Down to Business English: "Social Media Influencers"

Hosts: Skip Montreux, Samantha Vega
Date: December 30, 2020

Episode Overview

This episode delves into the business of social media influencers—defining who they are, how they operate, and their growing role in modern marketing. Skip and Samantha analyze the distinct influencer categories, the effectiveness of influencer marketing, the evolution of the industry, and the rise of virtual influencers, all while introducing key business English vocabulary.

Key Discussion Points & Insights

Opening & Context: The Social Dilemma (00:14–01:54)

• Skip opens by referencing the Netflix documentary The Social Dilemma, sparking a brief discussion about social media's unintended consequences.

• Samantha shares how the documentary motivated some people to delete their social accounts.

• Takeaway: Social media platforms, originally intended to foster engagement, have led to behavioral changes and division, not just commercialism.

  “The original intent of social media engineers was to create engagement between users. But the algorithms and tools they came up with to do that, to create that engagement, have a more insidious side effect.” - Skip (01:33)

What is a Social Media Influencer? (02:22–04:35)

• Definition: Someone with a substantial online following who influences purchasing decisions through their content.

• Samantha’s Example: Cites Kylie Jenner, noting her billionaire status thanks to her online presence.

• Categories:

  • Mega Influencer: Became famous offline, possess over 1 million followers.

  “Someone who typically became famous offline...and they have more than a million followers on at least one social media platform.” – Skip (03:32)

Influencer Marketing vs. Traditional Advertising (04:35–05:14)

• Targeted Engagement: Influencer marketing is more personal and specific; influencers start with their audience’s trust.

• Brand Value: The opt-in nature of following an influencer boosts credibility and marketing efficiency.

  “There is much more engagement between the influencer and their audience through a social media channel such as Instagram...The fact that the audience has chosen to follow the influencer is very powerful.” – Skip (04:08)

Influencer Tiers & Earnings (05:14–07:40)

• Influencer Tiers:

  • Macro Influencers: 40,000–1M followers
  • Micro Influencers: 1,000–40,000 followers
  • Nano Influencers: Under 1,000 followers

• Earning Power:

  • Mega influencers, like Kylie Jenner, can earn $1M+ per post.
  • Micro-influencers with 50–100k followers can command $3,000 per post (07:17)
  • Even nano-influencers can earn $30,000–$60,000/year.

  “According to mike.com...the average influencer can take home anywhere from 30,000 to US$100,000 a year.” – Skip (06:56)

Evolution of the Industy: Past vs. Present (07:40–10:23)

• Early Days: Samantha recalls small-time influencers trading posts for perks; this was often seen as "fishy" and untrackable.

• Modern Day: The industry is now professionalized, with agencies connecting influencers and brands.

  “A plethora of agencies who focus on pairing influencers with brands have sprung up.” – Skip (09:40)

Influence Marketing’s Growth & Impact (08:36–09:08)

• Rapid Expansion: 72% of major brands are allocating larger budgets to influencer marketing.

• Projection: By 2022, $15 billion could be spent on influencer marketing.

  “Experts are forecasting that in 2022, as much as $15 billion may be spent on Influence marketing.” – Skip (08:54)

The Rise of Virtual Influencers (10:41–11:52)

• Emergence: Now over 100 virtual influencers, 80 created in the past year.

• Top Example: Lil Miquela, a CGI character, landed deals with Prada and Calvin Klein, earning $12 million in a year.

  “The most successful VI is a quote unquote model by the name of Lil Miquela...has made $12 million this year alone.” – Skip (11:01)

  “Do these virtual influencers pose a real threat to human influencers?” – Samantha (11:41)
  “Not at this moment, but the possibility is there.” – Skip (11:48)

Notable Quotes & Moments

• On the Authority of Influencers:

  "An influencer's value is tied very closely to their authority with their followers." – Skip (05:57)

• On Changing Advertising:

  "This entire industry is a good example of how technology has yet once again disrupted a traditional business model." – Samantha (10:23)

• On Salaries and Suspicion:

  “...a couple of weeks ago I received an email from a headhunter...paid over 15 million yen a year....But something about that email seemed fishy.” – Skip (17:45)

Vocabulary Highlights (12:35–18:39)

To go off the rails (12:35)

• Meaning: To act strangely or differently than expected.
• Example: Social media’s development described as “off the rails” (12:54).

Takeaway (13:38)

• Meaning: A key lesson or main point learned from experience.
• Example: “The big takeaway was learning how social media is changing the way we all behave.” – Skip (14:01)

Insidious (14:38)

• Meaning: Seemingly harmless but actually dangerous.
• Example: “These side effects might not look or feel dangerous, but in fact they are very dangerous.” – Skip (15:12)

Run of the mill (15:41)

• Meaning: Ordinary, nothing special.
• Example: Influencer marketing as “run of the mill commercial endorsement.” – Samantha (16:10)

Fishy (16:44)

• Meaning: Suspicious, untrustworthy.
• Example: Doubting the legitimacy of influencer-brand deals in early social media days.

Segment Timestamps

• 00:14 – 01:54: The Social Dilemma and social media’s unintended consequences
• 02:22 – 04:35: Defining social media influencers and mega-influencers
• 05:14 – 07:40: Tiered structure of influencers and their earnings
• 07:57 – 10:23: Industry evolution & agencies’ rise
• 10:41 – 11:52: Virtual influencers’ emergence and future impact
• 12:35 – 18:39: Business English vocabulary explained with examples

Conclusion

Skip and Samantha present a compelling, accessible overview of the influencer marketing ecosystem—its structure, financial potential, and technological evolution. They reinforce the importance of credibility and trust in influencer marketing, while sharing practical English vocabulary in business settings. The conversation closes with light-hearted holiday well-wishes and a reminder to stay sharp in the world of business English.