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Tag: influencers

Video Consumption is Increasing and Media Publishers and Influencers are the Real Winners

Video Consumption is Increasing and Media Publishers and Influencers are the Real Winners

Each year for the past three years, Activate has taken a deep dive into major consumer trends, technology innovations, and industry dynamics as part of the Wall Street Journal D.Live Conference. This year, the management consulting firm identified nine important insights that it predicts will shape or reshape the media industry in the year to come.

I’ve read all 140 slides in Activate’s deck on SlideShare and found that one of their surprising and unexpected insights is something that video marketers will want to know, analyze, and act on – “Big Influencers and Media Brands will Rule Web Video.” Let’s take a closer look at this key trend in the digital video marketing business.

Media Publishers & Influencers Generate Most Views Across Social Video

According to Activate, consumers will dramatically increase their overall time spent watching digital video from 2017 to 2021. Okay, that gentle breeze is not going to knock any leaves out of the trees. But, here’s what will: Activate says the top 1% of creators drive 94% of the views on YouTube.

To back up its prediction, Activate evaluated extensive Tubular Labs data on creators with over 10 million views on YouTube and found that 24% of these creators account for 71% of views. Over on Facebook, 26% of creators account for 77% of views. Both of these groups of top creators have over 50 million views on these social video platforms.

Activate’s analysis of Tubular’s data confirms that influencers and media companies make up 97% of YouTube views in this group of top video creators with more than 50 million views. And 98% of Facebook views come from influencers and media companies. Brands only make up 3% of the views on these platforms. Influencers are defined as personalities, celebrities or public figures with significant social presence. Media companies are defined as organizations whose primary business model is in production and/or distribution of content. This includes some professional influencer entities that have moved upstream.

How Brands Can Find the Right Content Partners to Work With

And here’s something that brands will want to know, analyze, and act on: Tubular Labs data shows that there is a greater ratio of influencers to media companies on YouTube (83% influencers to 17% media companies) and a roughly even ratio on Facebook (52% influencers to 48% media companies). So, if brands are looking for the right content partner to reach the right audience, and get more engagement for less spend, then they need to look in different categories on different platforms.

Activate analyzed the top five YouTube influencers by subscribers in four categories: How-to & Style (like Yuya), People & Blogs (like Roman Atwood), Comedy & Entertainment (like HolaSoyGerman), and Gaming (like elrubiusOMG) as of October 2017. The management consulting firm concluded: “Top web video influencers range across content areas and platforms.” Which may be an obvious statement, but a vital one if you are brand looking to work with the right influencer to reach the right target audience. Combined, these influencers have over 70 billion views on YouTube. And all of these influencers have a strong presence on a second platform, ranging from Instagram (13) or Twitch (5) to Facebook (2).

Activate also analyzed Tubular data for the top U.S. media company creators on YouTube and found 49% are in the Entertainment category (like Ellen), 22% are in Music & Dance (like Justin Bieber), and 9% are in News & Politics (like The Young Turks). Oh, and these media company creators include Smosh, which used to be recognized as an influencer but has recently worked on films produced by Lionsgate and Columbia Pictures, so they’ve been “moved upstream.” So, kudos to Andrew Hecox and Anthony Padilla, who began to post videos on YouTube in the autumn of 2005.

Next, Activate analyzed Tubular data for the top U.S. media company creators on Facebook and found 61% are in the Entertainment category (like Bright Side), and 10% are in News & Politics (like NowThis). So, even if a couple of the categories are the same, there are different leaders on different platforms.

In fact, Activate says, “Influencers who start on a platform do not typically transfer success to another.” So, as I’ve observed back in 2015, the social video market is segmented, not fragmented. Back then, the analogy that I used was: “The European market isn’t fragmented; it’s segmented. Not only does each country have its own language, each one also has its own culture and customs as well as its own folk heroes. And just because 320 million Europeans in 24 countries use the euro doesn’t mean that I’d market a product in France, Germany, Italy and Spain with the same online video that I’d created for an audience of 64 million people in the U.K. (which, of course uses the pound as its currency).” And I wrote that before Brexit.

So, long-time readers of Tubular Insights will not be shocked to read Activate’s observation: “Web video platforms satisfy different content preferences (and) media companies will need to play to each platform’s strengths.” And their analysis extends beyond YouTube, Facebook, and Twitch; it includes Instagram and Snapchat, too.

Nevertheless, Activate notes: “To attract these creators and capture user attention, web video platforms are attempting to move into each others’ turfs.” So, watch initiatives like YouTube Red, YouTube Live, YouTube TV, Facebook Live, and Facebook Watch like a hawk. The video segmentation matrix is shifting even as we speak.

Social Video and the Shift to Live-streaming

Activate also analyzed Tubular data and concludes: “The platforms are also shifting into live streaming — this medium has exhibited rapid growth in views and time spent.” It also includes a chart that may surprise some video marketers. It shows Twitch, a subsidiary of Amazon.com, as the leader in this category (with 743,000 average live streaming viewers), followed by YouTube Live (with 318,000), Facebook Live (with 61,000), and Periscope (with 23,000). This should stop “the rooster’s hallylooyer as he tiptoes on the fence.”

Activate also predicts” “Live-streaming creators will use crowdfunding platforms, such as Patreon, to monetize directly through fans.” This is something that the VlogBrothers, aka the Green brothers, John Green and Hank Green, have been saying since YouTube’s Brandcast event in 2015. So, it’s significant that Activate has come to a similar conclusion independently.

Now, that’s the big story. But, there are lots of other surprising and unexpected insights in the Activate Tech & Media Outlook 2018. For example, did you know there are 31 hours in a day? If you want, I can share my thoughts on these in a future post. Just let me know if that’s something that you’d be interested in reading by sharing your thoughts on Facebook or Twitter.


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Why Paying Celebrity Influencers $500,000 for a #Sponsored Video Ad May Not Give You the Best ROI [Advertising Week 2017]

Why Paying Celebrity Influencers $500,000 for a #Sponsored Video Ad May Not Give You the Best ROI [Advertising Week 2017]

On Monday, I attended several sessions at Advertising Week, including #Sponsored and The Rise of Celebrity Influencers for Subscription & E-Commerce Marketing. If you want the read the top news stories from Advertising Week, I can recommend Adweek’s coverage of the event. But, you already know that Tubular Insights is no longer be reporting news. Instead, we are focusing on delivering strategic insights, critical data, tactical advice, and trends in the digital video marketing business. And the biggest epiphany that I experienced while listening to panelists talk about #Sponsored content and the value of celebrity influencer marketing for small businesses, subscription boxes and services, and e-commerce was the answer to this question: “Is it worth paying Kim Kardashian West $500,000 for a #sponsored #ad?”

Celebrity Influencers & Sponsored Content

Now, no one actually mentioned Kimberly Kardashian West during the sessions that I attended. But, none of the influencers on any of the panels that I attended disclosed how much they get paid by brands to create a sponsored video. But in the session moderated by Ashley Iaconetti, a reality TV personality who first appeared on ABC’s The Bachelor, it became clear why Paul Desisto, a senior talent agent at Central Entertainment Group (CEG), Jolie Jankowitz, the Director of Influencer Marketing for FabFitFun, and Caitlin McLarnon, the Growth Marketing Manager of the US division of HelloFresh, have all worked with Ashley before and would love to work with her again.

Yes, Iaconetti is a fan favorite because she is very open with her emotions. But, CEG’s clients, FabFitFun, and HelloFresh are all trying to leverage influencers to improve their company’s bottom line. And Iaconetti provides a better return on marketing investment (ROMI) than Kardashian West, who is also a reality television personality, would. Wait! How do I know that? Nobody even mentioned Kim Kardashian West during the session on The Rise of Celebrity Influencers for Subscription & E-Commerce Marketing. And nobody mentioned what they had paid or would pay Ashely Iaconetti, either. But, we do know what the Kardashians ask for.

According to “This Is How Much the Kardashians Get Paid for One Instagram Post,” by Sarah Karmali in Harper’s Bazaar UK, Michael Heller, the CEO of digital-marketing firm Talent Resources – the company that arranges many of the reality-TV family’s deals – told US Weekly that some companies have been known to pay up to $500,000 to get access to Kim Kardashian’s (103.3 million) Instagram followers, while sisters Khloé and Kourtney can earn up to $250,000 a post.” (They have 69.1 million and 58.7 million followers respectively).

So, there you have it: You could call it the Kardashian Standard. But, it should come with the following warning: This is what you’d have to pay if you measure influencers on only one dimension: Reach.

Engagement: The Influencer Metric That Matters

But, Desisto, Jankowitz, and McLarnon don’t use any of the Kardashians. But, they all use Iaconetti. Why? Because they measure more than reach; they also measure engagement. And based on my analysis of what they did and didn’t say during the session, they know how to calculate ROMI.

Now, return on marketing investment (ROMI) is calculated using a different formula than the typical return-on-investment (ROI) formulas that most chief financial officers (CFOs) use. It’s different because ROMI measures operational expenditures (OPEX), while ROI measures capital expenditures (CAPEX). But, the amount spent on marketing is typically expensed in the current period (quarter); it isn’t “tied up” in plants and inventory. So, when most CFOs ask their chief marketing officers (CMOs) to report the ROI of an influencer marketing campaign, they’re asking for the wrong measure of success.

Here’s the formula for calculating ROMI: / Marketing Spending ($).

So, Kim Kardashian West charges brands $500,000 for a single Instagram video post like this one. It appeared Aug. 22, 2016, and got more than 16 million views.

Instagram Photo

Well, SugarBearHair, the sponsor of Kim’s Instagram post, charges $79.99 for a 3-month supply of Gummy Hair Vitamins. And, let’s say that SugarBearHair’s contribution margin is 50%. This is a scientific wild ass guess (SWAG). So, Kim’s #ad needed to generate over 25,000 orders to deliver $2 million in incremental revenue – / $500,000 – for SugarBearHair to get an ROMI of 1. In plain English, Kim’s Instagram post needed to generate $2 million in orders for SugarBearHair to see $1 in profit for every $1 it spent on her sponsored content. Usually, marketing spending will be deemed as justified if the ROMI is positive.

But, what if Desisto, Jankowitz, and McLarnon had identified 10 micro-influencers who didn’t have Kim’s reach, but had an even greater impact on the purchase decisions of their followers. And let’s say they paid these micro-influencers an average of $25,000 apiece to generate $3 million in orders. Do the math and you’d get / $250,000 = an ROMI of 5. In other words, they got $5 in profit for every $1 they spent on sponsored content. Yes, it took more work to find 10 micro-influencers with above average engagement rates, but that effort resulted in more revenue and higher profits.

That’s the strategic insight that I had while listening to panelists talk about #Sponsored content and the value of celebrity influencer marketing for small businesses, subscription boxes and services, and e-commerce. That’s the biggest takeaway that I’ve had so far from Advertising Week. Let me know what you think about my big epiphany. Share your thoughts on Facebook or Twitter.


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Even Influencers Need Influencers: Why Micro-Influencers Matter for Social Video Campaigns

Even Influencers Need Influencers: Why Micro-Influencers Matter for Social Video CampaignsInfluencers are building their own brands online using curated “communities” of micro-influencers to promote their products. We take a look at how micro-influencers have become an essential part of social video marketing.

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Beauty on YouTube: Brands, Influencers and the Millennial Woman

Beauty on YouTube: Brands, Influencers and the Millennial WomanDid you know that Sephora’s YouTube audience is 2.5x more engaged than the average YouTuber? Or that Kat Von D’s audience is 4x more likely to engage in her Sephora content than the average YouTuber? Find out more about Beauty on YouTube when it comes to brands, influencers and the Millennial Woman.

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Beauty on YouTube: Brands, Influencers and the Millennial Woman

Beauty on YouTube: Brands, Influencers and the Millennial WomanDid you know that Sephora’s YouTube audience is 2.5x more engaged than the average YouTuber? Or that Kat Von D’s audience is 4x more likely to engage in her Sephora content than the average YouTuber? Find out more about Beauty on YouTube when it comes to brands, influencers and the Millennial Woman.

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Top 10 Gaming Franchises Earn their Views from Influencers, Not Owned Content

Top 10 Gaming Franchises Earn their Views from Influencers, Not Owned ContentWhen it comes to online video views, gaming is one of the most popular topics ever. Such is the popularity of user-generated content, all of the top 10 gaming franchises earn the majority of their views via Influencers, not via official branded videos.

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Top 10 Gaming Franchises Earn their Views from Influencers, Not Owned Content

Top 10 Gaming Franchises Earn their Views from Influencers, Not Owned ContentWhen it comes to online video views, gaming is one of the most popular topics ever. Such is the popularity of user-generated content, all of the top 10 gaming franchises earn the majority of their views via Influencers, not via official branded videos.

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