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- Influence Weekly #350 - How TikTok And Snap Are Wooing Influencer Agencies, Challenging Meta’s Dominance
Influence Weekly #350 - How TikTok And Snap Are Wooing Influencer Agencies, Challenging Meta’s Dominance
Google taps YouTube stars to hawk its new Pixel phones
Nii Ahene
August 16, 2024
Spotlight Stories
White House hosts Creator Economy Conference to talk AI, privacy
How TikTok And Snap Are Wooing Influencer Agencies, Challenging Meta’s Dominance
Google taps YouTube stars to hawk its new Pixel phones
Instagram Quietly Rolls Out Location Sharing To Select Users
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Great Reads
Apple has mandated that the creator platform Patreon use its in-app purchasing system and remove all other billing systems from its iOS app starting in November 2024. This change will impose a 30% App Store fee on all new memberships and purchases made through Patreon's iOS app. Creators using first-of-the-month or per-creation billing plans must switch to subscription billing to continue earning through the iOS app.
Patreon has introduced tools to mitigate the impact, including an option to automatically increase prices on iOS to offset Apple's fee. The company is transitioning all creators to subscription billing over a 16-month period. While controversial, Apple's move aligns with past antitrust issues it has faced over its App Store policies.
The White House hosted its first-ever Creator Economy Conference, bringing together 100 digital content creators and industry professionals. President Biden addressed the gathering, emphasizing the importance of creators in shaping future communication. Key officials, including deputy Treasury Secretary Wally Adeyemo and domestic policy advisor Neera Tanden, discussed pressing issues like AI, fair pay, data privacy, and social media's impact on mental health.
This event highlights the growing significance of the creator economy, estimated by Goldman Sachs to reach $480 billion by 2027. It also underscores the challenges faced by policymakers in regulating Big Tech and social media platforms like TikTok.
The conference aims to give creators a voice in Washington, addressing the nuanced legal and policy issues facing the industry. This move comes as the Biden administration navigates concerns over TikTok's data privacy and potential ban.
TikTok and Snap are intensifying efforts to attract influencer agencies by offering exclusive perks and data access as they compete with Meta's established platforms for social media ad spending. While Instagram and Facebook remain top for overall usage, TikTok and Snap rank in the top three for Gen Z users.
Major influencer agencies like HireInfluence, CreatorIQ, and Sprout Social have recently partnered with TikTok and Snap to access exclusive features, data insights, and creator discovery tools as over 80% of influencer campaigns now span multiple platforms. As short-video platforms gain traction, tech giants are vying for a bigger share of the lucrative influencer marketing industry.
Campaign Insights
Indian online travel company MakeMyTrip launched a new advertising campaign featuring non-Indian content creators who speak fluent Hindi.
The campaign highlights various benefits of using the platform for international travel and stars Drew Hicks, Yechan C. Lee, and Agu Stanley Chiedozie.
These creators, known for their Hindi fluency and humorous social media content, appear in separate ads promoting specific MakeMyTrip features.
This campaign marks the second instance of a brand collaborating with Hindi-speaking non-Indian content creators, following a previous WakeFit ad featuring Hicks and Chiedozie.
Tom Parry, the newly appointed President of UMI Games, Whalar Group's gaming division, discusses the growing importance of gaming platforms like Fortnite, Roblox, and Minecraft in reaching Gen Z and Gen Alpha audiences for brands. He highlights UMI Games' mission to bridge the gap between marketing budgets and millions of young gamers by creating immersive brand experiences within gaming environments and integrating brands into popular user-generated content (UGC) games.
Parry shares his vision of empowering game creators and leveraging their creativity to deliver authentic brand collaborations. He also provides a case study of a successful campaign for Sky Broadband, exemplifying UMI Games' dual approach of building new branded games and partnering with creators of popular UGC games. Overall, the interview offers valuable insights into the evolving creator economy in gaming and the opportunities for brands to connect with younger audiences through innovative and engaging gaming activations.
Tinder, the leading dating app, has launched a new social media campaign called 'Long Story Shorts' that celebrates real-life love stories from the app's users through humorous and charming short videos. The campaign features six true romance tales reenacted by popular comedic content creators like Dalia Elizabeth, Kendahl Landreth, and Mitsy Anderson.
Each story is infused with romcom elements and humor, showcasing the modern digital meet-cutes that lead to genuine connections on Tinder. Created in collaboration with Movers+Shakers agency, the campaign delivers short-form video content across Instagram and TikTok, aiming to highlight the serendipity and magic of finding love through the dating app platform in an engaging and relatable way for social media audiences.
The social media marketing landscape is shifting significantly as platforms like Meta and X revise their focus and algorithms, penalizing news content and link posts. This forces publishers and marketers to diversify their promotion strategies across other apps like Reddit, LinkedIn, Snapchat, and more. Data shows Reddit's organic traffic has increased sevenfold, while SMB ad spend on Snapchat is up 85% as budgets splinter from X's advertiser exodus.
Though Meta remains viable with evolving AI ad tools, brands are exploring alternative platforms now ahead of the holiday season to capitalize on emerging consumer attention and engagement trends across social media.
Google has leveraged YouTube star power to promote its new Pixel phones in an innovative marketing approach. Following the "Made by Google" keynote, the tech giant hosted an online After Party featuring prominent YouTube personalities.
Hosted by Keke Palmer, the event included segments with creators like Amelia Dimoldenberg, Trixie Mattel, Monét X Change, and Sean Evans. The 30-minute stream showcased Google's new phone models and features through popular YouTube formats such as "Hot Ones" and "Sneaker Shopping."
This strategy highlights the growing influence of digital creators in mainstream marketing. By tapping into YouTube's talent pool, Google effectively demonstrated its products while capitalizing on the creators' established audiences. The event also underscores the evolving landscape of product launches, blending traditional keynotes with interactive, influencer-driven content to engage younger demographics.
The Paris Olympics proved a viral sensation on TikTok, racking up over 1.3 million posts - a staggering 1,828% increase compared to the Tokyo Games. Norwegian swimmer Henrik Christiansen, dubbed the "Muffin Man," and U.S. pommel horse star Stephen Nedoroscik emerged as breakout stars.
TikTok's global head of sports partnerships revealed these digital trends reflect how the Olympics have become ingrained in pop culture, driven by the platform's ability to launch viral moments and stars. With the Milan Winter Games next year and the Los Angeles edition in 2028 expected to feature celebrity appearances, TikTok is positioned to amplify the Olympics' cultural resonance.
Interesting People
Ryan's World, the popular YouTube channel, is venturing into the theatrical movie space with its first feature film "Ryan's World The Movie: Titan Universe Adventure." The 80-minute action-comedy blends live-action and animation, featuring the Kaji family alongside other YouTuber stars. Ryan, the young creator behind the billion-dollar Ryan's World empire, shares insights on the challenges of transitioning from YouTube videos to a structured movie production process, highlighting the need for patience and the steep learning curve involved.
The film aims to incorporate elements that have contributed to Ryan's World's success on YouTube, such as family involvement and creator collaborations, while presenting a new frontier for YouTube creators in the cinema space.
Steven He, a former actor turned content creator, has built an empire with over 26 million followers across platforms by strategically adapting to audience preferences. Starting on TikTok during the pandemic, He went viral with relatable comedy sketches before expanding to YouTube. His "EMOTIONAL DAMAGE" meme catapulted his success, leading him to treat content creation as a research-driven business focused on trends over personal interests.
He meticulously studies platforms, leveraging short-form's virality for exposure before cultivating communities on long-form YouTube. Prioritizing authenticity in brand deals, He's strategic approach involves platform-specific content tailored to audience demands. Despite fame's pressures, fan interactions motivate him, underscoring his transition from creator to savvy entrepreneur rewriting entertainment rules.
Zoé Mahfouz's journey from shy student to viral TikTok star showcases her knack for relatable comedy content. The French influencer transitioned from class projects in school to leveraging trending events and diverse life experiences across Paris, London, and Los Angeles to craft a multi-platform presence. Her parody of the overlooked volunteer at the Paris Olympics opening ceremony exemplifies capitalizing on niche moments and turning them viral within 24 hours.
Mahfouz credits improv skills from her acting background as critical for authentic content creation, allowing her to adapt quickly. She's candid about challenges women face with online criticism but believes versatility across mediums is vital in entertainment today.
While her videos often perform differently across platforms, Mahfouz tailors an English approach to reach a broad global audience. With a master's degree upcoming and fiction/film projects in development, the 22-year-old is poised for further creative pursuits fusing her acting talents and online content expertise. Her rise showcases how keen observations and an ability to pinpoint resonant premises can rapidly translate to viral fame.
The rise of creator economy platforms has enabled a 25-year-old car enthusiast, Jackson Kessler, to build a multimillion-dollar YouTube brand called Captain Crankshaft. Through relatable and authentic automotive content across multiple platforms, Kessler transformed his passion for car projects into a thriving multimedia business. Despite challenges like high production costs and intense competition, he employs strategic multi-platform tactics, balancing technical aspects with broad appeal. Kessler prioritizes integrity in influencer partnerships, collaborating with brands he genuinely uses and believes in.
Looking ahead, he aims to launch a high-end car air freshener brand and create a sustainable ecosystem where creators can thrive without solely relying on sponsored deals. Kessler's journey exemplifies the opportunities and hurdles of niche content creation and influencer-driven businesses in today's creator economy.
MrBeast, the popular YouTuber with over 300 million subscribers, has initiated an internal investigation into his company's culture and practices. This comes after allegations of impropriety, unsafe working conditions, and controversial past comments surfaced.
MrBeast has hired a law firm to probe specific claims against a former collaborator and plans to implement mandatory sensitivity training. He will also hire key executives like a chief HR officer to strengthen the company's infrastructure. Despite the controversies, MrBeast's content continues to perform exceptionally well, with a recent video reaching 100 million views faster than almost any other in the channel's history.
Industry News
The U.S. Federal Trade Commission (FTC) announced a final rule prohibiting the sale, purchase, and use of fake reviews and testimonials, including AI-generated ones.
The Commission emphasized that case-by-case enforcement without civil penalty authority may not sufficiently deter deceptive practices.
The final rule, approved unanimously by the Commission, follows public comments and an informal hearing held in February 2024.
Universal Music Group (UMG) and Meta have announced an expanded global agreement that extends UMG's music licensing across Facebook, Instagram, Messenger, Horizon, Threads, and WhatsApp for the first time. The deal aims to bring creative and commercial opportunities for UMG artists and songwriters across Meta's platforms.
Key aspects include expanding to WhatsApp, enhancing short-form video monetization, addressing unauthorized AI-generated content, and ensuring fair compensation for human creators. This partnership builds on their 2017 agreement and explores new channels for licensed music within Meta's ecosystem, including virtual reality experiences and user-generated content.
TikTok is introducing a new feature called TikTok Spotlight, which aims to drive engagement with upcoming movie and TV show releases. When a user encounters content related to a film or series, an anchor link will appear, leading to a landing page with details like the title, synopsis, cast information, and links to purchase tickets or stream the content.
While intended to enhance user experience, concerns arise over increased commercialization and potential conflict with TikTok's existing piracy issues, where full movies and shows are illegally shared on the platform. The move raises questions about prioritizing promotional features over addressing copyright violations present on the app.
Instagram is quietly rolling out a new location sharing feature to select users, allowing them to share their real-time location on a map with specific groups like close friends or mutual followers. This opt-in feature, previously spotted in development as "Friend Map," represents a potential revival of Instagram's earlier photo map capabilities discontinued in 2016 due to low usage.
While details on post duration and public sharing remain unclear, the test aligns with Instagram's history of adapting popular features from rivals like Snapchat's Snap Map. Safety and privacy controls are promised to be paramount in the feature's development as Instagram explores ways to boost engagement.
The creator economy is playing a pivotal role in inspiring back-to-school and dorm room purchases this year. As ecommerce grows for this retail segment, younger parents and college students are turning to influencers on TikTok, Instagram, and Pinterest for product discovery and visualization. Brands like Amazon, Walmart, Target, and Urban Outfitters are leveraging popular content creators to showcase school and dorm essentials through shoppable videos, home tours, and interactive mood boards.
These authentic, relatable influencer partnerships effectively drive purchasing decisions for this convenience-seeking demographic. With college back-to-school sales forecasted at $37.33 billion in 2024, tapping into the creator economy has become an indispensable marketing strategy.
Recent efforts to crack down on TikTok and similar platforms miss the mark by overlooking the root causes and implications of the influencer boom. While lawmakers cite national security and youth protection as primary concerns, they fail to address why millions of young Americans view influencing as a viable career path.
Societal factors, including limited job prospects and a desire for meaning and recognition, drive this trend more than platform algorithms. Banning or heavily regulating these apps could disrupt the livelihoods of many creators without addressing underlying issues.
Critics of influencer culture often ignore its economic impact and the entrepreneurial opportunities it provides. A more effective approach would be to create better alternatives for young people to find purpose and financial stability outside of commodifying their lives through digital content. This perspective challenges policymakers to consider the broader socioeconomic context when addressing concerns about social media platforms.
As athletes increasingly leverage their social media influence for brand partnerships, a new breed of agency has emerged that combines traditional sports management, influencer marketing, and content production services. Companies like Klutch Sports Group, Status Creative, Ten Toes, and B-Engaged represent athletes while facilitating brand deals and creating sponsored content. This hybrid model caters to the evolving nature of athlete sponsorships, which now resemble influencer campaigns focused on social media reach rather than long-term ambassadorships.
These agencies ensure branded content feels authentic while meeting advertisers' demands. With the rise of women's sports and the NCAA's NIL ruling, opportunities are expanding for agencies specializing in managing female athletes and college stars. As the creator economy intersects with sports marketing, these agencies bridge the gap between athletes, brands, and platforms, shaping the future of athlete endorsements.
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With the 2024 presidential election approaching, brands are increasingly wary of working with influencers who discuss politics. Marketing agencies are pitching new AI-powered tools to help advertisers assess the "brand safety" of social media personalities. Captiv8's tool analyzes online mentions to predict if an influencer will discuss elections or controversial topics, grading them from A (very safe) to C (caution advised).
Viral Nation's "risk profiles" scan years of posts and videos to detect protest signs or weapons. As influencer marketing grows, these tools aim to help brands navigate the minefield of politics while still tapping into influential online voices to promote products.
A new study found Instagram accounts focused on political topics like voting, reproductive rights and advocacy for marginalized groups saw a 65% decline in viewership after Meta implemented a policy in March to reduce the spread of political content on the platform. The researchers from Accountable Tech analyzed data from five major progressive accounts with over 13 million total followers over a three-month period following the policy change.
Meta's move aimed to make Instagram a less combative environment, but significantly impacted the reach of prominent voices sharing political information and perspectives. The findings raise questions about platform moderation practices and their impact on public discourse.
M&A expert John Lambros of Houlihan Lokey predicts a shift in the creator economy's landscape. He argues that the future growth lies not with individual influencers, but with companies offering versatile content creation tools for a broader customer base, including businesses.
Lambros emphasizes that successful startups must provide multiple services rather than single-feature offerings. He also highlights the importance of catering to small and medium-sized enterprises, which have substantial budgets for content creation and analytics tools.
While exit opportunities remain challenging in this nascent industry, companies offering comprehensive creation toolkits, like Squarespace, are attractive M&A targets. Lambros notes that private equity firms are still adapting to the creator economy's unique business models.
Despite major platforms like TikTok and YouTube dominating monetization, Lambros sees growing demand for startups that can help users navigate the evolving digital content landscape.