Social media has completely changed celebrity marketing. The definition of celebrity has changed as a new type of celebrity has emerged. In the past, a celebrity meant a famous actor, singer, musician, or athlete. Now other stars have emerged in social media. Many of them boast millions of followers and qualify as genuine celebrities and influencers in their niche.
While many brands still prefer traditional celebrities as brand spokespersons and influencers, social media stars are closing the gap, reveals the Future of Celebrity Marketing report published by Econsultancy and Celebrity Intelligence. In the survey results, half of company respondents and 39 percent of agencies said film actors are most relevant to their strategy; 43 percent of company respondents and 46 percent of agencies said social media stars were most relevant.
More marketers work with celebrities and influencers, the survey shows. Almost three-quarters of agencies surveyed work with celebrities and another 12 percent plan celebrity endorsements within the next year.
More brands now do one-off campaigns with social media personalities rather than longer term collaborations. Marketers surveyed attribute the trend to the “Tiger Woods effect.” They worry that the celebrity will suffer sudden loss of popularity or a scandal. Nevertheless, marketers see value in long-term arrangements as long as the arrangement offers an authentic match for both parties.
The High Cost of Influencers
Cost is the biggest hurdle for brands. Most agencies (83 percent) cited the high cost of talent as their biggest influencer marketing challenge. Perhaps in response to that challenge, 38 percent will increase spending moderately next year.
Some experts recommend micro-influencers as a solution to high costs. Although micro-influencers lack the millions of followers of famous celebrities, they have greater than average reach in their niche and hold substantial sway over followers’ purchase decisions.
Micro-influencers have up to 22.2 times more conversations a week about recommendations on what to buy versus an average consumer, according to research by Dr. Jonah Berger, a marketing professor at the Wharton School of the University of Pennsylvania, and the Keller Fay Group. In addition, 82 percent of consumers surveyed said they were highly likely to follow a recommendation of a micro-influencer.
Because micro-influencers are not as obvious as celebrities, a key challenge is locating them in the first place. Many organizations turn to social media listening tools such as CyberAlert Buzz, searching for keywords that describe the market niche. Social media monitoring and measurement tools can help identify influencers with active and engaged followers as well as measure the effectiveness of PR and marketing campaigns.
Measurement Difficulties
After costs, top challenges include identifying celebrities who are a good fit for their brand and measuring ROI of working with celebrities and influencers.
Many marketing experts say the lack of measurement is the most significant shortcoming in influencer marketing programs. “The element missing from most influencer marketing agency programs is measurement,” writes digital marketer Ben Brausen in his blog. “Sure, they may be showing the end results of the programs with influencers attached but that’s not enough to prove the value of the added work required for an influencer program. Influencer marketing measurement must show the additional value influencers brought above and beyond what the campaign would have brought without them.”
A customized social media measurement service can determine how influencer marketing programs are performing. Measurement services such as CyberAlert offer a comprehensive package of customized metrics for measurement of influencer marketing programs.
Bottom Line: Marketers favor social media stars almost as much as — and sometimes more – than film and television actors and other types of traditional celebrities. While brands clearly recognize the benefits of influencer marketing, they are held back by high costs, identifying appropriate influencers and measuring ROI of influencer marketing campaigns. These challenges can be overcome by using media listening tools to identify niche-focused micro-influencers and by employing customized services to measure the results produced by social media influencer marketing programs.
William J. Comcowich founded and served as CEO of CyberAlert LLC, the predecessor of Glean.info. He is currently serving as Interim CEO and member of the Board of Directors. Glean.info provides customized media monitoring, media measurement and analytics solutions across all types of traditional and social media.
