The State of Social Media Sponsorship Report

My friends over at IZEA has just released its first report on The State of Social Media Sponsorship for the second quarter of 2010. The report was compiled from survey data of over 2,800 social media publishers, consultants, marketers and public relations professionals who volunteered to participate. It uncovers the impact sponsorships have on engagement, compensation practices, publisher preferences, and earnings.

The survey defined Social Media Sponsorship (SMS) as the practice of providing compensation to a social media publisher in exchange for mention, promotion or review through a publisher’s social media channels. Compensation may be in the form of cash, free product or service, experiences, discounts, coupons or other brides.

Key Findings

  • 88.3 percent of social media publishers monetize social media in some way
  • 87.4 percent of social media publishers have or would create sponsored content
  • The average social media publisher spends $711 per year on hosting, education, conferences and related social media costs
  • Twitter users earn 298 percent more in SMS for their blog than non-twitter users

“The growth of the SMS industry is astounding,” said Ted Murphy, CEO and founder of IZEA. “According to PQ Media, social media sponsorships are positioned to grow from $46 million in 2009 to over $160 million in 2014, this explosive growth presents significant opportunities for publishers to monetize their social media channels.”

With social media enabling every consumer to become a publisher, advertiser demand is clearly increasing. Brands of all sizes recognize the value of building relationships with social media publishers. This is validated by the majority of publishers (71.3 percent), who stated that they have been approached by someone offering cash, free products, discounts or other compensation in exchange for a blog post, tweet or other social media promotion.

While the report underscores the growth in SMS, it also highlights areas of concern. Survey data determined that 35 percent of public relations, social media and marketing professionals are not aware of the FTC guidelines on endorsement announced in late 2009. Only 29 percent of these professionals indicated that they read and understood the guidelines, meaning that the majority are unclear as to the best practices.

“Our space is maturing and becoming more sophisticated;” said Murphy, “however, we clearly need better education among both advertisers and publishers. In order for this space to gain widespread acceptance, everyone needs to play by the same legal rules and ethical guidelines.”

You can grab your copy of the The State of Social Media Sponsorship at IZEA’s website. It’s free.

35 thoughts on “The State of Social Media Sponsorship Report”

  1. You are an expert to this John. Social media is very important now especially if you have businesses. People can benefit to it with less hassle.

    1. Yes, John is the expert. Who else can get $100 (or whatever that huge number is) per tweet using IZEA’s Sponsored Tweets?

      1. Yes, John is an expert and we could become one too. We just need to be the first to promote with the best strategy and we will be able to become one like him. (But well it will need to include hard work)

      2. Alex Dumitru says:

        I don’t believe he’s the only one who gets $100 per tweet 🙂

      3. ibnujusup says:

        i only get a little amount of money by sponsored tweets… 🙁

    2. Using social media is an excellent way to brand yourself and it’s an excellent method of promoting your products and services. John knows the internet inside and out now and I’m sure using social media to gain more will be his next venture.

      1. d3so says:

        Social media definitely helps. I get a good amount of traffic from facebook & Twitter.

    3. Alex Dumitru says:

      Social media is great for literally everyone

      1. D3so,

        What percentage of your traffic roughly do you get from twitter and FB? I meant separately.

  2. Baker says:

    Astounding info here! Great motivation to keep on keeping on. This is the future

  3. Dan Lew says:

    I really like Izea’s business model, I am using a couple of their platforms.

    1. PPC Ian says:

      I experimented with IZEA’s Sponsored Tweets platform a few months ago. I agree that IZEA is doing some great stuff!

      1. d3so says:

        You experimented as an advertiser or a tweeter?
        I’m making dollars per tweet but have yet to advertise.
        I used payperpost awhile back and made some good pocket money from it.

        1. ibnujusup says:

          me too… but i only succeded in the PPP but not sponsored tweets… there was this one time, i only got 0.01 cent for one tweet…lol..

      2. Alex Dumitru says:

        I’ve had next to no success with Sponsored Tweets, but I also don’t want to stress my followers 🙂

  4. Increase from 46m in 2009 to 160m in 2014 would means more opportunities as well as competitions. With this lots of opportunities we are able to get more money online but first we need to learn how we could win the competition.

  5. Dynamaxx says:

    The Twitter stat just blew me away.
    Nice post John.

  6. Kate Kutny says:

    Incredible information about Social Media John 🙂 Your articles always seem to amaze me. Well written with details. That is so amazing that Social Media is going to grow so much and so fast.

  7. Whenever you have a social media company money is bound to be made because you have so much control. I mean look at MySpace, Newscorp bought it for nearly half a billion dollars. Social Media is the next gold rush now.

  8. John, thank you for sharing this. IZEA is an amazing company and Ted Murphy is a cool guy, even when he sits in his bathtub full of baked beans! Downloading the report now,
    Respectfully, Nicholas Chase – future super affiliate

    1. d3so says:

      Yeah, I’ve kept my eye on IZEA ever since using payperpost. They’ve really grown these past years.

      1. ibnujusup says:

        baked beans.. are you serious nicholas?? that is very weird… but sometime people said, weird people always be successful…. 🙂

  9. Recky Nunez says:

    Very interesting facts John. Thanks

  10. PPC Ian says:

    Great post! I’m a big fan of numbers so the statistics in this post are quite motivating!

    1. d3so says:

      Yeah, numbers are huge motivators. Not to mention they add to the legitamacy of the report.

      1. ibnujusup says:

        what about 138 388 17….. i can’t sleep thinking the potential of blogging world.. 🙂

    2. Alex Dumitru says:

      I’m also glad to see Social Media has such a high impact 🙂

  11. Melvin says:

    Interesting. I thought the social media sponsorship industry is drying up but it was actually the contrary.

  12. Thanks for the report John very interesting stuff.

  13. Just download the SMS report even (lzea send it few hours after i register. I guess they are screening the readers). It was an interesting report. Well if you read it you can see on page 23 the report telling us the most profitable category. If I not wrong it might refer to the most profitable niche itself.

    1. ibnujusup says:

      thanks for the sharing shally… 🙂 free niche..

  14. fas says:

    Now that is something companies need to read.

  15. Simon Bunker says:

    JUst downloaded the report should make for interesing reading. Thanks for sharing this

  16. Boy those facts are really eye opening.

  17. the practice of providing compensation to a social media publisher in exchange for mention, promotion or review through a publisher’s social media channels. For more details you can visit the website softwaredevelopmentoutsourcing(dot)org and services-outsourcing(dot)org

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