Part 1: Why Ad Dollars Are Flowing Into Influencer Marketing

Blake Stockton
A free video tutorial from Blake Stockton
Marketing Consultant & Internet Entrepreneur
4.2 instructor rating • 2 courses • 4,149 students

Lecture description

Learn what exactly a social media influencer is and why the industry is exploding.

Learn more from the full course

How to Build a Business as a Social Media Influencer

Learn how tens of thousands of social media influencers create a profitable business with as little as 2,500 followers.

02:07:57 of on-demand video • Updated January 2017

  • Connect with brands that want to hire them to promote sponsored content.
  • Value their social media follow with a dollar amount.
  • Earn revenue from their social media following.
  • Grow their social media following.
English [Auto] In this video we're going to show you the background of influencer marketing and make the case and show you exactly why it's exploding. If you already have a presence on social media and you're looking to learn how to monetize it and make some money this will make the case where it's the right place to be and give you some good info about the market. And if you haven't made your count yet it will convince you why you need to go ahead and start it at least try. So let's go ahead and get into these slides. So what is it exactly is the social media influence or just to make sure we're all on the same page here. And it's basically we're going to keep the definition super simple here. Anyone somebody who has a large following on social media and large following doesn't mean millions of followers. It really could be minimum 5000 really 10000 is a good minimum to start having that influence start possibly earning income or getting free items to promote on your account. So that's really the bare minimum there. And it could also be a blog or web site. You can be an influence or with that as well. Maybe you have a blog and you're looking to learn more about social media. You can and using social media to also supplement your blog similar to kind of what I'm doing. You can make money off that blog as well and make it as a whole package social media and Web site for your influencing or posts with brands. But one important thing you have to remember if you're growing your count or thinking about it you have to have engagement engagement is really where the money is going to come. It's going to be much better with engagement you have to you'll have to make much more money with less followers if you have that engagement and engagement is when people like it share it comment on it because it shows brands that you have followers who are actually interested and trust you because if they trust you they're more likely to trust the brand. Take action because ultimately the brand wants e-mail sign ups they want more sales so you can deliver that to them. You'll have a great partnership with that company going forward. And I'll get into this a little bit later when I talk about my tips. But often many of these social media influencers that you see have huge accounts million followers millions of followers hundreds and hundreds of thousands they got in early to the platform. You know it's easy to forget that snapchat has been around for five years Instagram's been around for six years and a lot of the folks if you are on these platforms for four years five years already it would be easy to grow that account. So when you're in here and involved it's it's good to see you're more likely to see what the next big thing is. So it's it's it makes the whole process a lot easier if you get in early. Here you can see a Google trend which basically shows what people are are searching for you can search for really any any number of topics and you can see here influence or marketing is just exploded over the last few years especially recently it's almost going straight up there because the interest is growing. The ad dollars are starting to flow in that industry. And the reason why. So the reason why influence or marketing is exploding and these advertising dollars are starting to come is because it's been a real struggle to reach millennials. And I reached them I mean by You have a brand you have a product and you're trying to advertise to them. And a lot of this is big and millennials are really there's some not an exact age here but generally let's say it's 22 to 38 and then it's also hard to reach agency which is below 20 22 and down. It's hard to reach these folks. And here I'm going to tell you an anecdotal story that it's kind of a one off story but I think it's telling is that I recently visited my cousins a couple of months ago. They're pretty young ones nine once 13. And I was interested in what they're watching. You know what are you watching on TV. What kind of what are the cool new shows that kids watch. And when I asked them what they watched on TV what they said is that they don't watch TV. They were almost confused by the question because they're just not watching. They're getting they're growing out of like Disney. So they're not watching TV they're watching maybe some Netflix shows but mostly what they're spending the vast majority of their time on every day is on YouTube. They're watching daily bloggers. I was really surprised that my 9 year old is watching daily flogging videos which is basically people who document their life every day within video and then they edit it and post it on their on their YouTube channel and then they're watching sports videos and soccer tips and highlights. So these folks are moving away from these millennials and these Gen-Xer are moving away from the traditional advertising. So advertisers are struggling to reach them and they're turning to influencers. Here's a really interesting stat that tells some more story gives you some more info on the story. Ninety percent of millennials value the opinions of their friends parents and online experts over traditional media and advertising. So you have to remember that millennials Gen-Xer as they grew up a lot with these pop up ads and they're just more savvy to this advertising. And and this is really not millennials but it's for all folks there especially with the rise of social media. They're looking to people they trust for recommendations and because you know that's just like what I said they're turning these advertisers are turning to these influencers to promote their products to promote their brands and a really interesting thing has popped up because when you think of influencers you may be thinking of the celebrities and the people who have these huge accounts. But there's a really interesting group called the Power middle and so kind of another quote here to back it up. Ninety two percent of today's consumers trust recommendations from others over branded content. So people are trusting the people they follow online even if they've never met them. And the power middle OK the power middle is probably you. It's the people with between the influencers between 10000 and 250000 followers and this group is growing because there's been an explosion of platforms that have made it easy for brands to advertise to this group. So for example if a brand had $100000 that they wanted to spend on influence or marketing would you spend $100000 on a celebrity endorsement. You might. You might. But what we're finding and what I'm finding and reading about is that those brands would rather take that money and spend a thousand dollars each on a hundred different power middle influencers and get a hundred different pieces of content and videos and pictures that they can promote on their own brand on their own website on their own social media and getting all of those folks reach their their audiences because with those power the middle let's say you have 50000 followers you may have a really good relationship with them and you can see this through the engagement a much better relationship than that celebrity who you're just following for entertainment. So the power middle is growing quickly with more advertising dollars are pouring into it and these new platforms which I'm about to talk about in a minute is making it easier to connect brands and power middle influencers.