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- Influence Weekly #337 - A Bold Travel Marketing Move: Sending Influencers With 20 Million Followers On A Trip They Couldn’t Share
Influence Weekly #337 - A Bold Travel Marketing Move: Sending Influencers With 20 Million Followers On A Trip They Couldn’t Share
How Creator Economy Startup Jellysmack Lost Its Way
Nii Ahene
May 17, 2024
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Spotlight Stories
8 TikTok Stars Take On The U.S. Government In First Amendment Battle Royale
A Bold Travel Marketing Move: Sending Influencers With 20 Million Followers On A Trip They Couldn’t Share
This Startup Is Using AI To Overthrow Old-School Athlete Marketing
How Creator Economy Startup Jellysmack Lost Its Way
Great Reads
Eight popular TikTok creators have filed a lawsuit challenging the federal law that would ban the app in the U.S. unless its Chinese parent ByteDance sells its stake within a year. The creators, including an e-commerce entrepreneur, advocates, and community builders with millions of followers, argue the law violates their First Amendment free speech rights.
This follows a separate lawsuit by TikTok itself making similar constitutional claims. Both cases seek court orders blocking enforcement by the Justice Department, which cites national security concerns over TikTok's China ties.
However, ByteDance says fully divesting the U.S. TikTok business would be impossible since its technology is globally integrated. It also claims China would block sale of TikTok's prized recommendation algorithm.
The dueling lawsuits pit creators' free expression rights against alleged China data risks, setting up a major legal battle over the future of a platform powering the modern creator economy.
Deloitte has released a report highlighting the growing significance of the creator economy, valued at $250 billion and expected to double in size over the next five years. The report, "Creator Economy in 3D," reveals that 60% of surveyed consumers are more likely to engage positively with or purchase from a brand recommended by a creator they follow. Factors contributing to this consumer-creator bond include relatability and passionate followings.
Deloitte's research emphasizes the importance of brands collaborating with creators through partnerships that grant creative freedom, offer fair compensation, and provide long-term support. The report found that top-performing brand-creator partnerships tend to have multiple creators, prioritize creators with mid-range follower counts, and allocate a significant portion of their social media budget to creator initiatives.
London-based Superfy, a social networking app targeting Gen Z users, has secured $2.2 million in funding to propel its growth. This round brings Superfy's total funding to $6.7 million. Founded in 2021, Superfy offers a chat-based platform allowing users to initiate conversations on any topic, engaging in one-on-one or group chats. The startup has gained over 500,000 registered users, mostly aged 18-21, across the US, UK, and Canada.
The introduction of "Super Groups" has boosted daily user time to 40 minutes, with monthly messages doubling to 20 million. Co-founder and CEO Michal Tamir emphasizes Superfy's focus on genuine connections and belonging, contrasting it with traditional social platforms centered on likes and follows. As Gen Z seeks authenticity, Superfy is building vibrant digital communities.
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Campaign Insights
The U.S. dairy industry has launched an aggressive marketing blitz to increase demand for its products, from the viral "butter boards" trend to McDonalds' Grimace milkshake. This is driven by Dairy Management Inc. and other USDA-overseen "checkoff" programs funded by mandatory fees paid by dairy farmers and processors, totaling over $200 million annually.
These groups have paid celebrities and top influencers like MrBeast to promote dairy products on social media. They partner with major restaurants to incorporate more dairy into menu items like Taco Bell's Mountain Dew dairy drink. While increasing dairy consumption, these campaigns have also grown the industry's environmental footprint from emissions.
Some small dairy farmers criticize the checkoffs for unfairly benefiting large producers by focusing solely on demand growth rather than supply management. Farm groups are pushing for a Canadian-style production quota system to stabilize milk prices, though prospects are uncertain. Meanwhile, the checkoff groups are expanding marketing of cheese-loaded items like pizza to overseas markets in Asia.
Contiki, a social tour company, has partnered with We Are Social Australia to launch an unconventional influencer marketing campaign. The "Switch On Social Travel" initiative takes 17 influencers with 20 million followers on a trip through Portugal and Spain, but with a twist - they are completely detached from social media for the entire 7-day adventure. The goal is to allow influencers to fully immerse themselves in the cultural experiences and connections, rather than documenting them online.
Throughout the trip, Contiki provided glimpses of the journey through videos capturing the influencers' authentic experiences. After reconnecting online, the creators shared their enriched perspectives with followers, releasing user-generated content and brand videos across social media platforms. The campaign highlights the importance of living in the moment, rather than just capturing it online.
For local restaurants, Katz recommends targeting micro-influencers in their geographic area rather than nationally-known personalities. Key metrics to evaluate are average video view counts (not just follower numbers), view-through rates, and audience demographics matching the restaurant's customers.
Payment rates can vary widely, but restaurateurs may find good value with smaller, unsigned influencers charging $500-$1,000 per post versus big names demanding $25,000. Resonant content ideas include showing menu hacks, secret items, or relatable insider tips.
The key is finding authentic, relatable influencers who organically fit your brand's vibe and have already positively mentioned your restaurant. Build lists of these micro-influencers in your market and pull them into an ambassador program.
Avoid influencers who come across as inauthentic or just getting free meals. The most effective campaigns use real, everyday personalities your customers can relate to for trusted recommendations within their community.
Interesting People
Actress Chantelle Rance unexpectedly launched an influencer career during the pandemic lockdowns. With acting work halted, she began posting fashion and lifestyle content on Instagram. As brands reached out for paid partnerships, Rance realized she preferred the direct fan connection over acting roles.
Drawing from her pageant background valuing support within the industry, Rance tries fostering camaraderie among fellow creators as her following grows. She balances audience feedback with staying true to her authentic personal brand.
Early hurdles included gaining an initial following through consistent posting, and managing the mental pressures by taking breaks when needed. Joining agency Sintillate Talent last year elevated her career through more photographer collabs and brand deals.
Beyond influencing, Rance recently co-launched a podcast with her friend bridging their contrasting lifestyles as a model and working mom. The relatable show garnered positive feedback, including addressing insensitive comments Rance faced about her multiracial heritage.
Model Maria Bueno Gamo has transitioned into being an influencer, crediting her new partnership with agency Sintillate Talent as a driving force. She has found a supportive creator community and opportunities like collaborating with hair brand Halo.
Gamo previously worked with model agencies she says promoted unhealthy practices around mental health and weight. The COVID-19 lockdowns made her realize social media's potential beyond just modeling photos.
While social media increases visibility, Gamo cautions it can promote unrealistic standards through heavy editing without proper guidance. She aims to inspire and provide realistic advice to aspiring models, being "straightforward" rather than rushing into specialties.
Balancing authenticity with her professional persona is important. Gamo doesn't want to be "a copy of somebody" but show her true self through style like tattoos.
Looking ahead, she plans to continue brand collaborations while building a coaching career to guide others in navigating the influencer space respectfully and as a positive role model. Her goal is "connecting with the right people" and an uplifting community creating opportunities ethically.
Influencer Arielle Charnas has launched a paid Substack newsletter after the shut down of her Something Navy clothing line. Charnas built a following of over 1 million on Instagram before launching her own clothing brand in 2018. However, Something Navy struggled despite initial buzz, facing rumors of her marriage troubles, allegations of mismanagement by the CEO she hired, and backlash after a pandemic traveling incident.
In her new Substack posts, Charnas denies marriage issues and blames the former CEO for running Something Navy "into the ground." She says she's returning to her blogging roots after being burned by expanding too quickly into products and retail. Like other influencers who have pivoted to Substack, Charnas sees the newsletter as a way to directly connect with loyal fans without algorithms or online critics.
Her $5/month Substack has already amassed over 8,000 subscribers in its first week. Charnas says the paywall allows her to create a "safer" community after years of the press spreading "lies" about her family. She has seemingly sworn off speaking to journalists again.
In a major development for the NCAA's name, image and likeness (NIL) landscape, Utah State transfer Great Osobor has committed to the University of Washington with a record $2 million NIL valuation. The 6'8" forward from England was this season's top remaining recruit in the transfer portal after averaging 17.7 points and 9 rebounds per game.
Osobor's lucrative NIL package, negotiated by his agent, includes assured marketing opportunities. He chose Washington over offers from Louisville and Texas Tech, citing his desire to maximize his potential under his former Utah State coach.
The $2 million valuation underscores the accelerating NIL arms race, with top returning players and transfers now securing seven-figure deals, particularly versatile frontcourt talents like Osobor. He joins a loaded Washington roster featuring multiple five-star recruits and high-profile transfers.
This record-setting deal highlights how the NIL era has quickly reshaped roster construction and recruiting dynamics in college basketball.
Industry News
A group of veteran online video executives have launched Fixated, a new hybrid company that combines talent management services with an original content studio focused on the creator economy.
Fixated's co-founders have extensive experience, including CEO Zach Katz formerly of FaZe Clan and President Jason Wilhelm previously co-founding TalentX. Other leaders worked at firms like BroadbandTV and SoleSavy.
Despite being relatively new, Fixated has already amassed an impressive roster of creators like streamer Sketch, the Botez Sisters chess personalities, and prank group Love Live Serve.
The company offers traditional talent management alongside developing original shows, movies, and interactive video game experiences featuring its creator clients. Its goal is "elevating" what's expected in digital entertainment to build commercial value for creators.
In under a year, Fixated has launched over 20 successful programs across platforms, with its in-game activations earning 250 million plays/views so far.
The UK's podcasting industry is up in arms over the BBC's plan to introduce advertising on some of its podcasts. In a letter to Culture Secretary Lucy Frazer, 20 media companies, including ITV, Sky, Bauer, and Global, have expressed "deep concern" over the proposal. They argue that the BBC's £5.7 billion income gives it an "unfair competitive advantage" over independent podcasters.
The companies claim that extracting audio advertising funds from the UK podcasting market would be disastrous for small podcast producers. The BBC's plan, announced in March, would see ads on third-party platforms like Apple and Spotify, but not on BBC Sounds. The letter requests media regulator Ofcom review the UK audio market. The government has asked Ofcom to hold the BBC accountable, while the BBC argues the plan is necessary to generate more revenue and ensure sustainability.
Creator economy startup cartd aims to enable food influencers to monetize their authentic recipe content that drives grocery purchases but lacks attribution. Co-founded by retail tech veteran Ben Hawkins, cartd's AI platform streamlines the process from viewing a creator's recipe video to checking out with all the required ingredients in just three clicks.
Its recommendation engine optimizes grocery lists across multiple saved recipes to reduce household food waste. Hawkins envisions creators earning income from the sales their content inspires, providing monetization like creators in other verticals.
For consumers, cartd simplifies going from recipe inspiration to a pre-loaded grocery cart integrated with their preferred retailer. It reduces waste by suggesting complementary recipes for leftover items.
Brands can leverage cartd as a central platform to partner with food creators, maximizing returns by attributing sales to specific content. Robust analytics tools are next on the roadmap.
Longer-term, Hawkins sees integrating AI to dynamically generate new recipes based on dietary needs and leftover ingredients. His vision is cartd becoming the "infrastructure layer" connecting social media inspiration to grocery checkout.
Major UK ad agency Bicycle London is entering the creator economy by launching an in-house influencer marketing arm called Ripple. They've formed a strategic partnership with Australian influencer marketing firm Hypetap to bring their data-driven capabilities to the London market.
Ripple will provide services like influencer strategy, data-backed insights and selections, paid influencer campaigns, and platform-specific creative direction. Bicycle London's CEO cited the need for influencer marketing to drive brand engagement and growth.
The partnership allows Bicycle to integrate Hypetap's self-described "profound expertise" in influencer marketing and "robust" data science for analyzing and identifying the right influencers. Hypetap's CEO says they aim to set new performance benchmarks in the space through the collaboration.
Jack Adler's startup Out2Win is using artificial intelligence to transform how brands identify and work with athlete influencers in the name, image and likeness (NIL) era. Out2Win's upcoming platform will rank athletes based on an "Out2Win score" - an AI algorithm evaluating their off-the-field marketability as creators.
Adler argues brands should evaluate athletes more holistically as content creators, rather than just their on-field performance, since 75% of NIL deals are social media sponsorships. Out2Win's platform aims to provide data-driven athlete assessments along with campaign resources like contract templates.
The company also emphasizes philanthropic initiatives, recently fundraising for cancer support through an "Athlete Creators for Cause" program. Looking ahead, Adler hopes to develop tools helping time-strapped athlete creators remain consistent.
While building the business, Adler wants to shift the NIL focus from pay-for-play deals to brands sponsoring authentic athlete creator content. He ultimately envisions Out2Win evolving into a broad platform serving current and former pro athlete creators.
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Creator economy startup Jellysmack has sold off its JellyFi catalog-licensing arm to Copyright Capital. JellyFi paid creators upfront for the rights to future ad revenue from their video content libraries. However, former employees say creators were reluctant to hand over control of their YouTube channels, and competition made winning new licensing deals difficult.
Jellysmack launched JellyFi in 2022, setting aside $500 million to acquire creator catalog rights. But the company has now deprioritized the business to focus on more profitable core initiatives. This includes Jellysmack's original creator partnership model of reposting YouTube videos across other platforms.
The sale allows Jellysmack to double down on its strengths after exploring various new business lines like content production, AI assistants and NFTs over the past couple years. Copyright Capital says it hopes to continue collaborating with Jellysmack going forward.
"Travel influencer Devin Halbal, known as "Hal Baddie" on TikTok, went viral in Asia after posting a video of herself saying the Japanese word "kudasai" meaning "please" while walking the streets. The 26-year-old American had amassed hundreds of thousands of followers with inspirational fashion and travel videos. But her "kudasai" video exploded, getting over 13.5 million views and turning her into the "kudasai girl" internet sensation across Japan.
Halbal extended her original 2-week Japan trip to 2 months, picking up fans across Asia enthralled by her attempts to immerse herself in local languages and cultures. She's since toured South Korea, where she's started learning Korean phrases too. With a huge new following in Asia, the formerly New York-based creator is considering permanently relocating to South Korea or Japan and is even teasing the idea of launching a K-pop music career off her viral fame."
YouTube star MrBeast's recent split from his talent manager of 6 years at Night Media could signal a broader trend of top influencers seeking more control over their brands and careers as they gain massive followings and opportunities.
The breakup highlights the tension that can arise when influencers outgrow the need for traditional middlemen brokering deals between them and brands. Experts say as creators like MrBeast build their own businesses and teams, they may prefer having direct oversight over negotiations and projects rather than ceding some control to talent managers.
While parting with managers provides more autonomy, it also limits creators' access and support systems. Those talent firms that evolve from just being "middlemen" to valuable personal resources integrated with an influencer's brand may survive.
But overall, MrBeast's separation represents top influencers' increasing desire to "own" their audience connections and capture more value themselves as their star power rises. Disintermediation from agencies could become more common.
Creator economy startup Jellysmack raised a nine-figure round led by SoftBank in 2021, allowing it to rapidly expand by signing hundreds of influencer partners. However, insiders say the company grew too quickly and lost focus, struggling after Facebook algorithm changes and video monetization shifts made its model less profitable for many new creators.
Jellysmack laid off staff while continuing heavy marketing spending. It explored new initiatives like content licensing, production, and AI tools, but these efforts largely fizzled. The company became a "holding company" acquiring other businesses as its core creator program floundered.
After three rounds of layoffs, the once-promising unicorn is now "a shell of what it once was," according to a former employee. Jellysmack's experience underscores the volatility of building a media business dependent on constantly evolving social platforms and algorithms.
While Jellysmack aims to refocus on its original owned-and-operated channel strategy, its trajectory serves as a cautionary tale about the challenges of scaling a creator economy startup too ambitiously.