content as it's sort of all over the map and much of it misses the mark on what I need to get from a beauty channel (personally, I could care less about backstage at FashionWeek), but their really short and snappy tips and tricks are pretty awesome. Like this tip for winged out eye makeup or this one on how to clean up the red pout. Their thumbnails, awful bad titles that aren't descriptive and their general inability to focus drive me a bit nuts, but the content is there. It just needs to be cleaned up.
Plus, I can totally forgive them because they run a full-on integrated, love for the makeup artist community show through multiple platforms, including on their own site (but really? No sharable URLs? C'mon!). They obviously care and it shows. They just need some discipline. But whatever, they are artists. ;)
Mac Cosmetics looks to be the most subscribed to major beauty brand on YouTube, but one of my favorite social brands is catching up fast...Sephora:
Of course Sephora has the advantage that many beauty bloggers have: they have multiple lines of cosmetics to work with. However, they started late in the game and through using many of the YouTube best practices (regular, timely uploads; good thumbnails; great use of playlists; effective titling and tagging; etc), they are taking the beauty world on YouTube by storm. Just a snapshot comparison of Sephora, Mac Cosmetics and Luxy Hair shows that they are growing in leaps and bounds:
They are nowhere near LuxyHair, but are poised to overtake Mac in a few months as the reigning Queen of beauty brand YouTube. I should add, however, that some of the early growth was due to paid advertising, but they've used it pretty sparingly along the way and the majority of their channel growth is organic and due to their use of best practices, attention to details and community interaction. Like Mac, they also have a fully integrated social strategy and use Facebook, their own BeautyTalk community, Twitter, Pinterest, Tumblr, Instagram and mobile platforms. They interact regularly and produce helpful and fun content on all of their platforms. They also have a robust VIB (Very Important Beauty) program that rewards loyalty, a killer email marketing program, make their stores super DIY and have a really great website and ecommerce platform that makes it easy to search for products by brand, skin issue, categories, trends, specials and expert advice. It's hard to compete with their focus on customer experience...but you should try.
I originally had analyzed a few misses, but I've decided to make this a more general post because, well, it encompasses pretty much every beauty brand on YouTube. Sorry. By now, if you are reading this and you work for a beauty brand, you probably know who you are. Instead, let me point out what you are generally doing wrong.
You are making one or many or all of the following MISTAKES:
1. In a desperate attempt to 'go viral', you are paying for advertising to boost content that is best suited for a one-way medium (ie. an advertisement that has no story, emotion or interactiveness).
2. You are getting a bunch of tutorial videos professionally shot all at once so you can have plenty of content kicking around to upload over time.
3. You are spending a whole bunch of time and money getting your channel landing page branded beautifully (for those rare people that actually land on a channel homepage - less than 1% btw).
4. You are running short-term campaigns on YouTube with no long term planning or thought of how much a community would benefit your brand over the long run
5. You aren't paying any attention to how people really discover your videos...through search, blogs, social networks and other sources where your thumbnails, descriptions and titles really really matter for discoverability.
All-in-all, you are sending the signal that you would rather spend a big sum of money than spend the time building real relationships and community around your brand. Spending money is fine, but it should support, not be in lieu of community building. I've watched many too many brands with short-term visions and I know that part of it is the way that advertising budgets are set out. But if you want to really benefit from social, you need to BE social. You need to look at it through a long-term lens and budget accordingly. Online doesn't work like print worked. It doesn't work like television or outdoor or radio or any of the previous one-way media worked for brands. Social is two-way....no multi-way conversation between you and your customers, your customers and your customers and your customers and your future customers. Hell it's even a conversation between you and your competitors because even the most loyal customers use multiple brands and working WITH that fact will help you a great deal.
You need to think from a customers point of view. It's not about you and how pretty or authoritative or polished your brand is. It's about how you help make her feel. What does she need? What does she desire? I've said it before, and here I go again:
Social is about making your customers’ lives simpler, less confusing, less alienating, more efficient, more meaningful and just plain better.
It costs less money and more time. Instead of spending $200,000 on ads and $50,000 on a fancy brand channel page, spend that money on hiring great people who understand your customers and your brand (maybe even one of your biggest fans!) to build your community. It will cost you less in the short term and have way more benefits in the long term. Use YouTube best practices...learnt from those who have built strong, adoring, amazing communities of devoted viewers.
Everything is social now and your customers expect more from you now. You need to change your thinking if you want to succeed today. And believe me, you will look back and realize how wrong your approach was when you are spending little money on advertising and lots of time really interacting with your customers.