A new way to advertise

Haggerty Cole

As technology and society advance so does the way people sell and get their product

noticed. Social media and social networks have created a new marketplace for

companies and or entrepreneurs to display their product to an enormous amount of

people with minimal work. The most popular place to do so is youtube. Youtube has

created new ways for people to create a brand or to help other companies advertise

theirs. These people who vary in age but the majority of them are 18-26 years old are

called influencers. They create videos about whatever they want and in these videos

either have a company sponsor their videos and or the new thing they are doing is

creating their own brand and displaying either at the beginning, throughout, or at the

end of their videos.

Schmidt, Samantha. "6-year-old made $11 million in one year reviewing toys on

YouTube." Washington Post 11 Dec. 2017. Business Insights: Essentials. Web. 2 Mar.

2020. Samantha explains how children stars have changed from being in movies to

being famous on youtube. She focuses on one famous six year old, Ryan from Ryan's

ToyReview, who is one of the top earners from youtube. He is just a kid who reviews

new toys for other kids and from the time Forbes magazine started tracking his income

he had 8 billion views on his page. Each time someone clicks on his video Ryan makes

money per view, but the real income is the links and ads he adds into his content.

Samantha goes on to say it's unclear which toys are given to him buy sponsors and

which ones he just buys to review, however if he puts out a video on a specific toy and
gets 3 million likes on his video it has a impact on how well the toy sells. She doesn't

say it's solely on him but when you get 5 to 30 million views and likes there is some

correspondence to the product selling. Samantha is trying to show the difference society

is with advertising where before kids were watching their favorite kid stars on TVs and

commercials is where companies would invest most their money but now kids aren't

watching tv like they used to but instead watch youtube and how it's easier for

companies to promote their product because of the fact that it's for the most part reality

and kids can virtually put themselves in these kids lives like Ryan.

"YouTube advertising is a $15 billion business, Google parent discloses for the

first time." CNN Wire, 3 Feb. 2020. This article by Clare Duffey from CNN business

explains how youtube's advertising profits have gone up exponentially over the past few

years. Duffy shows how in 2019 youtube reached 15 billion for advertising and shows

from 2017 it has increased 86% and in 2018 has increased 36%. Those numbers are a

huge increase for just youtube advertising products and services through their creators

content. The numbers also predict that it could increase at a higher rate than before and

could reach 46.9 billion very soon. These statistical facts show how advertising has

made a change from mostly being seen on TV through commercials to now have

millions of normal people being able to advertise a product in real life situations and

scenarios that we haven't really seen before.

Lieber, Chavie. “How to Make $100,000 per Instagram Post, According to an Agent for

Social Media Stars.” Vox, Vox, 28 Nov. 2018 . This article on vox by Chavie Lieber goes

into starts with a study from Traackr and explains how 72% of major companies are investing

serious money into advertising through influencers, because of the fact that influencers have a
strong relationship with an audience who can heavily sway decisions like purchasing

habits. Fashion bloggers and gym instructors, they believe, are the next step in

advertising. They connect with people more deeply than a page in a magazine and can

therefore sway potential customers. Chavie relates these influencers to any famous

person but specifically Lebron. If kids grow up idolizing Lebron you're going to usually

buy what he puts out or do the things that you see him do and that's why major

clothing,athletic,and health companies sign him to these deals because they know

whatever he says he likes his group of followers will buy and that's exactly what

influencers are doing.

Council, Young Entrepreneur. “Understanding Influencer Marketing And Why It Is So

Effective.” Forbes, Forbes Magazine, 30 July 2018. Joel Mathew explains that advertising

through influencers has been around but has really become important for companies in the past

few years. Before technological advancements, scheduled television was virtually the

only mass media consumers had access to and was one of the main platforms marketers

used to advertise to people. However with the creation of social media such as youtube

people can get unlimited freedom of choice of what they want to view which makes it

hard for companies to target a certain audience.Thats where influencers come in to be

able to target certain types of viewers for their product. By allowing influencers to

advertise your product you gain the trust and respect from the viewers because if they

are a follower of that certain content creator they have already built that trust with their

viewer.

Newman, Daniel. “Love It Or Hate It: Influencer Marketing Works.” Forbes,

ForbesMagazine, 24 Aug. 2016, Daniel Newton in 2016 wrote about how influencers were a hot

new thing to get your product to viewers. This was before becoming an influencer and
advertising through social media really took off, but describes influencers as well-informed

and knowledgeable people. That’s really why audiences value influencers, both micro

and macro depending on the business, product, industry, etc. The ability to choose what

you watch rather than wait for a scheduled timed show on Tv has really changed the way

people view products and services. If you are a person looking for a good gym, you are

going to go to a fitness youtuber and see what their opinions are about it. That's just how

society works now, which you couldn't have done just by watching Tv. Newton then

describes seven studies that were done based off of influencers: Influencer marketing is

the fastest growing and most cost-effective channel,Ninety-two percent of consumers

turn to people they know for referrals above any other source,Word of mouth generates

2 times the sales of paid advertising, and Businesses make $6.50 for every dollar

invested in influencer marketing. Remember this back in 2016 since then advertising

through youtube has increased 80 to 90 percent.

These sources show how the creation of social media but more specifically

Youtube has created this huge platform for people to get a real life vision of certain

products. It has changed from where you see something on Tv through commercials to

now people of all ages can represent a brand that wants to sponsor them or even their

own brand through the content of their videos. Major corporations have seen that

people are more connected and trust influencers than some random actor in a

commercial. By having that key component of trust between the creator and viewer

companies can either sell more of their product and or retain the current buyer based on

the voice of a person. Influencers have been around for a while. It's just changing from

famous celebrities like Lebron James to a more relatable type of person.