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- Influence Weekly #340 - Why Paying Influencers Based On Engagement Quantity Encourages Harmful Collusion, Experts Warn
Influence Weekly #340 - Why Paying Influencers Based On Engagement Quantity Encourages Harmful Collusion, Experts Warn
YouTube King MrBeast Taps Silicon Valley Heavyweight To Lead His Media Empire
Nii Ahene
June 07, 2024
Spotlight Stories
Why Paying Influencers Based On Engagement Quantity Encourages Harmful Collusion, Experts Warn
Colgate Bets Big On The Future Of Audio With Major Steven Bartlett Podcast Partnership
BENlabs Shakes Up Leadership And Cuts Staff: What’s Behind The Restructuring?
YouTube King MrBeast Taps Silicon Valley Heavyweight To Lead His Media Empire
Great Reads
Thece has partnered with Miracle-Gro on an innovative campaign getting gamers to create virtual gardens and show their skills in farming simulator games. Participants must record themselves planting, using fertilizer, and showcasing their garden, with a chance to win prizes from Miracle-Gro. The campaign taps into the audience of farming sim fans, with influencers spreading the word across platforms like Stardew Valley's community.
A core aspect is allowing flexibility across multiple game titles to reach a wider audience. Unique to the campaign, creators must not only promote it but also submit their own entries to build authenticity. Audience members get to creatively participate and may unlock future opportunities with the brand.
Thece emphasizes authenticity by working closely with gaming culture, celebrating passions over aggressive marketing. They utilize Twin Galaxies to ensure challenge integrity is properly reviewed. Looking ahead, the campaign model showcases a fresh approach for brands to connect with niche gaming communities through rewarding, engaging experiences.
Former Priceline executives have launched Plannin, a global travel booking platform leveraging over 600 influencers to provide authentic hotel recommendations. The platform taps into the $250 billion creator economy by allowing influencers to earn a 5% lifetime commission on bookings from their followers. With around 5,000 posts and 1,500 recommendations currently, Plannin aims to provide travelers with trusted advice over anonymous reviews.
The approval process requires a minimum of 10,000 followers, but may include micro-influencers specializing in travel. Creators are incentivized to provide honest reviews due to their deep personal connection with audiences. Powered by a partnership with Booking Holdings, Plannin offers over 2 million hotels worldwide. This month, "Trip Boards" will launch, enabling curated destination itineraries. After securing $2.5 million in funding last year, Plannin plans to raise more venture capital this summer to expand its creator-driven travel platform.
A recent Fohr survey of 200 U.S. TikTok creators with over 10,000 followers provides insights into how they are reacting to the potential ban. While 62% don't believe TikTok will be banned by 2025, brands are taking some precautions - 7% have paused or canceled campaigns, and 8% have asked to shift deliverables. However, 83% say sponsorships are so far unaffected since the law passed demanding TikTok separate from ByteDance. If banned, 67% say Instagram would be the best alternative for growing their audience versus 22% for YouTube.
The survey highlights the rise of "user-generated content" brand deals where creators make marketing videos for brands - 18% cite this as their top TikTok revenue stream. Despite threats, TikTok's commercial impact persists with over 11% of U.S. households making a purchase through its e-commerce feature since last September. The findings suggest most creators are cautiously optimistic about TikTok's future for now.
Campaign Insights
Swedish furniture giant IKEA is shaking up the job market with its new 'Careers Done Different' campaign. The company is launching a virtual in-game store within the popular online game Roblox, where players can apply for paid positions. Dubbed 'The Co-Worker,' the virtual store aims to attract a younger generation of workers. The campaign will also be integrated across social media platforms like Instagram, TikTok, and LinkedIn, as well as in-store activities.
Players will be able to immerse themselves in the IKEA experience, switching between departments and gaining experience for their avatars. According to IKEA, the goal is to bring career progress to life in a non-traditional way. The virtual store is set to open on June 24. This innovative approach could set a new standard for employer-branding and recruitment strategies.
A new study by researchers at the University of Nottingham warns that the practice of paying social media influencers based on engagement quantity creates incentives for harmful collusion and fraud. The study, published by the European Centre for Economic Policy Research, finds that groups of influencers, or "cartels," manipulate engagement numbers to secure higher advertising fees. The researchers identify two types of cartels: those that restrict content and those with no restrictions.
They find that engagement from general cartels is low-quality and only 3-18% as valuable as organic engagement. The study concludes that the influencer marketing industry, which reached $31 billion in 2023, is harmed by exaggerated influence, as less than 20% of companies track actual sales driven by campaigns. The authors propose compensating influencers based on actual value provided and suggest that platforms report match-quality-weighted engagement to improve transparency and effectiveness.
The 2024 UK general election has been dubbed "the first TikTok election" as parties invest heavily in digital campaigning on the platform. Labour has posted far more TikTok videos than the Conservatives, using memes and trending sounds to connect with younger voters. While some influencers praise Labour's approach, others argue the content lacks clear messaging. Overall, TikTok is just one piece of broader digital strategies focused on Meta, Google, email/SMS outreach to mobilize supporters.
Spending has skyrocketed, with Labour outspending the Tories 4-to-1 recently on platforms like Facebook. However, some experts doubt TikTok's real impact, as older demographics drive election outcomes. Parties aim to harness vertical video's appeal to youth while transitioning digital efforts to TV streaming. The challenge remains cutting through noise to convey substantive policies amidst novelty meme content.
LG Electronics has launched a new global campaign called 'Optimism your feed' to encourage users to bring more positivity to their social media experience. According to a recent survey, 20% of people say social media makes them unhappy, while 28% report increased anxiety due to negative content on their feeds. The survey found 45% of respondents see more negative content on their feeds than positive content.
LG's campaign involves partnering with influencers to create motivational and feel-good content. The company also consulted with experts to understand how algorithms influence online experiences. Professor Casey Fiesler emphasized the importance of digital literacy and understanding how algorithms affect our online experiences. The 'Optimism your feed' playlist is currently available on LG's TikTok and YouTube channels, with plans to expand to other platforms. The campaign aims to tip the scales and promote a more positive social media experience
Amazon has unveiled two new initiatives - Creator University and Creator Connect - aimed at empowering influencers to scale their presence and impact on the platform. Creator University provides a curriculum covering all aspects of effective Amazon content creation through video tutorials, articles, and interactive workshops. Topics include identifying ideal products, creating compelling content, driving traffic, building audiences, and optimizing performance.
Creator Connect consists of in-person events timed around major Amazon sales to generate excitement and attract new creators to the Amazon Influencer Program. These events offer networking opportunities, workshops led by influencers, meetings with Amazon leaders, product showcases, and trend discussions.
Colgate is making a strategic foray into podcast advertising in the UK market. The toothpaste giant, whose Colgate Total brand is found in 20% of British households, announced a six-month advertising campaign with “The Diary of a CEO” hosted by Steven Bartlett, Podnews confirmed.
The popular entrepreneurship-themed podcast was Apple’s number-one show in the UK in 2023 and ranks as the second biggest globally on YouTube, with over 390 million total views to date. Bartlett’s program attracts a large audience eager for self-improvement and health content each week.
The campaign, negotiated by Colgate’s media agency Wavemaker UK and podcast monetization firm Adelicious, will feature host-read advertisements from Bartlett endorsing Colgate Total toothpaste and promoting the new Colgate Total Plaque Pro-Release product. Financial terms were not disclosed.
Interesting People
With over 1 million followers, Anya Bumag offers a glimpse into the lucrative world of affiliate product reviews. Transitioning from photography, Bumag now crafts engaging videos showcasing innovative home products. Her success stems from reviewing items she genuinely finds useful, as well as capitalizing on viral trends. Bumag scripts and meticulously plans each video to efficiently demonstrate products in use. She attributes video popularity to the featured product itself and an engaging, fast-paced presentation style.
While income varies based on affiliate promos versus brand deals, consistency in posting compelling content is key. Looking ahead, Bumag aims to expand into long-form YouTube review series. She advises aspiring reviewers to spotlight unique, multi-functional products they would personally buy and use. Working with a talent manager like 500 Mgmt has boosted Bumag's confidence through strong advocacy. As product discovery shifts online, creators like Bumag are redefining marketing through authentic recommendations.
Vietnamese-American beauty entrepreneur Michelle Phan, who pioneered the beauty influencer movement on YouTube in 2007, shared insights into her beauty philosophy and favorites. Her current desert island beauty essentials are the Em Cosmetics Lip Cushion tint, a brow pencil/eyeliner, and tinted SPF 50 sunscreen. Phan's signature fragrances include Baccarat Rouge 540 Extrait for special occasions and D.Grayi White Rabbit as an uplifting everyday scent. An underrated product she lauds is beauty essence for cleansing.
Self-care for Phan means indulgent baths, doing her makeup, and self-love rituals. Her beauty philosophy centers on minimalism, enhancing favorite features, and radiating positive energy. The makeup item she can't live without now is the blurring, pore-minimizing Em Cosmetics Portrait Mode Setting Powder, even when going makeup-free. Phan's perspective provides an inside look at the philosophies driving one of beauty's most influential entrepreneurs.
Joseph Debenedictis, a Canadian influencer and comedian, has shared his journey to success in the world of comedy and content creation. With over 20 years of experience in the industry, Debenedictis has built a reputation for his unique blend of humor and relatability. From his early days as a video editor to his current status as a full-time content creator, Debenedictis has garnered a massive following across various social media platforms.
His content formats include stand-up comedy, food reviews, and cultural comparisons, which have all contributed to his success. Despite facing challenges and setbacks, Debenedictis remains committed to persistence and continuous learning, offering valuable advice to aspiring creators.
At just 22, Tasha Green is quickly rising as a UK fashion and beauty influencer. The former "insecure country girl" found passion and confidence through creating inspirational lifestyle content. Initially skeptical of the industry, joining influencer agency Sintillate Talent provided crucial guidance after health issues temporarily sidelined her career. Creating content became motivating during her neurological condition, providing a sense of purpose.
Major milestones like attending London industry events and landing brand deals with PrettyLittleThing boosted her confidence. Green prioritizes self-care like dedicating full shoot days and quality time with her dog to avoid overload. She credits Sintillate's support during difficult times. Now with over 25,000 Instagram followers, Green aims for bigger luxury brand partnerships through networking at events like Cheshire Fashion Week. She is also pursuing modeling agency representation to facilitate loftier sponsorship goals, exemplifying how content creation provided an unexpected career path and creative fulfillment..
Meet Raffi Mouchmouchian, aka 'The Car Dealer Guy', who's built a massive following across social media platforms with his humorous sales skits and car-related content. As a former car salesman, Raffi leveraged his industry expertise to create engaging content, amassing over 300,000 followers and securing lucrative brand deals.
His ultimate goal is to become a world-renowned entertainer and lifestyle creator. With a focus on creativity and relatability, Raffi advises aspiring creators to be yourself and create what you believe will sell," bucking the trend of focusing solely on what others think. As he continues to grow his personal brand, Raffi's success serves as a testament to the power of authenticity and an infectious sense of humor.
Industry News
A new survey by video software company MASV reveals a growing divide between creators and brands regarding the use of user-generated content in marketing campaigns. The survey finds that 47% of creators have had their content used by brands without permission, with 74% of those creators not receiving payment for the use of their work. Meanwhile, nearly half of marketers believe there is little to no risk in using creators' content without permission.
The survey highlights the importance of creators demanding respect and asking for permission before using their work. Industry experts warn that unauthorized use of creator content carries legal and reputational risks for brands. As the influencer marketing industry continues to boom, the survey serves as a wake-up call for brands to prioritize creator rights and respect. With 31% of creators receiving payment after flagging unauthorized use, it's clear that creators will not be silenced in their fight for fair compensation.
Influencer marketing firm BENlabs announced on LinkedIn a restructuring focused on three core areas: product placement, influencer marketing, and the creator-analytics platform TubeBuddy.
The company stated the change will enable it “to concentrate on how we can uniquely assist both brands and creators in reaching their target audiences more effectively and efficiently through content and entertainment.”
As part of the restructuring, BENlabs appointed Ted Sheffield as the new CEO, replacing Ricky Ray Butler, who had led the company since 2018. Sheffield joined BENlabs over 12 years ago and previously served as COO and general counsel. The firm also reduced its workforce, though it did not disclose how many employees were laid off.
MrBeast Industries, the media and entertainment company founded by YouTube star Jimmy Donaldson, has appointed Jeffrey Housenbold as its new President and Chief Operating Officer. Housenbold, a seasoned executive and venture capitalist, will be based at the company's headquarters in Greenville. As the new COO, Housenbold will be responsible for driving the company's growth and expanding its reach. The industry veteran has a successful track record, having led Shutterfly through an IPO and numerous acquisitions.
Housenbold joins MrBeast Industries as the company continues to grow, with its YouTube channel recently surpassing T-Series to become the most subscribed channel on the platform. Despite the company's success, Donaldson noted that MrBeast Industries is not yet profitable, with estimated annual revenues between $600 million and $700 million. Housenbold's appointment comes after the company's split from talent management company Night Media, with Donaldson looking to build an internal team for the company
Benjamin Leslie transitioned from advertising to founding the UK influencer talent agency Connect Management in 2020 after seeing the revenue potential of partnering brands with creators. Connect now represents over 160 influencers and runs 1,000+ monthly brand campaigns.
Rather than transactional sponsorships, Connect emphasizes forging authentic, mutually beneficial long-term collaborations between creators and brands. Leslie coaches influencers to identify genuine partnership opportunities, then takes the lead crafting impactful branded content activations for companies.
The agency leverages its social media expertise to challenge brands' initial concepts if needed. As Leslie says, ""We are the ones who know and understand whether something is going to do well...Brands are giving us more control now.""
With a keen understanding of what resonates online, Connect aims to become the top destination for UK influencers seeking career development and brand building beyond one-off deals. Its comprehensive approach exemplifies the evolution of influencer marketing.
Leanne Perice didn't set out to be an entrepreneur, but her passion for representing creative talent led her to found the talent management firm Made by All in 2016. Initially focused on musicians and influencers, the company now takes a full-service approach managing top digital creators like Haley Kalil and Teyana Taylor across 600+ million followers.
Beyond brokering brand deals, Made by All co-founds product lines, facilitates investments, and maximizes content monetization for clients. As consumption patterns evolve, they guide creators on trends and monetization strategies across platforms.
Leanne cites overcoming challenges through growth mindsets as key to her success. Her advice to founders is to take the first leap without waiting for perfection, view obstacles as opportunities, and focus on what you have versus lacking resources.
Kajabi, a leading platform for digital creators and entrepreneurs, has launched creator.io - a new AI tool designed to help users automate and scale their businesses more efficiently. Utilizing natural language processing, creator.io ingests a creator's existing video courses, websites, PDFs and other content to power a personalized chatbot system.
For website visitors, the chatbot captures email leads, recommends products and offers promotions. With existing customers, it guides them through the creator's content library and surfaces exclusive bonus material. Creators can quickly set up and customize the chatbot's name, appearance and persona.
According to Kajabi, creator.io is already providing significant value by transforming lead capture and customer service workflows for users like Samantha and Ike. The tool aligns with Kajabi's mission to ""increase commerce for creators"" by leveraging AI to automate key business functions.
Captions, an AI-powered creative studio, has launched AI Creator - a new tool that allows users to star in videos using customizable 3D avatars without being on camera themselves. The feature enables creating talking videos for social media by selecting an avatar as the subject and personalizing production elements like language (28 supported).
Aimed at those wanting to create content without appearing on camera, AI Creator currently offers an avatar collection styled for social platforms. Captions plans to introduce more avatars and customization options based on user feedback. The company has also launched AI Creator Ads for producing ad-style talking head videos from product links, utilizing creator avatars that resemble user-generated content. The AI Creator program will allow creators to become avatars and earn passive income.
The creator-focused video streaming platform Nebula has formed a new partnership with Spotify that will bring content from internet stars to the leading audio platform's 615 million users globally. Popular Nebula creators like CinemaWins, Adam Neely, and Todd in the Shadows will provide video content accessible through Spotify's podcast and creator hub initially.
For Nebula, the deal represents a major opportunity to showcase its ad-free, creator-driven video offerings to a vastly wider audience beyond its paid subscriber base that tripled over the past year. Spotify's Jordan Newman cited the collaboration as enabling creators to expand reach and exposure.
Nebula CEO Dave Wiskus highlighted the partnership as a way to spotlight the platform's talented creator community. The move marks Nebula's first integration with a major audio streaming service as it positions itself as an innovative, creator-centric video subscription business now hosting over 180 digital creators.
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Ogilvy recently launched a health influence service to connect medical expertise with public awareness for healthcare and wellness brands. Rebecca Carter, Ogilvy Health UK's Head of Social Media and Health Influence Lead, explains that 93% of those engaging health social media take resulting actions like scheduling appointments. The landscape has evolved with people seeking online health information amid misinformation concerns.
Typical briefs span expert patient partnerships for disease awareness to working with health influencers promoting healthy aging products. Campaigns utilize both macro-influencers and niche voices like medical journalists based on targeted needs. While TikTok is pivotal with over 61 billion healthcare video views, influence strategy extends beyond social to panels, focus groups and more.
Carter cites an AI virtual influencer campaign making STI prevention relatable for Vietnamese teens as an innovative example. The comprehensive influence approach understands the nuances of credibility and influence across patient, provider and stakeholder audiences for maximum healthcare marketing impact.