The document summarizes an article about a journalist who conducted an experiment to see if he could become a paid Instagram influencer within one month. Some key points: - He amassed over 5,000 followers using automation tools to like and comment on other posts, growing his audience quickly. - He then landed his first brand partnership, receiving a free t-shirt from a clothing company in exchange for a sponsored post while maintaining that his positive comments were authentic. - The article examines whether being an influencer is really that easy or if there are drawbacks like feeling pressure to constantly post content, both personal and sponsored. It also looks at how influencer marketing works and how followers don't guarantee payment from

1. Influencer Marketing:
Buying and Selling
Audience Impressions
Michael Ghen

2. Workshop Agenda
● What is influencer marketing?
○ Chafkin Case Study
● How does influencer marketing
work?
● Buying and Selling Influence
Workshop Objectives
● Review basics about influencer
marketing
● Teach you about pricing
promotions

3. Max Chafkin, Bloomberg Newsweek:
Confessions of an Instagram Influencer
● “These “influencers,” as they’re known, are
media properties unto themselves, turning
good looks and taste into an income
stream”
● Does it work for brands?
○ “marketers were essentially throwing
money away on influencers”
● Is it so easy anyone can do it?
○ VaynerMedia: No
○ Socialyte: Yes
Src: https://www.bloomberg.com/news/features/2016-11-30/confessions-of-an-instagram-influencer

4. Max Chafkin, Bloomberg Newsweek:
Give me some cash, I’ll post an insta
“With [Socialyte] advising me, I would go undercover for
a month, attempting to turn my schlubby @mchafkin
profile into that of a full-fledged influencer. I would do
everything possible within legal bounds to amass as
many followers as I could.
My niche would be men’s fashion, a fast-growing
category in which I clearly had no experience.
The ultimate goal: to persuade someone, somewhere, to
pay me cash money for my influence.”
Src: https://www.bloomberg.com/news/features/2016-11-30/confessions-of-an-instagram-influencer

5. Max Chafkin, Bloomberg Newsweek:
You don’t have a cute dog, do you?
“You sell part of your soul. Because no matter what
beautiful moment you enjoy in your life, you’re going to
want to take a photo and share it. Distinguishing
between when is it my life and when am I creating
content is a really big burden.”
“I’d assumed two things about the beautiful people of
Instagram. First, I figured they used the service the way
Instagram suggests... Second, I assumed they took the
photos themselves. Neither was true, as I learned when,
on an unseasonably warm morning in early October, I
brought 18 outfits to the Socialyte office.”
Src: https://www.bloomberg.com/news/features/2016-11-30/confessions-of-an-instagram-influencer

6. Max Chafkin, Bloomberg Newsweek:
There aren’t shortcuts but there are apps
“Part of what makes Instagram valuable to advertisers is
that there aren’t many shortcuts to accruing an audience.
Unlike Twitter, for instance, where a clever quip can be
quickly retweeted, bringing a deluge of followers, Instagram
is relatively resistant to viral growth.”
“To avoid looking totally desperate, I hid my hashtags below
a series of line breaks. To avoid any unnecessary creativity,
I used an app, Focalmark, which allowed me to input a
couple of variables about each shot… and would then spit
out a list of hashtags.”
Src: https://www.bloomberg.com/news/features/2016-11-30/confessions-of-an-instagram-influencer

7. Max Chafkin, Bloomberg Newsweek:
A steady stream of likes and new followers
“ I would need at least 5,000 followers to have any hope of
making money”
“That night, I signed up for a service recommended to me
by Socialyte called Instagress. It’s one of several bots that,
for a fee, will take the hard work out of attracting followers
on Instagram. For $10 every 30 days, Instagress would zip
around the service on my behalf, liking and commenting on
any post that contained hashtags I specified.”
“By the end of the month, I liked 28,503 posts and
commented 7,171 times”
Src: https://www.bloomberg.com/news/features/2016-11-30/confessions-of-an-instagram-influencer

8. Max Chafkin, Bloomberg Newsweek:
Thanks for the t-shirt, bro #liveauthentic
It no longer seemed weird that all day and all night my virtual double
was doling out likes and saying things like “High five for that!” about
pictures I had not seen and would never see.
The breakthrough came as my follower count pushed above 800. I got a
message from Andrew Hurvitz, a photographer in Los Angeles and the
founder of Marco Bedford, a clothing line. “You want to collaborate?”
he wrote. I was ecstatic.
As an official spokesman for Marco Bedford (#ad #sp #liveauthentic), I
feel compelled to say that I stand by my characterization that Hurvitz’s
shirt, which retails for $59, is “beautiful.”
Src: https://www.bloomberg.com/news/features/2016-11-30/confessions-of-an-instagram-influencer

9. Chafkin Case
Study
Influencer Marketing Themes
Anyone can do it
You are buying and selling influence
It is manufactured
There are no shortcuts to success
You need a large, engaged audience

10. Does Influencer Marketing Work?
● Cut through the noise and stand
out among the crowd
● Brand advocates (aka
influencers)
● Buyers trust a voice of authority
● Orient your marketing activity
around these individuals, brands
can attract and retain customers
on a long-term basis
Info. Src.: http://www.forbes.com/sites/danielnewman/2015/06/23/love-it-or-hate-it-influencer-marketing-works
Img. Src.: http://www.talentculture.com/5-lessons-on-influencer-marketing-and-brand-transparency/ /

11. What are the experts saying?
● Influencer marketing is the fastest growing and most cost-effective channel.
(Tomoson)
● Ninety-two percent of consumers turn to people they know for referrals above
any other source. (Tapfluence and Influitive)
● Word of mouth generates 2 times the sales of paid advertising. (McKinsey)
● Customers acquired through word-of-mouth have a 37 percent higher
retention rate. (Deloitte)
● Businesses make $6.50 for every dollar invested in influencer marketing.
(Tomoson)
Sources: http://www.forbes.com/sites/danielnewman/2015/06/23/love-it-or-hate-it-influencer-marketing-works/

12. Macro vs. Micro Influencers
● Macro Influencer
○ Nikon wanted to sell more digital
cameras, so they hired Ashton
Kutcher to do an advertising
campaign
● Micro Influencer
○ These people have substantial
followings and are often very well
known for something specific like
marketing, leadership, or even
parenting
○ Not celebrities
Info. Src.: http://millennialceo.com/micro-influencer/
Img. Src.: Instagram @eatyourhe.art.out

13. Know Your Numbers, Measure ROI
● Traditional Marketing Metrics
○ Cost Per Click (CPC)
○ Cost Per Thousand Impressions (CPM)
● Influencer Marketing Campaign Goals
○ Sell product
○ Generate leads
○ Get followers/likes
● How can you measure return on
investment?
● How can you price a campaign?

14. Buying and Selling Influence
Buying
● Estimate price per post based on
engagement statistics (likes, comments)
not followers
○ Use CPM or CPC based pricing
○ Know your conversion rates
● Don’t overpay, there’s always another
influencer
● Focus on building long-term relationships
○ Evangelist Approach
Selling
● You can charge what you want
○ Not necessarily going to get it
● Focus on collaboration
● Build an authentic audience
○ Engagement is critical to influence
● Not all companies will pay cash
○ Some will give you free/discounted
product

15. Chicago Technology for Marketing and Sales
Thanks for attending!
Questions