Social Media

FAME MACHINE”fame. gurus. celebrities. successes. endorsements. $.”

By. Ankita Kapur, Jamesious H.J. Kim, Jane Lee,Chenny Long, Roha Shaikh, Sarah Zhang

15 minutes of fame?

‘Everybody will be world famous for 15 minutes’

Thanks to… Web 2.0 <3 create and publish content, to share ideas, to

vote on them, and to recommend things to others…etc.

WELL. IT’S POSSIBLE…!

What is a Online / Social Media guru?

A term used most often by others to label someone who is perceived to have a great deal of depth and experience in a certain topic / subject & use SM to showcase & execute their skills

Blogs, video channels, personal websites, forums, etc.

Ordinary, regular people Community

The ‘Fame’ Formula

FAME = Personal Branding + Publicity + Brand You Market + Personal Financial Development + Brand Longevity Strategies

SUPER SIMPLE. RIGHT?

JUSTIN BIEBER

http://www.shopglitzyglam.com/index.php/

Classic Purchase Funnel

“from expectation to trial to rating to sharing the actual experience—is now a part of most every purchase or conversion process”

KimKardashian Kim Kardashian

@ancredible is about to share an awesome presentation on celeb endorsements via #socialmedia! 2 minutes ago

Celebrity Endorsements

AGENDA1. Effectiveness

2. Advantages

3. Tools

4. Issues

Effectiveness

Awareness

Famous faces VS.

Ordinary faces

Desire to emulate

Meaning Movement and the Endorsement Process

Grant McCracken (2009)

Advantages

Millions of followers

1 million followers in 1 day= #winning

Typical ads = easily ignored

Tools

Moms

Sports Fans

Teen Girls

Teen Boys

Women 18-24

Men 18-24

Issues

Skepticism…

Scandals

Price & Disclosure

Mr. Buckley

Celebrity gossip/chatter host on YouTube Quit full time administrative assistant job

Revenue: $100,000+ yearly from YouTube Costs: $2,000 camera + $6 backdrop

Revenue Sharing Make money through advertisements on your

videos Clicks or every 1000 impressions

Partner Monetize all videos 1,000+ subscribers & regular uploads Video Views: $2.5 to $5 per 1000 views Channel Views: $0.01 per channel view

Partner

Video: $2.4 million Channel: $0.75 million Total $3.15 million

Partner TubeMogul Research and advertising agency

Celebrity Revenue $

Shane Dawson 315,000

Annoying Orange

288,000

Ryan Higa 151,000

Fred 146,000

Smosh 113,000

Natalie Tran 101,000

Blogging Advertisements

Banners & text ads Google Adsense Amount charged depends on:

› Popularity/Visits› # of ads› # competitors› # interested advertisers› How much advertisers are willing to pay

Blogging Advertisements

$0.5 million a year

Company Endorsements Companies gives products or money for

recommendations

$10,000

$4,000

Company Endorsements

DisclosureShould they disclose they are getting paid?

People do not follow these rules!

No Disclosure

• Visible ads (YouTube/Blogs) that recognizable by a reasonable person

Disclosure

• Hard to recognize ads that are biased (Recommendations)

• Federal Trade Commission requires disclosure

Meet JOE

Hmm!

Celebrity Endorsements

• Establishment of Credibility–Associative Benefit

Sexy Dancer Legs

• Ensured Attention– PR coverage – Higher degree of recall

15-20

million $!

• Rejuvenating a stagnant brand– Compensate for lack of innovative ideas.

• Mass Appeal– Psychographic Connect– Demographic Connect

240 million $ raised

• CO-Creation

Hmmmm......

There are risks...

• The vampire effect

What brand was she promoting again?

• Mismatch between the celebrity and the image of the brand

• Multi brand endorsements by the same celebrity would lead to overexposure– Celebrities endorsing one brand and using

another (competitor)

• Cost

10 MILLION

Whopping 90 MILLION

20 MILLION

• The reputation of the celebrity may derogate after he/she has endorsed the product. – Inconsistency in the professional popularity of

the celebrity

In the end people always forget...

So Does it Work?

4%

78% 18%

According to Adweek...

BUT

Brand Awareness/Equity

Hmm!

YouTube Celebrity Endorsements

• Cost–Promotional tactics

Contests

Promo Codes + Discounts

• Specified Target audience– More relatable and trusted by consumers

New and starting companiesCompanies only selling online

• Measurement of success–Feedback

11, 038,984 Views!

• Less Risk– Can pull out without being noticed– Can use multiple Youtube celebrities

There are risks...• http://www.gurugossip.net/t394p175-bad-experience-with-products-gurus-rave-about

• Youtube personalities must state that the product was endorsed

Juicy Tuesday

Fowler Sisters

• It stays on YouTube

Forever...

Increase Sales/ Gain new consumers

to try it out

The ultimate product: The Clarasonic

Step 1 Step 2

Step 3

Step 3

So Does it Work?

Consumer Perspective

The Modern Celebrity?

Are they better role models or just ordinary people who do not deserve celebrity status?

Survey Results 29% have bought a celebrity endorsed

product 57% have bought a product mentioned by a

Guru

Key Characteristics

PerspectivesCelebrity Endorsements:

-way to raise price of product-self-benefiting

Perspectives

Guru Endorsements:-want information, not an advertisement-easy to pick out the ones being paid

-avoid reviews

Why are Gurus So Influential?• WOM

-speaker motivation: expert status-listener motivation: people of goodwill and bearers of tangible evidence

Future of Social MediaFame and Endorsements

X1=Create a twitter account

Twitter+X= $ X2=Follow targeted people

X3=People will follow you backX4=Tweet relevant information to that target audience

2011: 14% 2006: 28%

2011: 10%

2005: 10%

Teens

Adults

I think it’s ineffective and unethical — 28.41%I don’t have an ethical problem with it, but I think it’s ineffective — 26.14%I think it brings in business, but it makes me uncomfortable –  25.00%I think it is a fine tactic that delivers results –  20.45%

How do you feel about brands paying celebrities and others to post on social networks?

Former YouTube

Star, Current Social Media

Consultant

Former YouTube

Star, Current average American

girl

First Generation Stars

C

ele

britie

s

Effects of Fame

490 Million Users÷5 Million Subscribers= 1 in every 100 view-ers

$150,000÷5 million subscribers= Approximately $0.03 per subscriber

700 Million Users÷100= Approximately 7 Million Subscribers

7 Million x 0.03= 210,000=Adjusted for Inflation $236,500

 “FTC will levy a fine of $11,000 on any marketers (e.g. reviewers, bloggers, users of Facebook, Twitter, etc.) that endorse a product and fail to disclose a relationship with the maker

of that product (if one exists).”

Federal Trade Commission

THANK YOUFor boarding the S.M. Fame Machine!

Q&A session