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Businesses The Almighty Buck Youtube

Influencers Are Being Paid Big Sums To Pitch Products and Thrash Rivals on Instagram and YouTube (wired.com) 124

"Influencers" are being paid big sums to pitch products on Instagram and YouTube. If you're trying to grow a product on social media, you either fork over cash or pay in another way. This is the murky world of influencing, reports Wired. Brands will pay influencers to position products on their desks, behind them, or anywhere else they can subtly appear on screen. Payouts increase if an influencer tags a brand in a post or includes a link, but silent endorsements are often preferred. An excerpt from the report: The suggestions started early. Months before Lashify had officially launched, one of her investors, who had ties to the cosmetics industry, pulled her aside. He told her to prepare to pay influencers to speak positively about her lashes on YouTube and Instagram. She thought he was being dramatic. He wasn't. Lotti recalls the investor saying that if she wanted Lashify to succeed, quality didn't matter, nor did customer satisfaction -- only influencers. And they didn't come cheap. She was told to expect to shell out $50,000 to $70,000 per influencer just to make her company's name known, an insane amount for a new startup. There was no way around it; that's just how things worked.
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Influencers Are Being Paid Big Sums To Pitch Products and Thrash Rivals on Instagram and YouTube

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  • (the same brands are also paying people to say this isn't happening)

  • by Kohath ( 38547 ) on Friday November 23, 2018 @08:37PM (#57690812)

    Next you'll be telling me that celebrities doing product endorsements aren't genuinely enthusiastic about the products and are just doing it for money.

    My faith in the purity of ad content is shaken to the core.

    • by Luthair ( 847766 )
      Celebrities also used to do this more subtle endorsement where they'd be paid to use products publicly without running commercials.
      • by rmdingler ( 1955220 ) on Friday November 23, 2018 @09:19PM (#57690934) Journal

        Celebrities also used to do this more subtle endorsement where they'd be paid to use products publicly without running commercials.

        I think we're splitting hairs where we're willing to say a celebrity's compensated public use of a product doesn't classify as commercial; although subtlety is an important component of advertising, since we all think we're too smart to be influenced by advertising.

        Influencers is an interesting tag, and speaking for myself and me only, I've also never quite understood why people who can act in movies are somehow qualified to make important contributions with their opinions that suggest preference for candidates and political positions.

        • Re:The hell you say! (Score:5, Interesting)

          by grep -v '.*' * ( 780312 ) on Saturday November 24, 2018 @03:03AM (#57691674)

          I've also never quite understood why people who can act in movies are somehow qualified to make important contributions with their opinions that suggest preference for candidates and political positions.

          (Frowning.) Really? OK then, let's watch some TV. (Movies are OK but TV have more airtime; movies have more emotional action and excitement.) What's on? Doctor shows, lawyer shows, cops, news, comedies, "Reality" (HA!), and others. Let's take a doctor show. I'd use Doctor Kildare but most of y'all wouldn't know him. Let's take Grey's Anatomy. Confession: I hadn't seen ANY of them. Zero. But I can tell you what some of the shows are about: standard doctor prototypes.

          Doctor fights against unknown disease and cures it, or not and learns a lesson. Doctor fights against differing opinions and is finally proven right. Doctor fights hospital / insurance for dying patient and eventually wins. Caring nurses accidentally provide clues to save patents. And on, and on. Same for cop shows and the rest. Make it interesting, have some personal conflict appear to the main / supporting characters, all that.

          THE POINT BEING: You now have a relationship with the characters on the screen. You like the nice caring ones who buck the system in order to save the day. If they flub their lines they'll redo the take, so they're always "perfect." Sometimes you disagree with their choices, but be assured there won't be many of those times or they wouldn't be loved. But they'll be SOME conflict.

          Now that relationship is *two* sided, both ways. The show keeps coming on and you keep watching it, and watch the characters interact and perhaps grow a little. But not much or you couldn't miss random shows and pick up where you left off. The on-screen characters will never turn YOU off because they can't. It's their JOB to keep you watching and interested; they couldn't turn off your TV if they wanted too. Oh, and those conflicts? Adrenaline to get you excited and aroused. Not like *THAT*, but just a slight hit that you'll want more and come back NEXT WEEK for the adventures of ...

          So you have your favorite characters you like and who "like you" since they keep on speaking to you, telling you about their lives and so on. And then you see "Doctor John" aka Real Life Actor, and your sub-brain says, "That's a friend, a good guy, trying to do the right thing. I better listen to what they're saying." And you do, and maybe you like it or maybe you don't. But you're going to disassociate the news with the person with all of the OTHER information coming in, and eventually just remember someone said something, and "oh yeah that was a smart guy and maybe there's something to that, and I'm smart too so that's probably right" and quit thinking about it because someone's already done the idea-chewing and processing for you, so all you have to do is remember and occasionally regurgitate it.

          If you stop and consider the facts maybe you'll agree or not. But there's initial your starting point, the opposing view(s) now have a larger hill to climb. THAT is how Famous Media Stars influence people -- not when you're actively paying attention, but when you're NOT.

          Psst -- and remember, the actors are just coughing up lines some writer somewhere else wrote. They're not THINKING that at all (well, Method Acting), just hitting marks and cues and talking emotionally when needed.

          Lassie! Calm down, what's up? Little Timmy fell down a well? What, again? I know, let's run to the house and both have a nice steak supper and let him think about the choices he's made recently. And then we'll go to bed and if we remember, go pick him up on the way back from the store so he can help carry things. And if he's not alive, well then that's just More For Us!

          • I grew out of that when I heard Alec Baldwin, the man who plays Trump on SNL, verbally abuse his child. It was taped and you can still find it on YouTube. He really viciously ripped into her. She was 11, I think. It was utterly disgusting and how the man still has a job in entertainment baffles me.
        • they're good an making you believe they're something they're not. It's kind of their thing. It's why we get so many actors in politics (and why they tend to be among the worst). Their job is literally to make you believe something that is not true...
        • Influencers is an interesting tag, and speaking for myself and me only, I've also never quite understood why people who can act in movies are somehow qualified to make important contributions with their opinions that suggest preference for candidates and political positions.

          You're not reading enough Jordan Peterson. What women want (from their male romantic partners) is competence. Women generally favour a particular competence signal: societal attention / societal approval (if the attention signal is large

      • by Anonymous Coward

        For ... 40 years at least, everything you watch is an advertisement.

        TV shows. Every product on that show, is an advertisement. Every single one.

        See a fridge with labeling still on it? Paid. See cereal on the shelves of a character's apartment? Paid.

        If no one pays? You'll see a bag of chips, or cereal with a made up name.

        *Nothing* is free. Everything is paid. Look at Seinfeld, an older show surely, but well known. Recall the snapple episode? The Junior Mints with Kramer and the operation? *PAID*

    • by shess ( 31691 )

      Next you'll be telling me that celebrities doing product endorsements aren't genuinely enthusiastic about the products and are just doing it for money.

      My faith in the purity of ad content is shaken to the core.

      Wait. You mean Catheter Cowboy might not be cathing? That's ... so disturbing!

    • by Anonymous Coward

      And what if the influencers are there to deceive voters during elections? What if the money is foreign even? Or sourced from criminal funds for criminal purposes?

      Someone paid James Edward O'Keefe III, aka Project Veritas to make fake that fake Acorn video and pay off the lawsuits he lost as a result. This is no small amount.

      If you look at FACT, a money laundering front for conservative causes, that's funding everything from fake videos, to astroturfing to "Judicial Crisis Network'... promoting Brett Kavanau

    • That was my thought exactly! Nothing new under the sun.
  • by DaMattster ( 977781 ) on Friday November 23, 2018 @08:39PM (#57690822)
    This sounds like extortion for the digital era. What's left unsaid, but clearly implied, is that if you don't fork over big money to influences, your product will be trashed.
    • by gweihir ( 88907 )

      Also sounds pretty much like a scam. Making the victim afraid is part of that.

    • and that is an rico law issue

    • Seems to me that the recent videos critical of Intel and nVidia are spot on, while both Intel and nVidia would (do?) claim they are hit pieces.

      it will all forever be murky precisely because a hit piece can also be true but that it takes a hit piece to remind/inform the public because the press fucking sucks.
    • It's not that your product will be trashed, usually it will just languish in obscurity for a long time and won't have the "hyper growth" venture backers demand. Don't want to deal with it? Then don't get venture backers, and try to grow organically.

      It is a longer, more difficult path for sure - but it is the path ALMOST EVERY BUSINESS used to have to take before the web existed because television commercials were the only way to reach a national audience, and they were, as a result, very expensive and prett

  • I was under the impression that this is what influencers do all the time?

    • by gweihir ( 88907 )

      Some have standards, but as usual most do not and will do anything for money. All the more well known certainly will do most things if the pay is right.

  • by 93 Escort Wagon ( 326346 ) on Friday November 23, 2018 @09:28PM (#57690970)

    I am sitting here on my amazingly comfortable B&B Italia sofa, casually reading Slashdot while I enjoy a delicious Jimmy Johns sandwich with a Diet Cherry Pepsi. But I have to say - I simply can’t believe anyone would behave this unethically. From the tip of my Stetson hat to the heels of my Doc Martin shoes, I am 100% convinced that people, left to their own devices, will only recommend products they use and love.

    - Typed on my 12.9” iPad Pro

    • by gweihir ( 88907 )

      "Diet Cherry Pepsi"? Urgh. At least have some minimal standards!

      • Wow. Not sure what your problem with Pepsi is. I absolutely LOVE all their...

        Wait, just got an important email, I’ll finish my thought in a moment. Oh wow, they’ve offered THAT much huh?

        Like I was saying - Ginger Lime Diet Coke is to DIE for! I guzzle this stuff by the gallon... I simply cannot get enough of those delicious Coka-Cola products!!

        • ...Like I was saying - Ginger Lime Diet Coke is to DIE for! I guzzle this stuff by the gallon... I simply cannot get enough of those delicious Coka-Cola products!!

          What a super-great personal tribute and totally non-commercial testimonial. I've got to try some of that. Lately I've been guzzling the Grande Curried Squirrel Brain Machiatto at Starbucks with their Haggis & Honey scones.

    • I'd be especially good at the part about trashing bad products. Only problem is I'd probably forget and trash my sponsor's products, too.

      Oh, wait. First I'd have to get to the influencer point where more than a few trolls are interested in my babblings.

    • Doc Martin [wikipedia.org] shoes are very different from Doc Martens. Both are British, but one of these are fictional.

    • I am sitting here on my amazingly comfortable B&B Italia sofa,... while I enjoy a delicious Jimmy Johns sandwich with a Diet Cherry Pepsi.

      Excellent! Meanwhile I am typing on a pre-used PC sitting on a chair I bought years ago from a shop near London, drinking a glass of tap water and eating a sandwich I made myself. Email me if you want details of how to acquire this stuff for yourself.

  • by Anonymous Coward

    They promoted Beto and he was a know nothing with a drunk driving record. And illiterates who spend most of their time on YouTube and instagram voted for him. He will be presidential material for the undereducated class.

    • by gweihir ( 88907 )

      I doubt it has much to do with education. People are just generally stupid and still have a tribal mind-set.

    • by Anonymous Coward
      Use his real name: Robert Francis O'Rourke, son of Patrick Francis O'Rourke and Melissa Martha Williams, husband of Amy Hoover Sanders. Elizabeth Warren has more Native American in her than Bobby O'Rourke has Hispanic.
  • by SuperKendall ( 25149 ) on Friday November 23, 2018 @11:19PM (#57691232)

    She was told to expect to shell out $50,000 to $70,000 per influencer just to make her company's name known, an insane amount for a new startup. There was no way around it

    At that kind of rate, knowing you would need at least a few "influencers", what I would do instead is build up my own cadre on influencers - find some kids just starting out YouTube with some makeup sense and make them offers for recording gear and a lot of makeup and vastly less cash.

    The idea that you need to pay a series of influencers $80k each comes off as really seeming like a scam. Sure at the top level the elite of YouTube are truly influencers - but at the mid tier where you would pay $80k? I don't think so.

    Read this great summary of someone that tried to use middle-tier YouTube celebs to drive sales [candyjapan.com]. It did not work at all. Granted it was a different field but the approach seemed sound given the assumption that YouTube videos really influence people.

    • that was a great link. thank you

    • She was told to expect to shell out $50,000 to $70,000 per influencer just to make her company's name known, an insane amount for a new startup. There was no way around it

      At that kind of rate, knowing you would need at least a few "influencers", what I would do instead is build up my own cadre on influencers - find some kids just starting out YouTube with some makeup sense and make them offers for recording gear and a lot of makeup and vastly less cash.

      The idea that you need to pay a series of influencers $80k each comes off as really seeming like a scam. Sure at the top level the elite of YouTube are truly influencers - but at the mid tier where you would pay $80k? I don't think so.

      Let me clarify how this works from the investor standpoint.

      Buy a top-tier influencer = Get top-tier results.

      Buy a Kardashian = Get Kardashian results.

      Buy "some kids just starting out on YouTube" = Get...amateur results. At best.

      You really think investors have time to be waiting around for some unknown Narcissist with A Dream to strike it lucky playing the YouTube lottery in order to get a product off the ground, trying to target a consumer attention span that's shorter than a squirrel on crack?

      I don't th

    • Interesting article! In reading through it, however, I can't help but wonder what might have happened had he had aimed a bit higher, such as 10K-100K subscribers, rather than 1K-10K?

      I actually co-host a Let's Play [wikipedia.org] channel that has about 2.1K subscribers and 1.1 million views, so we'd seemingly be exactly the sort of channel this seller might have targeted. But our channel is nothing more than a fun excuse a few college friends use to keep in touch after we moved apart. Even if we were inclined to respond to

      • Those are all really interesting points, I was not too familiar with the YouTube monetary ecosystem myself as I've never tried to sell or even offer videos there - to me it did seem odd he got absolutely no results from the effort, maybe like you say targeting a level above with more serious players would have had better results.

        I honestly thought targeting cosplayers (or more realistically cosplay watchers) was a great idea, I would have thought even just the stylistic aspect would have meshed well with c

        • In terms of monetization, the helpful rule of thumb I heard several years ago was that it takes about 1 million views per month to make a comfortable living on YouTube. That number may no longer be accurate, but once you recognize that it's likely still something on that order of magnitude, you start to realize just how many people on YouTube are nothing more than hobbyists or part-timers. An entry level full-timer working 40 hours per week would need to be skilled enough to match our channel's monthly outp

  • ...Lotti recalls the investor saying that if she wanted Lashify to succeed, quality didn't matter, nor did customer satisfaction -- only influencers. And they didn't come cheap. She was told to expect to shell out $50,000 to $70,000 per influencer just to make her company's name known, an insane amount for a new startup. There was no way around it; that's just how things worked.

    Welcome to the gig economy. By day, Lyft driver. By night, paid shill for Infowars, Walmart and Monsanto.

  • by Mandrel ( 765308 ) on Saturday November 24, 2018 @04:39AM (#57691848)
    'Money is truth, truth money' - that is all ye know on earth, and all ye need to know.
  • by sdinfoserv ( 1793266 ) on Saturday November 24, 2018 @03:38PM (#57693576)
    Time to stop calling them "influencers" and call them what they really are, pitch whores.

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