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- Influence Weekly #348: Cameo’s Legal Battle Reveals Hidden Risks In Paid Endorsements
Influence Weekly #348: Cameo’s Legal Battle Reveals Hidden Risks In Paid Endorsements
2,000 Contestants, 3 Medical Emergencies: Inside MrBeast’s ‘Beast Games’ Chaos
Nii Ahene
August 02, 2024
Spotlight Stories
2,000 Contestants, 3 Medical Emergencies: Inside MrBeast’s ‘Beast Games’ Chaos
Influencer Alert: Cameo’s Legal Battle Reveals Hidden Risks In Paid Endorsements
Gen Z Is Embracing 'Underconsumption Core
Publicis Bets $500 Million on Influencer Marketing With Acquisition of Influential
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Great Reads
A new report from podcast advertising analytics firm Magellan AI reveals that over 1,500 new brands began advertising on podcasts in Q2 2024, driving a 22% year-over-year increase in ad spending. The report analyzes data from the U.S., Canada, UK, Ireland, Germany, and Australia across English, Spanish, and German podcasts. It found the average advertiser ad load rose to 7.19%, contributing to an overall 9.11% ad load across sampled episodes.
A new report from podcast advertising analytics firm Magellan AI reveals that over 1,500 new brands began advertising on podcasts in Q2 2024, driving a 22% year-over-year increase in ad spending. The report analyzes data from the U.S., Canada, UK, Ireland, Germany, and Australia across English, Spanish, and German podcasts. It found the average advertiser ad load rose to 7.19%, contributing to an overall 9.11% ad load across sampled episodes.
While top spenders maintained dominance, the gaming industry saw ad spend more than triple quarter-over-quarter. Direct response ads accounted for 44% of spend, but brand awareness campaigns gained ground at 54%. Mid-roll placements and shows ranking in the top 500 by popularity attracted the biggest ad dollars. Podcasts in genres like True Crime had higher ad loads compared to longer episodes over 60 minutes. The report provides insights on trends influencing the continued growth of podcast advertising.
MrBeast, the popular YouTuber known for his high-stakes challenges and philanthropy, recently filmed ""Beast Games,"" a new competition series in Las Vegas featuring a reported $5 million prize. However, the production involving 2,000 contestants faced logistical challenges and raised concerns about participant safety and well-being. Three medical emergencies occurred among contestants, with reports of inadequate on-site medical staff, confiscation of medications, limited access to food and water, and poor sleeping arrangements.
Questions have also been raised about the fairness of the competition, with some contestants forming teams of primarily young, strong men. Despite these issues, experiences varied, with some participants reporting having a great time while others described difficult conditions and safety concerns. The Las Vegas competition was intended for YouTube content and is separate from the planned Prime Video series.
Campaign Insights
Snapchat and NBCUniversal have unveiled new augmented reality (AR) experiences for the 2024 Paris Olympics to engage viewers through personalized and interactive content. The International Olympic Committee has introduced AR lenses that transform surroundings into 1924 Paris and interact with the official Games poster. NBCUniversal has partnered with Snapchat's AR studio Arcadia to create immersive Olympic experiences for Gen Z U.S. viewers, including an Opening Ceremony view, personalized recommendations, and athlete Bitmoji interactions.
Brands like Coca-Cola have collaborated with Snapchat on AR vending machines and photo opportunities. NBCUniversal has expanded Olympics content on Snapchat with highlights, athlete profiles, user-generated content, and historical moments. This Olympics partnership taps into Snapchat's 180 million monthly sports content viewers.
Kamala Harris has joined TikTok, launching an official account during the 2024 presidential campaign. Despite ongoing security concerns from U.S. lawmakers about TikTok's Chinese ownership, Harris recognizes the platform's popularity among young voters.
Her presence contrasts Biden's approach of using only the campaign account. While some politicians embrace TikTok's reach, others push for a potential nationwide ban over data harvesting fears. The move highlights TikTok's complexities, as politicians weigh reaching voters against national security risks.
The legal battle between celebrity video platform Cameo and 30 state Attorneys General highlights the hidden risks of paid endorsements for brands and influencers. Cameo agreed to a $100,000 settlement over allegations it failed to properly disclose paid endorsements on its ""Business Cameo"" service. The settlement requires Cameo to implement measures like content watermarking, user acknowledgment of endorsement rules, compliance monitoring, and a third-party reporting system.
This regulatory action underscores the importance of clearly disclosing material connections between endorsers and advertisers per FTC guidelines. While Cameo's platform is unique, the principles apply broadly to influencer marketing campaigns across media. The financial impact, with Cameo's initial $600,000 fine reduced due to constraints, exemplifies potential risks for non-compliant platforms.
TikTok's recent ""Deals For You"" shopping event underperformed, with a 6% decline in gross merchandise growth in the U.S., contrasting sharply with Amazon's Prime Day success. While TikTok has seen e-commerce traction in Asian markets, Western consumers prefer dedicated shopping platforms like Amazon.
TikTok faces challenges in establishing itself as a major e-commerce player in Western markets due to factors like consumer behavior, data privacy concerns, and potential government scrutiny. The platform aims to relaunch in-app shopping tools in Europe after previous setbacks, highlighting its ongoing efforts to gain a foothold in the social commerce space.
Sri Lanka is expanding its social media influencer campaign to boost tourism.
According to Chalaka Gajabahu, Chairman of the Sri Lanka Tourism Promotion Bureau, the country plans to bring in 40 new influencers to promote various aspects of its tourism offerings.
This initiative builds on a “seeing-is-believing” campaign that brought 190 influencers to Sri Lanka.
Gajabahu credits this strategy for Sri Lanka’s current ranking in the top 5 global travel indexes, particularly when some countries like the U.S. issued travel alerts for Sri Lanka due to protests over the economic and political situation and terrorist attacks.
In January, Sri Lanka launched a 1.5 billion tourist campaign, which includes collaborations with high-profile social media personalities such as Nas Daily and Luke Martin.
YouTube's latest insights reveal fans are playing an increasingly influential role in shaping pop culture, creating content that often gains more views than the original source material. More Gen Zers than ever describe themselves as content creators, making everything from fan art to reaction videos. Creators are capitalizing on major entertainment moments by providing commentary that deepens fan engagement.
Some creator-led projects are transcending YouTube to become mainstream hits picked up by studios. Brands can leverage these fan dynamics by enabling fan creation, tapping into existing fan communities, and partnering with influential creators who understand how to cultivate loyal followings.
Interesting People
From YouTube Beginnings To Fortnite Worlds: How Adshot's Co-Founder Is Changing Influencer Marketing
From YouTube beginnings to the Fortnite metaverse, Adshot co-founder Axel Gekiere is changing influencer marketing. The Belgian agency leverages technology to bridge brands and creators, streamlining campaigns while ensuring fair influencer pay.
Adshot's hybrid model blends data-driven influencer selection with human expertise for innovative activations like custom Fortnite worlds. As influencer marketing evolves, Gekiere aims to make campaigns easier for brands via user-friendly tech solutions, while treating creators as valued partners through collaboration and creative freedom. The future lies in professionalizing influencer marketing on both sides for successful long-term brand-creator relationships.
"A new generation of "influencer chefs" is revolutionizing food content on social media platforms like TikTok, Instagram, and YouTube. These creators, such as Owen Han and Albert Niazhvinski, have amassed millions of followers by producing short, visually appealing videos that focus on the process of cooking rather than providing step-by-step instructions.
Unlike traditional cooking shows, these videos emphasize skill and artisanship, often using quick cuts, close-ups, and high-definition sound effects to create an engaging sensory experience. The content is designed to impress and entertain rather than educate viewers on replicating the dishes.
This trend represents a shift from celebrity chef culture and instructional cooking shows to a more democratic, DIY approach that celebrates the mechanics of cooking. It aligns with broader trends in the restaurant industry, such as open kitchens and chef's table experiences, that allow diners to observe culinary processes.
The digital homesteading movement, fueled by social media influencers like Morgan Gold, is reshaping how people think about food, self-sufficiency and connection to nature. Morgan, a former New York marketing executive who traded his corporate career for a farm in rural Vermont, saw a surge in popularity during the pandemic as millions turned to him for advice on growing food and raising animals. Through multi-platform content spanning YouTube, Instagram and TikTok, Morgan shares authentic stories and practical tips on sustainable living, blending traditional farming with cutting-edge content creation strategies like using AI for editing assistance.
This intersection of agriculture and influencer marketing represents a new model of rural entrepreneurship, with potential to revitalize communities and promote more localized food systems. As the movement evolves alongside technological advancements, influencers like Morgan are exploring innovative ways to engage audiences and make a positive impact.
Level Up Creators is transforming how creators build sustainable businesses. The startup, co-founded by CEO Amanda Northcutt, offers a two-pronged approach - a high-touch consulting firm for established thought leaders to monetize their expertise, and an online school teaching comprehensive business skills. With a focus on recurring revenue streams like digital products and services instead of brand deals, Level Up Creators empowers creators, especially women and marginalized groups, to achieve financial independence.
Northcutt envisions shaping the future creator economy by equipping individuals with the tools to turn their knowledge into profitable ventures, leveraging technologies like AI while maintaining authenticity. The company aims to provide one-stop solutions, guiding creators through every aspect of running a successful business.
Industry News
TikTok has launched a new feature allowing creators to upload custom thumbnail images for their videos, aligning the platform with competitors like Instagram Reels and YouTube Shorts. This update enables users to select a specific video frame or upload an entirely custom image as the thumbnail, potentially boosting video visibility and discoverability on the app.
The importance of thumbnails in driving views is highlighted by top creators like MrBeast, who reportedly invest heavily in creating engaging thumbnail images for their videos. While TikTok content is primarily discovered through the main feed, custom thumbnails could enhance discoverability in other areas of the app, particularly for educational and tutorial content where an explanatory image better represents the video subject matter.
Influencer-led beauty brand Summer Fridays secured a major investment from private equity firm TSG Consumer Partners. Founded by influencers Marianna Hewitt and Lauren Ireland in 2018, Summer Fridays started with their popular Jet Lag Mask and has since expanded into additional skincare, lip, sun and body care products.
The investment aims to fuel further product development, brand building and global expansion for the community-driven brand that has leveraged Hewitt and Ireland's significant social media followings. TSG takes a majority stake while Hewitt, Ireland and the existing management team retain equity and continue leading the brand. As the first notable influencer beauty brand sealing an investment deal in 2024, the move highlights the growing maturity and investor interest in the influential creator economy space.
Matthew Patrick, known as MatPat, has achieved a major milestone in the creator economy by successfully exiting his company, Theorist Media, through an acquisition by Lunar X. This transition allowed him to retire from his illustrious YouTube career, where he had amassed over 40 million subscribers across multiple channels. What makes MatPat's exit unique is that he managed to sell his company despite the challenges creators face in finding buyers for businesses heavily reliant on their personal brands.
After the acquisition, MatPat is now lobbying on Capitol Hill to educate lawmakers about the creator economy and advocate for policies that support creators as small businesses. He aims to address issues such as the lack of industry standards, the vulnerability to algorithm changes, and the need for clear tax codes recognizing creator businesses. MatPat's successful exit and advocacy efforts highlight the growing importance of the creator economy, projected to reach $500 billion by 2027.
Pinterest has appointed Matt Madrigal, an ex-Google executive, as its new Chief Technology Officer. Madrigal brings extensive experience in e-commerce and digital advertising from companies like Google, eBay, and Fanatics. His expertise in managing large-scale product listing systems and advertising solutions is expected to be crucial for Pinterest's growth, particularly in the e-commerce sector. Madrigal's appointment signals
Pinterest's strategic move to leverage his expertise in scaling technology infrastructure and monetization as the platform continues to grow its monthly active user base and influence in online shopping. With a focus on catering to Gen Z users and tapping into their shopping behaviors, Madrigal's role will be pivotal in shaping Pinterest's future direction.
Shopstar, a startup pioneered by Ori Simantov that is aiming to transform influencer marketing by allowing consumers to pay for products with social media posts instead of cash. The key points are:
shopstar is a platform that integrates with e-commerce sites like Shopify, giving consumers the option to offset product costs by posting about their purchases on social media. This approach democratizes influencer marketing by enabling anyone, regardless of follower count, to participate in brand collaborations.
The startup uses AI to assess the expected value of each user's social posts in real-time based on data from their profile and the merchant. Users then receive an upfront discount or rebate for creating branded content after receiving the product.
Ori envisions a future where paying with posts is as common as using credit cards, bridging the gap between big brands/influencers and smaller businesses/casual social media users. However, scaling this model requires advancements in areas like AI post valuation, fostering brand trust in automation, and empowering consumers to recognize the monetary value of their social presence.
The rise of wedding content creators is shaking up the traditional wedding industry. These social media professionals use smartphones to capture photos and videos during weddings, quickly editing them into Instagram-ready content for couples to share on social platforms within 24 hours. This instant gratification approach contrasts with the typical weeks-long wait for professional wedding photography. The trend is driven by couples' desire for behind-the-scenes glimpses and unfiltered moments shared promptly on social media.
While challenging photographers' roles, content creators view their services as complementary. The emerging service has seen significant growth, with industry estimates of thousands of wedding content creators operating in the UK alone. As consumer preferences evolve, this trend exemplifies the influencer economy's growing impact across various sectors.
Malaysia has announced a new licensing requirement for social media platforms operating in the country with over 8 million users, set to take effect on August 1. The move aims to combat rising cybercrime by requiring platforms to comply with Malaysian laws against scams, cyberbullying, and sexual crimes.
Failure to obtain a license by January 1, 2025 could result in legal action. While the government argues this enhances public safety online, civil society groups have condemned the plan as an abuse of power to control online expression critical of the state.
Meta has introduced AI Studio, allowing Instagram creators to develop personalized AI characters as extensions of themselves. These AI bots can answer common questions, provide links to content and merchandise, and share personal facts about the creator. Users can customize the topics their AI avatars discuss.
Meta is positioning itself as a leader in AI, viewing this creator tool as part of a broader strategy beyond enhancing social media products. The launch follows the company's introduction of a search assistant last year, addressing initial celebrity impersonation concerns by clearly labeling AI responses as originating from ""creator AI.""
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NBC is sending over two dozen social media influencers to cover the 2024 Paris Olympics, aiming to attract Gen Z viewers. The network spent a year researching and selecting creators like former Bachelor contestant Jasmine Nguyen, who focuses on lifestyle content rather than sports.
By leveraging influencers' existing followings on platforms like Instagram and TikTok, NBC hopes to engage younger audiences who have drifted away from traditional TV viewing. The strategy reflects how media companies are adapting to changing consumption habits, tapping into influencer marketing to stay relevant with digital-native consumers. NBC's unorthodox coverage approach underscores the Olympics' enduring cultural significance despite viewership declines.
Gen Z is embracing ""underconsumption core,"" a trend that promotes buying only what you need and rejecting excessive consumption fueled by influencer marketing. While influencers were once a driving force behind purchases, many younger consumers now distrust them and prefer recommendations from regular people. Economic pressures like inflation, debt, and rising costs are partially driving Gen Z's shift toward minimalism and simplicity.
Though not entirely new, this mindset reflects changing consumer behavior in response to economic anxiety, similar to shifts observed after the 2008 recession. Underconsumption core represents Gen Z's rejection of excessive consumerism and wealth displays that were once aspirational.
China is actively promoting travel vlogs by foreign influencers to counter negative Western narratives about the country. These videos, showcasing everyday experiences like eating dumplings or riding bullet trains, are widely shared on Chinese social media and praised by state media outlets. Beijing sees the vlogs as proof from Westerners themselves that criticisms over issues like surveillance and media restrictions are misguided.
With China reopening to international tourism after COVID-19 lockdowns, the government is using these carefree travel clips to project an image of a modern, developing nation at odds with Western portrayals. The vlogs align with China's efforts to attract foreign visitors while controlling the narrative around its policies and human rights record.
Social media platforms Pinterest, TikTok, and LinkedIn are exploring new partnerships with publishers to boost their ad sales. This marks a shift in the traditional relationship between tech platforms and content creators.
Pinterest is testing a program allowing publishers to sell ads on their Pinterest pages using the platform's ad auction system, sharing revenue with Pinterest. TikTok is discussing similar arrangements for custom video content, while LinkedIn has launched LinkedIn Wire, enabling news publishers to sell ads before their videos on the platform.
These initiatives aim to leverage publishers' existing advertiser relationships and attract more ad dollars to the platforms. For publishers, it offers new revenue opportunities as social media platforms increasingly keep users within their ecosystems rather than directing traffic to external websites.
Publicis Groupe is set to acquire Influential, an influencer marketing company, in a deal worth approximately $500 million. This move reflects the growing importance of influencer marketing in the advertising landscape.
Influential, which connects advertisers with online personalities, will operate independently within Publicis. The acquisition aims to provide Publicis clients with access to a larger pool of influencers and enhance content relevance through integration with Publicis's data business, Epsilon.
U.S. influencer marketing spending reached $7.02 billion in 2023, a 17.4% increase from 2022, outpacing overall digital ad spend growth. Industry forecasts predict further expansion to $9.29 billion by 2025.
This acquisition follows similar moves by other advertising holding companies, including WPP's purchase of Goat and Stagwell's acquisition of Leaders.
Influential, founded in 2013, boasts a network of over 3.5 million influencers and reported $150 million in revenue for 2023. The company has executed campaigns for major brands like Hilton, Hulu, and McDonald's.