### Marketing Research: Calculating Marketing ROI from Celebrity Tweets

I knew that clubs and restaurants would pay celebrities to make an appearance, but I didn't know that celebrities got paid for tweeting about products.

This morning, I learned otherwise.  Merrill Dubrow, CEO of  M/A/R/C Research tells the story in his very enlightening and entertaining blog: The Merrill Dubrow Blog.

Companies pay celebrities to tweet about their products.  Are you kidding me?!  What are they thinking??  OK, if they make a commercial or show up at a trade show - that makes sense.  But a tweet?  That's 140 characters!

And this is not chump change we're talking about.  (Well, actually, for celebrities, this probably is chump change.) Merrill reports the following tweet-rates:

• Lindsay Lohan: \$2,353 per tweet
• JWOW: \$2,353 per tweet
• Mike Tyson \$3,250 per tweet
• Jose Conseco \$3,900 per tweet
• Khloe Kardashian \$8,235 per tweet

So, assuming Khloe Kardashian uses all 140 characters in her tweet, that's just under \$59 per character!  And in the case of a recent tweet (again reported by Merrill), "OMG… Wheat Thins has a new limited time sweet cinnamon flavor…. Why am I so excited about this?  LOL" - she only used 100 characters, making the per character cost a little over \$82!

Now, I am not a Kardashian fan and I really can't think of any celebrities that I have enough regard for that could influence my purchase decisions.  But can this really be effective marketing?

Merrill gives another perspective: calculating the ROI of the tweet.  Given that Ms Kardashian has 5 million followers (yes, that number IS correct!), here is Merrill's ROI calculation:

"If 1% [of her 5 million followers] take action because of Khloe’s tweet that would be 50,000 people. If you don’t like that number (which might be too high) let's use 10% of that number, which would be 5,000 or .0001% of the original number (which might be more likely) and multiply the 5,000 people who buy the product (call it body lotion) for \$25.00 generates \$125,000 in revenue.

So the tweet cost you \$8,235 and generated \$125,000 – who wouldn’t take that ROI?"

So the ROI on that tweet-investment was 1500%??  I am seriously in the wrong business....

What do you think?  Would you personally be influenced by a celebrity tweet?  Do you think enough people would be to make this ROI calculation reasonable?