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- Influence Weekly #359
Influence Weekly #359
Chili’s Social Media Ads Spark $12M Copyright Infringement Lawsuit By UMG
Nii Ahene
October 18, 2024
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Spotlight Stories
Chili’s Social Media Ads Spark $12M Copyright Infringement Lawsuit By UMG
Why Creative Strategists Are Now The Hottest Job In Marketing
The Future Of Payments Mastercard Is Bringing To African Creators
Uncovered: TikTok’s Secret Strategy To Target Rural Users, Lawmakers
Great Reads
Universal Music Group (UMG) is suing Brinker International, the owner of Chili’s restaurant chain, for alleged copyright infringement over unauthorized use of music in Chili’s social media ads across Facebook, Instagram, TikTok, and YouTube.
The lawsuit filed in a federal court in Dallas claims 80 total violations involving songs by popular artists like ABBA, Ariana Grande, Justin Bieber, and others, which could result in up to $12 million in statutory damages under U.S. copyright law.
UMG accuses Brinker of lacking effective procedures to ensure its social media content does not violate copyrights and seeks a permanent injunction along with damages determined at trial. This follows a similar lawsuit earlier this year by Sony Music against Marriott International over unauthorized music use in social posts.
A new report from marketing software company Motion reveals that creative strategists are becoming crucial in performance marketing. Analyzing over $6 billion in media spend, the study found that creative quality is now the primary driver of ROI for advertising, especially in social media.
This shift is attributed to privacy protection measures and AI integration in ad distribution algorithms. Creative strategists are bridging the gap between media buying and creative teams, focusing on data-driven creative processes and consumer research.
Industry professionals from major DTC brands emphasize the importance of collaboration, strategic guidance, and consumer research in creative strategy. The report suggests that companies without creative strategists may face unclear direction and inefficient workflows.
Instagram remains the most popular social media platform among U.S. teens, according to a new survey by Piper Sandler. While Instagram tops overall usage, TikTok emerges as teens’ most liked app. Instagram usage increased 7% since the previous survey, with TikTok gaining 5%. The report suggests Meta’s AI content curation contributed to Instagram’s sustained popularity among younger audiences.
Both Instagram and TikTok continue leading for marketers targeting Gen Z, though Snapchat maintains relevance. The survey highlights opportunities for brands on emerging platforms like Pinterest’s 6% usage increase among teens. Leveraging trending apps and AI-driven content could offer brands stronger pathways to engage younger consumers.
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Campaign Insights
Digital marketing firm Round has launched a new platform called Micro.wav designed to streamline micro-influencer campaigns for the music industry. Micro.wav analyzes creators with 5,000 to 99,000 followers on TikTok, Instagram, and YouTube based on content type, music usage, location, and relevant hashtags.
This allows marketers to easily construct targeted campaigns leveraging numerous smaller influencers with highly engaged niche audiences. Major labels like Sony Music Latin, Warner Records, and Def Jam participated in beta testing. The tool reflects the industry’s growing focus on micro-influencer marketing to tap into passionate fan bases through more personalized influencer collaborations.
GLOW, an independent creative agency, is leveraging the power of fandom and fan communities to reshape brand marketing strategies. Maggie Walsh, GLOW’s Head of Strategy, shares insights on their approach, which involves identifying “fan-worthy” and “fan-fueling” elements of brands, and applying tactics from the entertainment industry to foster long-term customer loyalty across sectors.
Walsh highlights the rise of “fangirl culture,” where traditionally female-centric interests are gaining mainstream acceptance and influence. She advocates for a shift towards sustained brand investment and cultivating fandom as a pathway to long-term value creation, challenging the prevalent short-term mindset in marketing.
GLOW, an independent creative agency, is leveraging the power of fandom and fan communities to reshape brand marketing strategies. Maggie Walsh, GLOW’s Head of Strategy, shares insights on their approach, which involves identifying “fan-worthy” and “fan-fueling” elements of brands, and applying tactics from the entertainment industry to foster long-term customer loyalty across sectors.
Walsh highlights the rise of “fangirl culture,” where traditionally female-centric interests are gaining mainstream acceptance and influence. She advocates for a shift towards sustained brand investment and cultivating fandom as a pathway to long-term value creation, challenging the prevalent short-term mindset in marketing.
Mastercard, in partnership with Wowzi and Masria Digital Payments, announced a strategic five-year initiative to revolutionize payments for African content creators. The initiative introduces digital payment solutions like Watch Cards and Ring Cards, allowing creators to receive payments directly from brands, fans, and sponsors.
This move addresses the need for efficient, secure, and flexible payment options in the rapidly growing creator economy. Over 200 companies, including major brands, are already utilizing Wowzi’s AI platform to connect with the platform’s 200,000 influencers. The initiative aims to empower creators with financial tools and security to thrive in the gig economy.
A new report by CreatorIQ reveals that 94% of marketers believe creator content outperforms traditional digital advertising in driving return on investment. The average annual creator marketing spend for enterprises reached $1.7 million in 2024, a 143% increase over the past four years.
While budget constraints were previously a top challenge, measuring creator performance has now emerged as the primary roadblock. Instagram remains the dominant platform, but TikTok has gained significant ground, with 27% of organizations considering it their most crucial platform. Video content is deemed the most effective strategy, with 67% of creators using more video than the previous year.
AI is playing an increasing role, with 91% of brands leveraging it for tasks like content generation and data analysis. Brand safety, accurate measurement, and a shift towards creator-led strategies are highlighted as key future trends in the creator marketing space.
Milani Cosmetics has partnered with TikTok influencer duo The Lipstick Lesbians to promote its Highly Rated Lash Extension Mascara. The campaign features Alexis Androulakis, one-half of the influencer pair, personally endorsing and demonstrating the mascara, positioning the content as a conversation between friends.
By leveraging influencer marketing and visual product demos, the relatable, authentic campaign aims to drive consumer engagement and brand loyalty. This signals the growing importance of influencer partnerships and video-based content in reaching audiences through compelling, personalized storytelling beyond traditional advertising. For cosmetics brands competing for attention, such innovative influencer collaborations offer differentiation by fostering closer connections with consumers.
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Interesting People
Gen Z influencer Quenlin Blackwell, known for her comedy skits and 16 million followers across social media, has signed with Creative Artists Agency (CAA). CAA will focus on expanding her brand partnerships, developing new business ventures and intellectual property capitalizing on her online influence.
Blackwell’s diverse portfolio includes a guest role in an upcoming HBO comedy pilot, music video appearances, a popular YouTube series “Feeding Starving Influencers,” and collaborations with major brands like Google, Gymshark, and luxury fashion labels. Her signing follows CAA’s recent acquisition of top TikTok stars TooTurntTony and Larray, strengthening their roster of Gen Z digital talent.
Prominent tech influencer Marques Brownlee, known as MKBHD, has acknowledged significant missteps in launching his new wallpaper app, Panels. In response to user feedback about the steep subscription pricing and data tracking concerns, Brownlee is implementing changes including eliminating ads for free users, offering lower-cost subscriptions, and clarifying the app’s data practices.
He promises no AI-generated content and weekly new art drops. Brownlee’s candid 15-minute video addresses shortcomings transparently as he aims to improve the app’s value proposition for users.
Rebecca McAllister, a model-turned-influencer, has built a platform for mental health advocacy through authentic social media content. Her relatable vulnerability forged connections, leading to brand partnerships aligned with her interests like fashion and beauty. Despite struggles with insecurity, her supportive team helps manage the demands of public life.
McAllister founded the 4Mindz Foundation to create safe spaces for sharing inspirational mental health stories through events. She aims to expand her modeling career while continuing to use her influence for positive impact. Her advice: stay true to yourself, set boundaries, and learn from mistakes.
Tech startup Dreamwell AI, co-founded by former YouTuber Kazzy Khazaal and Anthony Bobsin, raised $2.3 million in pre-seed funding led by Tim Draper’s VC firm Draper Associates. The company develops AI tools to streamline influencer campaign processes.
Its platform automates up to 90% of the work in setting up influencer campaigns, including identifying suitable creators, assessing their value, and initiating contact based on a brand’s target audience and budget. The AI handles tasks like finding influencers, evaluating metrics, estimating engagement rates, and sending outreach emails, though human involvement is still required for negotiations and ensuring brand safety.
Dreamwell’s proprietary data and AI model differentiated it from simply repackaging existing AI solutions like OpenAI’s GPT, attracting investor interest. The company’s demonstrable revenue and Khazaal’s creator background also strengthened its investment pitch.
Industry News
Leaked internal documents reveal TikTok’s strategic efforts to expand its user base in rural areas and influence key lawmakers. The documents outline how TikTok analyzed preferences of new “country rural” users and identified popular interests like baseball, Walmart, boats, and beer to tailor content.
Additionally, the company listed influential accounts to persuade specific politicians of TikTok’s value, such as highlighting Kentucky small businesses for Senator Mitch McConnell. The documents also discuss TikTok’s approach to user addiction, beauty filters, and content amplification based on perceived attractiveness.
TikTok has objected to these revelations, stating the lawsuit misrepresents its safety commitments. The legal action alleges TikTok falsely claimed its service is safe for youth, focusing on the platform’s addictive features to boost revenue.
Whalar Group, a global creator enterprise, has acquired UK-based talent management firm Sixteenth. The merger brings together Sixteenth and Whalar Talent, forming a new entity representing over 300 creators across various verticals. Victoria Bachan, formerly President of Whalar Talent, will lead the expanded team as President of Sixteenth, reporting to Whalar Group’s co-CEO James Street.
The acquisition provides Sixteenth’s creators access to Whalar Group’s end-to-end support system, including career development, community engagement, educational tools, and data insights. The combined entity aims to empower creators to amplify their voices, expand their influence, and build long-lasting careers in the creator economy.
The creator economy, valued at an estimated $250 billion and projected to double in the next few years, has become a highly sought-after occupation, especially among Gen Z. Universities like Cornell, Duke, Tulane, and USC are now introducing courses, clubs, and degree programs dedicated to the art and business of content creation.
These programs cater to both students who want to work with creators and those who aspire to become creators themselves. Topics covered include analyzing research on creator culture, applying practical content creation skills, understanding the influencer ecosystem from a marketing perspective, personal branding, acquiring followers, and navigating the business aspects of the industry.
With the growing demand for influencer marketing and the rise of the creator economy, these academic programs aim to equip students with the necessary tools and knowledge to succeed in this rapidly evolving field.
Creator economy veterans Dominic Smales and Simon Goodman have launched GloMotion Studios, a new venture focused on reviving highly engaging creator content. GloMotion aims to bridge the gap between creators, brands, and audiences by producing premium, creator-led content powered by brands. The founders recognized a decline in audience engagement as the creator economy expanded rapidly, with brands often prioritizing reach over entertainment value.
By combining Smales’ expertise in managing top digital creators and Goodman’s creative experience as an award-winning showrunner, GloMotion Studios seeks to reintroduce entertainment and recreate the high engagement levels once characteristic of social media. The company plans to develop original content formats and IP for digital distribution, while adhering to an “audience-first” approach.
GloMotion has resonated with creators seeking to scale up content quality, brands looking to engage audience interests, and platforms recognizing the need for better engagement. Smales envisions a purified creator economy driven by talented, dedicated content creators connecting with and entertaining audiences.
Dhar Mann Studios, known for its inspirational scripted videos with a massive online following, has appointed media veteran Sean Atkins as President and COO to spearhead the company’s expansion.
Under Atkins’ leadership, the studio plans to broaden its content offerings into new genres, venture into live events, merchandising, and strategic partnerships. Sean Atkins brings extensive experience from media giants like MTV, Disney, HBO, and Yahoo to drive growth through strategies rooted in audience engagement and feedback.
Forbes is hosting its inaugural Creator Upfronts event on October 28-29 in Los Angeles, aiming to connect top marketers and brands with influential voices in the creator economy. Notable speakers include creators like Khaby Lame, Dani Austin, Jordan Howlett, and brand leaders from companies like Colgate-Palmolive, Tubi, Gymshark, Gap, and Walmart.
The two-day event will feature interactive sessions, panel discussions, and creators pitching their content strategies to industry leaders. Forbes will also release its 2024 Top Creators list highlighting 50 high-earning influencers across platforms like TikTok, YouTube, and Instagram. The event is sponsored by Walmart Creator as the Title Sponsor, and Whalar Group and TikTok as Supporting Sponsors.
ByteDance, the parent company of TikTok, has launched a powerful web crawler called Bytespider that is aggressively scraping online data at an unprecedented rate. Bytespider collects web data roughly 25 times faster than OpenAI’s GPTbot used for training ChatGPT, and 3,000 times quicker than Anthropic’s ClaudeBot.
This massive data grab suggests ByteDance is intensifying efforts to develop advanced AI capabilities, potentially to enhance TikTok’s search functionality and challenge Google’s dominance in digital advertising. As ByteDance faces pressure to sell or have TikTok banned in the U.S. over national security concerns, its accelerated AI push through relentless web scraping raises questions about the company’s strategic motives and future plans..
Twitch has unveiled “Enforcement Notes” to provide 24/7 clarity on its Community Guidelines. The notes address key policy areas like safety, illegal activities, content authenticity, and intellectual property rights. They offer clarifications on prohibited content, account policies, gambling restrictions, and Twitch’s approach to off-service conduct.
The platform aims to update the notes when new trends or violations arise, ensuring transparency and helping creators navigate the rules effectively. This move underscores Twitch’s commitment to a safe and authentic streaming experience for its community.
BrandLens is an emerging influencer marketing platform enables brands to co-create video content with users worldwide through a template-based system. Founded by Gugo Martikyan, Vahagn Khachikyan, and Vahag Karayan, BrandLens leverages AI technology to solve the common problem of creators not adhering to brand guidelines.
The platform offers an intuitive interface and AI-powered analytics, serving various customer segments such as agencies, brands, sports teams, and local government entities. BrandLens empowers influencers and brands through controlled collaboration, allowing brands to maintain control over their messaging while providing room for creativity.
The article highlights successful campaigns across different sectors, including internal activation for educational institutions, trend replication for marketing agencies, and product integration for retail brands. BrandLens positions itself as a B2B SaaS platform, offering flexible pricing models. As the creator economy evolves with AI advancements, BrandLens sees opportunities in verifying human-created content, leveraging the enduring value of authentic content.
X, formerly Twitter, announced a significant shift in its Creator Revenue Sharing Program. Starting November 8th, the platform will pay monetized creators based on engagement from X Premium subscribers rather than ad views. Creators will earn revenue when Premium users reply, repost or like their content, eliminating the need for ads in monetized posts.
This move aligns with X’s strategy to focus on subscription revenue amid reported advertising declines. While enabling potentially unrestricted content, it could lead to higher payouts for creators as X Premium subscriptions grow. However, a recent report showed TikTok surpassing X as a news source among younger audiences, highlighting the evolving social media landscape.
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Vox Media is expanding its podcast offering into a multichannel franchise model. The media company recently signed a partnership with YouTuber Kenny Beecham, marking its 10th podcast deal this year.
Beecham’s basketball podcast “Small Ball” will join Vox’s network, leveraging video, social media, and events to create more sponsorship opportunities beyond just audio. This reflects the industry’s shift towards a multiplatform approach, capitalizing on video’s growing role in podcasting.
By combining audio, video, social reach, and live events, Vox can surround these podcasts with immersive branding touchpoints for advertisers. The strategy aligns with longstanding media best practices but is still relatively new for podcasting. As video becomes integral to the medium, it unlocks additional inventory and revenue streams for podcast franchises.
OnlyFans CEO Keily Blair reports the platform has paid out over $20 billion to creators since its launch eight years ago. While known for adult content, Blair emphasizes the platform’s diversity, hosting everything from comedy specials to sports interviews.
The company’s recent financial filing shows impressive growth, with gross revenue up 19% to $6.63 billion and pre-tax profit increasing 25% to $658 million for the fiscal year ended November 30, 2023.Despite this success, OnlyFans has no plans for an IPO, preferring to focus on creators rather than shareholders.
The platform’s model, which gives creators 80% of all payments, has attracted diverse talent like comedian Whitney Cummings and tennis pro Nick Kyrgios.Blair stresses OnlyFans’ commitment to safety through strict ID verification and opt-in viewing, positioning it as a secure space for content monetization.
True Religion, the iconic Y2K denim brand, is orchestrating a comeback through influencer partnerships and a renewed focus on its women’s category. The brand has launched its second collection with influencer Jadya Cheaves, aiming to attract millions of new consumers.
CMO Kristen D’Arcy reports that previous influencer campaigns have boosted website traffic by 30-40% and store visits by 20-30%. The brand is leveraging a multi-channel marketing approach, including loyalty programs, SMS updates, and social media campaigns.
True Religion has also introduced “Team True,” a brand ambassador program featuring NIL athletes, influencers, and WNBA stars. The company aims to achieve $500 million in revenue, triple online sales, and reach 50% e-commerce sales by 2025.
TikTok’s decision to end its licensing deal with Merlin, a group representing over 500 independent labels, and negotiate individually with labels raises concerns. TikTok cites fraud issues, but indie labels allege it’s a “divide-and-conquer” tactic to pay lower royalty rates.
Some labels report getting worse terms than the previous Merlin deal. With TikTok’s immense popularity but relatively low payouts, indie labels risk losing a major promotional platform if they don’t accept TikTok’s new terms by November 1st. The move underscores the power imbalance between TikTok and the indie music community.
New data reveals Instagram’s growing dominance among US teens, according to Piper Sandler’s latest survey. The Meta-owned app has reached an all-time high in usage, with 87% of teenagers using it at least monthly, up from 80% last year. TikTok follows as the second most-used platform at 79%, while Snapchat has declined to 71%.
Interestingly, TikTok remains the most liked app despite lower usage. Instagram’s success may be attributed to new features targeting younger users, such as notes, story comments, and enhanced DM interactions.
However, this teen engagement comes with scrutiny. Both TikTok and Meta face legal challenges from state attorneys general over concerns about young users’ mental health. The shifting landscape highlights the intense competition for teen attention in social media, with potential implications for advertisers and investors in the creator economy.