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the state of

social media   sponsorships
                     Q2 • 2010
about the report
➡ Information gathered from 2890 respondents

➡ Results include answers from those that indicated
   that they were a blogger, tweeter or other social
   media publisher


         Click here to join the discussion on Twitter

                 #stateofsms
social media sponsorship
➡ Social Media Sponsorship or “SMS” is the practice
  of providing compensation to a social media
  publisher in exchange for mention, promotion or
  review through that publisher’s social media
  channels. Compensation can be in the form of cash,
  free product or service, experiences, discounts,
  coupons or other special incentives.
sms industry growth
                                   Growth of SMS 2004-2009
                   SOURCE : PQ MEDIA Social Media Sponsorships Forecast 2010-2014
$40M
           Cash        Non-Cash                                                                    $35.7M
$36M
                                                                                 $32.9M
$32M


$28M
                                                                $24.8M
$24M


$20M


$16M                                           $15.1M

$12M
                                                                                          $10.3M

$8M                            $7.0M                                     $7.5M

                                                        $4.3M
$4M            $2.5M                   $1.7M
       $0.1M           $0.5M
$0M
         2004            2005            2006             2007             2008              2009
monetizing social media
                     Q: Do you directly monetize
                     your social media activities
          56.2%      through advertisement,
                     sponsorship or affiliate
                     programs?




  11.6%
                          Yes
            32.1%         I Would like to
                          I Don’t want to

                             SOURCE : IZEA Q2, 2010 SMS Survey
53.2%
   of social media publishers have
accepted compensation
            for sponsored content
          34.2% would  SOURCE : IZEA Q2, 2010 SMS Survey
70.5%           of those who said they
would not accept compensation
   said they would accept a free car for a year
         in exchange for blog posts and tweets
                                SOURCE : IZEA Q2, 2010 SMS Survey
advertisers are reaching out
                      Q: Have you ever been
                      approached by someone
                      offering cash, free products,
            71.3%     discounts or other
                      compensation in exchange
                      for a blog post, tweet or
                      other social media
                      promotion?



    28.7%                 Yes
                          No


                                SOURCE : IZEA Q2, 2010 SMS Survey
what have you engaged in?

57.6%       direct sponsorship
            compensation for a specific post or series of posts.




49.3%       indirect sponsorship
            free product was provided, the post was expected but not
            required by advertiser.




27.2%       material relationship
            posts to promote a client, your employer or other party with
            whom you have a financial connection.



                                               SOURCE : IZEA Q2, 2010 SMS Survey
direct sponsorship
            Use and Acceptance Among Different Forms of SMS
100%
                                                                 Would Do
90%
         30.4%
                                                                 Have Done
80%
                          40.5%
                                         64.6%
70%                                                             56.1%

60%      64.3%

50%


40%                       44.5%

30%


20%

                                         16.3%                   17.6%
 10%


 0%
       Blog Posts   Tweets or Updates    Photos                Videos
                                                  SOURCE : IZEA Q2, 2010 SMS Survey
compensation types
               Cash                Free Product            Discounts/Coupons
100%


90%


80%
       71.0%                             69.3%
70%


60%


50%
                                                                    49.2%
                                                                                41.8%
40%


30%            26.9%             25.4%
20%


 10%
                                                            9.0%
                                                  5.3%
                       2.1%
 0%



           Prefer             Accept             Dislike       SOURCE : IZEA Q2, 2010 SMS Survey
sponsorship frequency
                       Q: How many times have
                       you promoted an advertiser
                       through your social media
   29.9%    6.6%
                       channels in exchange for
               12.8%   some form of
                       compensation?


                           20+ Times
               25.1%       11-20 Times
    25.6%                  6-10 Times
                           2-5 Times
                           Once
                               SOURCE : IZEA Q2, 2010 SMS Survey
twitter followers
                          Total Followers on Personal Account
35%

                            31.4%
32%


28%               27.1%

25%


21%


18%

        14.3%
14%                                   13.4%

11%

                                                6.9%
 7%
                                                          4.2%
4%                                                                      2.6%           2.0%

0%
      Don’t Use   1-100     101-1k   1k-2.5k   2.5k-5k   5k-10k      10k-100k         100k+
                                                                 SOURCE : IZEA Q2, 2010 SMS Survey
tweeter expectation
                    a sponsored tweet
                          from my account is worth



                           $124
Q: How much do you
think a tweet from your
personal twitter
account is worth?




                                         SOURCE : IZEA Q2, 2010 SMS Survey
blog traffic
                             Monthly Page Views Received on Blog
30%


27%                  25.9%

24%


21%      20.1%                  19.8%
                                         18.7%
18%


15%


12%
                                                  10.0%
                                                                          9.0%
9%


6%
                                                            4.3%
                                                                                         3.0%
3%


0%
      I Don’t Know   0-1k       1k-5k   5k-25k   25k-100k 100k-1m       1m-5m            5m+
                                                                   SOURCE : IZEA Q2, 2010 SMS Survey
blogger expectation
                        a sponsored post
                            on my blog is worth



                        $179
Q: How much do you
think a blog post on
your personal blog is
worth?




                                      SOURCE : IZEA Q2, 2010 SMS Survey
disclosure practices
                              Q: What form of disclosure
                              do you use when working
                              with advertisers?
                  24.0%
  21.6%


                      20.6%     What Do You Mean?
                                In-Post
          33.8%                 DP
                                In-Post + DP


                                      SOURCE : IZEA Q2, 2010 SMS Survey
disclosure practices
                                  ANSWERS AMONG PEOPLE THAT
                          INDICATED THEY WERE PR, SOCIAL MEDIA
                                  OR MARKETING PROFESSIONALS

              26.1%
  20.6%                   Q: What form of disclosure
                          do you use when working
                          with advertisers?

                  22.2%       What Do You Mean?
                              In-Post
      31.0%                   DP
                              In-Post + DP


                                     SOURCE : IZEA Q2, 2010 SMS Survey
ftc guidelines
              Awareness Among PR, Social Media and Marketing Professionals
40%


36%   35.0%

32%
                                                                              29.9%
28%
                              26.1%
24%


20%


16%


12%
                                                     9.0%
8%


4%


0%
      None            Have Heard of Them      Have Read Them         Read & Understand
                                                                SOURCE : IZEA Q2, 2010 SMS Survey
ANNUAL SMS INCOME by social media hrs invested /mo
$4,000                                            $700


$3,600                                            $630                                    $623
                                         $3,344

$3,200                                            $560


$2,800                                            $490


$2,400                                            $420


$2,000                                            $350


$1,600                                            $280


$1,200                                            $210                          $202

                                $883
 $800                $724                         $140
                                                                     $109
                                                           $89
          $423
 $400                                              $70


   $0                                              $0
         1-10/mo   11-20/mo   21-40/mo   40+/mo          1-10/mo   11-20/mo   21-40/mo   40+/mo


          annual sms blog income                         annual sms tweet income
twitter users earn

     298%
       more in sms from their blog
          than non-twitter users
                       SOURCE : IZEA Q2, 2010 SMS Survey
ANNUAL DOLLARS invested by publishers per year
60%




               $711
 54%                                       52.8%


 48%
               average
 42%


 36%
       Q: How much do
       you spend each
 30%   year on hosting,
 24%
       education,
                                  21.6%                              22.0%
       conferences, and
 18%
       other social media
 12%
       expenses?

 6%
        2.1%              1.9%
 0%
       $10k+             $5-10k   $1-5k   $1.00-1k                     $0

                                                   SOURCE : IZEA Q2, 2010 SMS Survey
blog sms by category
                           Average Annual Income from Blog SMS by Blog Category

Family & Parenting                                                                                      $3,256



        Marketing                                                 $1,698



    Men’s Lifestyle                                           $1,669



    Entertainment                                    $1,339



       Technology                                    $1,333



      Social Media                                   $1,319



   Beauty & Style                           $1,060



    Life In General                  $771


                      $0     $400   $800    $1,200       $1,600       $2,000   $2,400    $2,800    $3,200    $3,600     $4,000

                                                                                        SOURCE : IZEA Q2, 2010 SMS Survey
you
   thank


          For More Information Please Contact
 Peter Scott, APR • VP, Business Development
                          1.866.514.1680x136

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Izea state of_sms_q2

  • 1. the state of social media sponsorships Q2 • 2010
  • 2. about the report ➡ Information gathered from 2890 respondents ➡ Results include answers from those that indicated that they were a blogger, tweeter or other social media publisher Click here to join the discussion on Twitter #stateofsms
  • 3. social media sponsorship ➡ Social Media Sponsorship or “SMS” is the practice of providing compensation to a social media publisher in exchange for mention, promotion or review through that publisher’s social media channels. Compensation can be in the form of cash, free product or service, experiences, discounts, coupons or other special incentives.
  • 4. sms industry growth Growth of SMS 2004-2009 SOURCE : PQ MEDIA Social Media Sponsorships Forecast 2010-2014 $40M Cash Non-Cash $35.7M $36M $32.9M $32M $28M $24.8M $24M $20M $16M $15.1M $12M $10.3M $8M $7.0M $7.5M $4.3M $4M $2.5M $1.7M $0.1M $0.5M $0M 2004 2005 2006 2007 2008 2009
  • 5. monetizing social media Q: Do you directly monetize your social media activities 56.2% through advertisement, sponsorship or affiliate programs? 11.6% Yes 32.1% I Would like to I Don’t want to SOURCE : IZEA Q2, 2010 SMS Survey
  • 6. 53.2% of social media publishers have accepted compensation for sponsored content 34.2% would SOURCE : IZEA Q2, 2010 SMS Survey
  • 7. 70.5% of those who said they would not accept compensation said they would accept a free car for a year in exchange for blog posts and tweets SOURCE : IZEA Q2, 2010 SMS Survey
  • 8. advertisers are reaching out Q: Have you ever been approached by someone offering cash, free products, 71.3% discounts or other compensation in exchange for a blog post, tweet or other social media promotion? 28.7% Yes No SOURCE : IZEA Q2, 2010 SMS Survey
  • 9. what have you engaged in? 57.6% direct sponsorship compensation for a specific post or series of posts. 49.3% indirect sponsorship free product was provided, the post was expected but not required by advertiser. 27.2% material relationship posts to promote a client, your employer or other party with whom you have a financial connection. SOURCE : IZEA Q2, 2010 SMS Survey
  • 10. direct sponsorship Use and Acceptance Among Different Forms of SMS 100% Would Do 90% 30.4% Have Done 80% 40.5% 64.6% 70% 56.1% 60% 64.3% 50% 40% 44.5% 30% 20% 16.3% 17.6% 10% 0% Blog Posts Tweets or Updates Photos Videos SOURCE : IZEA Q2, 2010 SMS Survey
  • 11. compensation types Cash Free Product Discounts/Coupons 100% 90% 80% 71.0% 69.3% 70% 60% 50% 49.2% 41.8% 40% 30% 26.9% 25.4% 20% 10% 9.0% 5.3% 2.1% 0% Prefer Accept Dislike SOURCE : IZEA Q2, 2010 SMS Survey
  • 12. sponsorship frequency Q: How many times have you promoted an advertiser through your social media 29.9% 6.6% channels in exchange for 12.8% some form of compensation? 20+ Times 25.1% 11-20 Times 25.6% 6-10 Times 2-5 Times Once SOURCE : IZEA Q2, 2010 SMS Survey
  • 13. twitter followers Total Followers on Personal Account 35% 31.4% 32% 28% 27.1% 25% 21% 18% 14.3% 14% 13.4% 11% 6.9% 7% 4.2% 4% 2.6% 2.0% 0% Don’t Use 1-100 101-1k 1k-2.5k 2.5k-5k 5k-10k 10k-100k 100k+ SOURCE : IZEA Q2, 2010 SMS Survey
  • 14. tweeter expectation a sponsored tweet from my account is worth $124 Q: How much do you think a tweet from your personal twitter account is worth? SOURCE : IZEA Q2, 2010 SMS Survey
  • 15. blog traffic Monthly Page Views Received on Blog 30% 27% 25.9% 24% 21% 20.1% 19.8% 18.7% 18% 15% 12% 10.0% 9.0% 9% 6% 4.3% 3.0% 3% 0% I Don’t Know 0-1k 1k-5k 5k-25k 25k-100k 100k-1m 1m-5m 5m+ SOURCE : IZEA Q2, 2010 SMS Survey
  • 16. blogger expectation a sponsored post on my blog is worth $179 Q: How much do you think a blog post on your personal blog is worth? SOURCE : IZEA Q2, 2010 SMS Survey
  • 17. disclosure practices Q: What form of disclosure do you use when working with advertisers? 24.0% 21.6% 20.6% What Do You Mean? In-Post 33.8% DP In-Post + DP SOURCE : IZEA Q2, 2010 SMS Survey
  • 18. disclosure practices ANSWERS AMONG PEOPLE THAT INDICATED THEY WERE PR, SOCIAL MEDIA OR MARKETING PROFESSIONALS 26.1% 20.6% Q: What form of disclosure do you use when working with advertisers? 22.2% What Do You Mean? In-Post 31.0% DP In-Post + DP SOURCE : IZEA Q2, 2010 SMS Survey
  • 19. ftc guidelines Awareness Among PR, Social Media and Marketing Professionals 40% 36% 35.0% 32% 29.9% 28% 26.1% 24% 20% 16% 12% 9.0% 8% 4% 0% None Have Heard of Them Have Read Them Read & Understand SOURCE : IZEA Q2, 2010 SMS Survey
  • 20. ANNUAL SMS INCOME by social media hrs invested /mo $4,000 $700 $3,600 $630 $623 $3,344 $3,200 $560 $2,800 $490 $2,400 $420 $2,000 $350 $1,600 $280 $1,200 $210 $202 $883 $800 $724 $140 $109 $89 $423 $400 $70 $0 $0 1-10/mo 11-20/mo 21-40/mo 40+/mo 1-10/mo 11-20/mo 21-40/mo 40+/mo annual sms blog income annual sms tweet income
  • 21. twitter users earn 298% more in sms from their blog than non-twitter users SOURCE : IZEA Q2, 2010 SMS Survey
  • 22. ANNUAL DOLLARS invested by publishers per year 60% $711 54% 52.8% 48% average 42% 36% Q: How much do you spend each 30% year on hosting, 24% education, 21.6% 22.0% conferences, and 18% other social media 12% expenses? 6% 2.1% 1.9% 0% $10k+ $5-10k $1-5k $1.00-1k $0 SOURCE : IZEA Q2, 2010 SMS Survey
  • 23. blog sms by category Average Annual Income from Blog SMS by Blog Category Family & Parenting $3,256 Marketing $1,698 Men’s Lifestyle $1,669 Entertainment $1,339 Technology $1,333 Social Media $1,319 Beauty & Style $1,060 Life In General $771 $0 $400 $800 $1,200 $1,600 $2,000 $2,400 $2,800 $3,200 $3,600 $4,000 SOURCE : IZEA Q2, 2010 SMS Survey
  • 24. you thank For More Information Please Contact Peter Scott, APR • VP, Business Development 1.866.514.1680x136