Marketers to Spend More on Social Media Sponsorship

While many marketers are spending more on social media via display ads, there are other ways to increase visibility in this sector of the online universe. Marketers might opt to create their own social media destination or they may participate in social media sponsorship (SMS), the practice of paying a site such as a blog to be mentioned. SMS is growing.  and payment types range from cash to products and services to coupons and discounts.

The results of the 2011 SMS Survey show that the average annual income (cash and non-​cash) from SMS for a typical blog, by selected category, rose to the following levels this year:

  •  Men’s Lifestyle: $4,551
  • Family/​Parenting: $3,2011
  • Marketing: $3,101
  • Technology: $2,725

The typical blog generates rather modest traffic. About 26% of surveyed bloggers say they are getting up to 1,000 page views a month. Another 23.2% claim their traffic runs between 1,000 and 5,000 page views a month.

When it comes to SMS compensation,  cash is king for 75% of bloggers.  However, only 44% of marketers prefer to pay cash. Marketers also say they prefer to give out free products (46.1%), discounts/​coupons (37.2%) or to not compensate (26.5%). Marketers indicate the following compensation values are fair:

  • Sponsored Blog Post: $114.71
  • Sponsored Video: $112.46
  • Sponsored Photo: $54.58
  • Sponsored Checkin: $40.15
  • Facebook Like: $45.63

Marketers are also paying for Sponsored Tweets and believe the right price is $63. On the other hand, publishers feel the value of a Sponsored Tweet is more like $147. When marketers consider where to place their SMS investment, they evaluate a site for its content quality, industry relevance, comments/​engagement, traffic and personality of publisher. Variation in these factors accounts for variation in payment amounts.

Ted Murphy, CEO of IZEA, the company published the report, notes that "Social media sponsorship is a very targeted and personal way for advertisers to reach the right audience and for publishers to earn money from their blogs or Twitter accounts." For some marketers, this route may prove to be a very effective way to connect with a narrow consumer base .

[Source: State of SMS. Izea​.com. June 2011. Web. 17 Aug. 2011] 
Kathy Crosett
Kathy is the Vice President of Research for SalesFuel. She holds a Masters in Business Administration from the University of Vermont and oversees a staff of researchers, writers and content providers for SalesFuel. Previously, she was co-​owner of several small businesses in the health care services sector.