Archive for May, 2010

A Tale of $10,000 Tweets

By Sally Saville Hodge

Despite being a faithful (if abashed) reader of celebrity publications like People magazine, I somehow missed the hubbub over one of my favorite pseudo celebrities (not): Kim Kardashian.

Kim, of course, is emblematic of a new phenomenon with the American public: The elevation to star status of people who have absolutely no discernible talent or skills, but have been smart enough to hire effective publicists. (See Paris Hilton and Nicole Richie.)

She does have one thing going for her, however. She Twitters. Over 3 million people actually follow her tweets. That apparently gives her some degree of influence over the masses. And so, in a new twist on a time-honored marketing ploy, Kim is now in hot demand as a celebrity endorser via Twitter.

It’s called “sponsored Tweets,” a gentler term than advertising and presumably one that resonates more positively in an environment where authenticity supposedly rules.

Kim is at the top of this particular heap and reportedly rakes in a cool $10,000 per tweet. She’s not the only “publisher” to do so – just for lesser amounts. Dr. Drew is a big draw and so is Lindsay Lohan and her ex, Samantha Ronson. Even business groups with a big following – the CBOE and Stock Futures Forecast – are registered as being available via the leading matchmaking platform, Ad.ly.

The whole business raises a lot of issues relative to transparency and authenticity, the ultimate barometers of successful social media interactions. Ad.ly claims that the endorsed tweets it brokers are identified through the “#advertising” disclaimer at the end of each post.

But a growing number of concerns are entering the fray and may not be so principled. And unfortunately, while the Federal Trade Commission issued guidelines on celebrity (and other) blog endorsements last year, requiring full disclosure, it somehow left the Twitter issue to fall between the cracks.

Ultimately, the $64,000 question is whether a Twitter post by Kim or Dr. Drew or even the CBOE is going to pay off with new business. At least one expert says, “Not so much.” At last month’s Ad Age Digital Media Conference, Yahoo’s principal research scientist Duncan Watts told the audience: “If I had a fixed budget, I could get more value from a small amount of very influential [influencers], or a lot of smaller influencers, on Twitter. If you recruit enough people who, on average, influence just one other person, you could get a much better return on investment if you aggregated them and altogether paid them a tenth of what Kardashian gets.”

I’d settle! And to that end I’ll need to build up my followers. Follow me at @sallyshodge so I can give Kim a run for her money.

May 14, 2010 at 4:50 pm Leave a comment


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