Social media celebrities become millionaires this his how they changed marketing landscape
To reach a wide audience, brands are devoting an increasing share of their advertising budgets to social networking sites led by young icons that help shape a new sales culture.
The French newspaper Le Monde devoted an investigation to the story of the young Brazilian who began publishing his travel photos on Instagram five years ago while studying management and economics at the University of Paris Dauphine, transforming it from a hobby to an influential role, and then get a career to gain the money.
The reporter said that influencers or catalysts are now millions in the world, including about 150 thousand in France only carry out the tasks of bringing brands to their communities through social networks because they have enormous power as “new media.”
An alarming force Benjamin Seminar, professor of brand strategy at the French Institute of Fashion in Paris, says the term “influencer” is somewhat similar to “hypnotist”, as does a star like Kylie Jenner (the youngest star of the Kardashian group) that 147 million followers on Instagram, a The youngest millionaire in history.
The newspaper said that the power of influencers has become a concern since the disclosure of many fraudulent practices, such as the purchase of subscribers to disguised or misleading ads, especially since Fabrizio Frida, head of one of the largest cosmetics groups in the world, caused a stir by announcing that 75% of his advertising budget from now on It was invested in the digital field.
French cosmetics company L’Oreal has spent 47% of its advertising costs on digital media in the first half of 2019, while 36 brands of the group are working with 80,000 influencers. Digital director Lubomera Rochette says this will only happen if we extend the impact to include Modern fan communities.
The world of beauty is the first to grasp the issue, and almost everyone has tried to reach an international audience without regard to traditional marketing, especially since the millennial generation His life on social networks, especially in Asia.
Advertisers are now spending an average of 10% of their marketing budget on these offshore temptations around the world, according to a recent study by the US company eMarket, which believes that these undiminished expenses of $ 8 billion this year, will reach 15 billion Dollars in 2022, except in China.
Bad news for traditional media The same trend is found in France, where the sector accounts for nearly a quarter of the digital expenditures of advertisers, growing by about 20% annually, estimated by the Office of Creative Design at about 1.45 billion euros, and describes it as a stable market globally, which means it grows on the bite of budgets Historical Media.
Advertising professionals in the mid-2000s began searching for new media, when trust between consumers and brands collapsed, to be relied on for bloggers, followed by Facebook, YouTube, and Instagram with features of admiration and sharing.
Frank Gervey, CEO of the European Accor brand president, says he regrets going to middlemen to talk to customers and admits that these newcomers have spent time communicating and establishing a permanent connection with their communities.
If some free products or invitations were enough to reward influencers three years ago, that time is over, warns the founder of marketing influence agency Rich Guillaume Duque Thonon, explaining that chances of getting free advertising will be increasingly rare.
This professionalism will go hand in hand with the emergence of big players in the online influence market, as a group of small agencies specializing in influence.
Marketing team outside the walls The founder and chairman of the agency “Arenod” Bodern Dasson said that influencers are no longer an extension of public relations as they were, and complementary to advertising investments, and many influencers are no longer just interested in gifts but want to participate in the process of creation and innovation, says sociologist Catherine Legel, Even the influencers have become the marketing team of L’Oreal outside its walls.
Direct sales Instagram development head Julie Pellet says that there has been a lot of discussion about the purchase process, so we decided to meet the needs of users and provide an impeccable experience, so more than 130 million users click on the product in the shopping list monthly to find out more or get it on E-commerce of the producing brand.
Direct selling of brands through the affected personal account has just begun to be tested in the United States, she said, and this possibility has been proposed to 20 or more big names in sports, fashion, and beauty.
The newspaper concluded the report that the major influencers have become brands in turn.