This document discusses influencer marketing and the value that influencers provide. It notes that while influencers have large social media followings that give visibility to brands, there is no set pricing structure for influencer campaigns. Prices can range from $50 per tweet to $12 million annually for top influencers. Additionally, the document notes that recent cases have been filed against influencers for failing to disclose paid partnerships. Trust in influencer recommendations and consumer opinions posted online is high, according to global surveys. Word of mouth, including online reviews, has a significant impact on purchasing decisions, especially for new products.

1. At What Cost?

3. Influencers add
visibility that make
products or services
viable via their
credibility with the
public.
 Influencers have
large followings on
social media that
organizations draw
on to extend reach.

4. There isn’t a set cost
structure or contractual fee
parameters that can be
used to gauge the exact
worth of each influencer.
Reports have prices ranging
from $50 for a tweet to $12
million annually for top
ranked influencers that have
mass followings, according
to INC.

5. Recent charges have
been filed against
several marketers and
celebrity influencers on
Instagram for not
disclosing that some
endorsements are paid
for by advertisers,
according to THE DRUM.

6. ”

7. Influencers have followers that follow
their social medial channel that
provides either entertainment,
information or some combination of
both.
YouTube influencer, Michelle Phan,
earns her estimated $3 million
annually by doling out beauty tips to
her multi-generational followers.
There are influencers across the
spectrum of arts, issues, and
concerns that exercise influence over
those that share a like-minded view .

9. There is a perceived “value added”
proposition to using influencers in
marketing campaigns. Those with
proven appeal and a mass following
can garner the views desired, but not
always the conversions needed for
success.
On the following slides we’ll look at
some data from nielsen and
mckinsey that will give better insight
into the value of “influencer
marketing”.

11. Global Trust In Advertising: More than
eight-in-ten respondents (83%) say they
completely or somewhat trust the
recommendations of friends and family.
Two-thirds (66%) say they trust consumer
opinions posted online—the third most
trusted format.
Branded websites are the second most
trusted format by 70% of global
respondents. 56% trust email they signed
up for.

12. Word of mouth is the primary factor
behind 20 to 50 percent of purchasing
decisions. Its influence is greatest when
consumers are buying a product for the
first time or when products are relatively
expensive….
Today, it also operates on a one-to-
many basis: product reviews are posted
online and opinions disseminated
throughout social networks.
As consumers have become
overloaded they have become
increasingly skeptical about traditional
company-driven advertising and
increasingly prefer to make purchasing
decisions largely independent of what
companies tell them about products.