Influencer Marketing : 101

Written by Aline Toretto, Nizam Uddin, and Tai Xiaoyan, students in Jon Harari’s class.  Edited by Jon Harari.

Daniel Saynt, CEO and Founder of Socialyte, provided an overview of the current landscape of today’s influencers, and how today’s digital social media engagement is changing extremely fast. Big brands like Lord and Taylor, Louis Vuitton, Prada, Macy’s, and others are constantly updating their marketing strategies to keep up with millennials as new methods evolve of engagement. Mr. Saynt was able provide a great overview for our Reputation Management Class on November 16, 2015 at Baruch College.

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The explosion of social media has caused a tremendous amount of complexity and cost to brands trying to figure out how to best reach their audiences. Although there is a tremendous amount of budget allocated to advertising, there hasn’t been a scientific method of determining ROI; the art of advertising was too obscure.

Socialyte helped solve this problem using technology, effectively bringing in science to support the art of advertising. Mr. Saynt and his team merged the creative methods of understanding the industry against new methods of technology to create a platform that is re-inventing how brands reach their target audiences, whether its to get audiences excited about a new purse, a pair of jeans, or new phone, in a similar method to the one Nike used with Michael Jordan to sell sneakers, and make it the multi billion dollar brands it is today.

Their service offering of “Instabombing” is revolutionary, and they have recruited key influencers and signed some of them similar to how an agent will sign an athlete. After signing or contracting a popular influencer, they will use their thousands or millions of followers to promote a product reaching their followers. It’s not one Influencer that is contracted, rather 10 or 50 to get maximum market penetration and to build an excitement to motivate people to buy. Calvin Klein ran a campaign as the most successful influencer campaign and garnering 2.5 billion media impressions, which actually caused them to have to take the site down due to out of inventory issues. With the success of Influencer Marketing, Socialyte has expanded into casting, media negotiations, and working as a talent agency. Their platform has given them the ability to track sales down to the end user which provides the holy grail of advertising to the client which is to be able to know what advertising spend drove revenue.

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The shift of advertising spending is now over 70% to Influencer Marketing versus the traditional ad, print and media methods. Millennials previously being an impenetrable market has blossomed due to Influencer influence of their followers of the new media channels that are cost effective and direct. Welcome to the new world of marketing, and Socialyte is showing companies how.

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