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Those Celebrity Tweets Could Be Ads

Charlie Sheen
Source: NBC
Charlie Sheen

Troubled sitcom actor Charlie Sheenstands to earn $1 million this year endorsing products on such social media sites as Twitter, Arnie Gullov-Singh, CEO of Ad.ly, a website that links celebrities with companies and brands online, told CNBC Monday.

“The celebrities get paid a flat fee per tweet for a status update, and it’s based on three things,” explained Gullov-Singh.

Those include the number of fans or followers they have on Twitter, how engaged those fans are with the celebrity’s content, and the celebrity’s past performance of those endorsements and the result they delivered for the brands.

The CEO said that the company has some 1,000 celebrities, including Kim Kardashian, Mark Cuban and Snoop Dogg, in its stable.

Some of its 150 advertisers are Toyota, Sony , Microsoft , At&T and Best Buy .

According to Ad.ly's website, it "syndicates celebrity endorsements in the form of in-stream, display and rich media ad units across Facebook, Twitter, MySpace and more."

Ad.ly helped Sheen open up his Twitter account and taught him how to engage fans. Gullov-Singh said that Ad.ly plans to hook the actor up with companies that are willing to pay him handsomely for endorsements.

“As soon as he [Sheen] joined Twitter, and the media got wind that we were part of that process, our phone were flooded with inquiries from advertisers,” said Gullov-Singh. “Many of them small guys looking to have their 'GoDaddy' [GoDaddy.com] moment.”

To help users understand that the tweets are paid endorsements, Gullov-Singh said, the hashtags have the words ad, promoted or endorsed in them.

Any way you slice it, though, for celebrities, it’s nice work if you can get it.

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