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- Influence Weekly #347: TikTok’s Secret Plan To Shake Up European E-commerce: What 40 New Hires Reveal
Influence Weekly #347: TikTok’s Secret Plan To Shake Up European E-commerce: What 40 New Hires Reveal
A Fashion Influencer Sues, Alleging a Creator Copied Her 'Aesthetic
Nii Ahene
July 26, 2024
Spotlight Stories
TikTok’s Secret Plan To Shake Up European E-commerce: What 40 New Hires Reveal
TikTok Adds Custom Thumbnail Option for Clips
A Fashion Influencer Sues, Alleging a Creator Copied Her 'Aesthetic
More couples are hiring wedding content creators
Great Reads
TikTok, owned by ByteDance, is preparing to launch its in-app shopping platform, TikTok Shop, in Spain and Ireland as early as October. This move signals a restart of the company's stalled efforts to expand its fastest-growing e-commerce business in Europe. TikTok has informed partners to prepare for the debut in these two countries, with plans for further expansion across Europe in 2025.
The company has assembled a team of approximately 40 workers in Spain, one of its largest European e-commerce outposts, actively recruiting for roles like logistics and strategy. This cautious European expansion approach may aim to broaden TikTok's reach while avoiding additional regulatory scrutiny in the region. TikTok Shop combines viral video content with impulse buying, potentially challenging e-commerce giants like Amazon.com Inc.
OverSubscribe CEO Peter Yang Explains Why Fans Make The “Friendliest Investors” For Content Creators
OverSubscribe, a New York-based startup, is introducing a regulated investment model to the creator economy. It enables influencers to raise funds from their fans in exchange for a share of future revenue. Co-founded by CEO Peter Yang and Jae Kim, the platform offers two products: Accelerate for emerging creators and Amplify for established ones with over 1 million followers. OverSubscribe's approach involves an audience interest poll to gauge fan support before fundraising.
Creators have control over revenue share terms and duration. The platform aims to help creators access capital for growth initiatives like hiring staff or launching new products while allowing fans to invest and potentially share in their success. OverSubscribe also provides mentorship and guidance from industry experts. With a focus on sustainability and inclusivity across platforms and creator sizes, the company is poised to capitalize on the expanding $500 billion creator economy market.
Stagwell, a leading marketing services company, has acquired LEADERS, an Israeli digital agency, and its platform InfluencerMarketing.AI (IMAI). This move bolsters Stagwell's influencer marketing capabilities by integrating advanced AI technologies and a vast network of over 300 million creators worldwide. The IMAI platform leverages AI to rapidly connect brands with influencers, provide robust analytics, and track conversions and ROI, particularly for e-commerce brands.
The acquisition strengthens Stagwell's Marketing Cloud offering and marks the company's entry into the Israeli market. Key executives, including Eran Nizri and Yehonatan Arami, will continue to lead the acquired entities under Aaron Kwittken's PRophet Comms Tech Suite. The deal aligns with Stagwell's global expansion strategy, following recent acquisitions in the U.S., U.K., France, Brazil, and globally.
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Campaign Insights
As influencer marketing matures, micro-influencers (those with 5,000 to 20,000 followers) are commanding higher fees, with rates rising from $1,000 to $3,000 per post a few years ago to $3,000 to $5,000 today. This increase is driven by factors like greater pay transparency, improved tracking tools, demands for content usage rights and exclusivity, and the recognition of influencers' engagement rates over follower counts.
While celebrity influencer rates haven't seen the same spike, brands are offsetting rising micro-influencer costs through longer-term ambassador programs, product gifting, content repurposing across channels, and collaborating with other brands on influencer campaigns. As influencer marketing's role in ad budgets grows, with an expected $7.14 billion spent in the U.S. this year, the once niche tactic is maturing into a professional ecosystem.
Ulta Beauty is expanding its partnership with Divi, a hair care brand founded by influencer Dani Austin. The brand's debut product, a $48 scalp serum, reached $33 million in sales in its first year after launching in 2021. Divi has since added more haircare products like a leave-in conditioner and dry shampoo. With the Ulta expansion bringing Divi to over 500 Ulta Beauty at Target locations, newly appointed CEO JP McCary aims for $100 million in annual Divi sales by 2025. The brand's success is attributed to its "heart and science" approach combining Austin's personal hair loss experience with effective formulas.
Divi appeals to consumers seeking solutions for hair thinning as well as general scalp health. Beyond its direct-to-consumer focus, Divi is launching a program to enlist 1,200 hairstylist "Scalp Specialists" by year-end. Ulta's chief merchandising officer credits Austin's authentic mission as driving Divi's sales performance comparable to top haircare brands like Olaplex. The expanded Ulta partnership validates Divi as an influential emerging brand in the haircare space.
The U.S. Olympic and Paralympic Committee filed a federal lawsuit against Prime, the energy drink company co-founded by influencers Logan Paul and KSI, alleging trademark infringement. The lawsuit accuses Prime of using Olympic-related trademarks and phrases on product packaging and promotions for a flavor associated with Olympic gold medalist Kevin Durant, without permission. The committee claims Prime continued marketing the product after receiving a cease-and-desist letter, potentially misleading consumers about an endorsement.
The sports drink market is fiercely competitive, with high-profile entrants like Lionel Messi's new brand aiming to challenge Prime's popularity among young consumers. The lawsuit underscores the legal risks for influencer-led brands leveraging athlete partnerships and highlights the USOPC's efforts to protect its intellectual property.
The de-influencing trend, which began on TikTok in 2023, continues to impact consumer behavior significantly. According to a recent Harris Poll study for Intuit Credit Karma, 69% of American social media users have opted not to purchase items promoted on platforms like TikTok and Instagram.
Key factors driving this trend include distrust of influencers (32%), skepticism about product authenticity (28%), and concerns over overconsumption (26%). The movement has particularly resonated with Gen Z, with 88% reporting being "de-influenced."
This shift poses challenges for the creator economy and social commerce. While 38% of Americans still bought products seen on social media last year, fewer appear likely to do so in the coming year.
The trend has evolved into "underconsumption core," emphasizing sustainability and conscious consumption. As de-influencing continues to shape consumer attitudes, creator economy professionals may need to adapt their strategies to maintain audience trust and engagement.
The creator economy continues to gain momentum as brands collaborate with influencers and leverage user-generated content. Scrub Daddy, a household cleaning brand, has found success on TikTok by partnering with other brands like Dunkin' for limited-edition product launches. Their social media managers emphasize maintaining an authentic brand voice, giving creative freedom to the social team, and striking a balance between entertainment and product promotion.
While tools like TikTok Shop offer sales opportunities, Scrub Daddy remains cautious about overselling. As they aim for global brand recognition, the company plans to continue innovating with new products and strategic collaborations guided by their engaged online community.
Fashion retailer Pacsun unveiled its Fall 2024 “Better in Baggy” campaign, utilizing content creators from its consumer community to drive marketing efforts.
The campaign features models sourced directly from The Pacsun Collective, a group that participates in co-creation with the brand through a year-round submission process on Pacsun’s website.
Addie Rintel, Vice President of Women’s Merchandising & Design at Pacsun, reported an increased demand for novelty-embellished denim. In response, the Fall collection includes styles adorned with bows, rhinestones, leopard print, and novelty patches, reflecting direct input from the brand’s community.
The campaign highlights a significant shift in consumer preferences. Richard Cox, Vice President of Men’s Merchandising and Global Partnerships, revealed that baggy and loose-fit jeans account for over 80% of Pacsun’s denim sales.
Las Vegas's powerful tourism authority has assembled an army of over 240 paid influencers since 2022, spending over $2.2 million to promote the city across social media. Major celebrities like Jason Derulo, influencers with millions of followers, and even local content creators have created sponsored content showcasing Vegas's entertainment, cuisine, and nightlife.
This influencer marketing blitz includes Super Bowl activations and aligns with industry trends. While payment details are confidential, the spending represents a significant portion of the tourism group's $354 million tax revenue over the past year, reflecting the importance of influencer marketing in driving tourism interest.
Influencer marketing agency AJXI is carving a niche by focusing on transparent communication and effective partnerships between brands and creators. Co-founder Josh Williams highlights the industry's challenges, including pricing issues, delayed payments, and slow communication. He anticipates AI integration will significantly impact influencer selection and campaign management.
AJXI aims to leverage AI for improved communication between brands and creators while maintaining strong personal relationships. Williams advises aspiring creators to build personal brands, learn about brand needs, and share negative experiences transparently to drive positive change in the industry.
Interesting People Brought To You By Sintilllate Talent
Katie Shutt, a Newcastle-based content creator, embodies a new bread of digital entrepreneuer, bluring the line between traditional and online stardom, seamlessly blending her classical ballet training with bodybuilding expertise to forge a unique niche in the fitness and modeling industries. Her journey, marked by resilience and reinvention, serves as a compelling case study on the ever-evolving landscape of social media influence.
From losing a 36,000-follower Instagram account to rebuilding her brand with a focus on authenticity and mindfulness, Shutt's story highlights the volatile nature of digital fame and the importance of adaptability. Her recent partnership with Sintillate Talent has opened new doors, providing unique opportunities and expanding her professional network. As she envisions leveraging her platform for positive social impact, Shutt's trajectory underscores the expanding opportunities and responsibilities facing today's content creators in an era where personal branding and online influence hold unprecedented sway.
Moondust Management, founded by industry veteran Kamla Pande, is disrupting the traditional talent management model by diversifying revenue streams and fostering creator independence from social platforms. With a holistic approach rooted in digital marketing and advertising, Pande focuses on building sustainable businesses through personalized management, strategic talent selection emphasizing professionalism over follower counts, and innovative brand partnerships.
Major initiatives include an investment arm for creator ventures, collaborative projects uniting multiple creators, and industry summits fostering knowledge-sharing. As the creator economy evolves, Pande envisions increased creator-audience connections and influencer integration into mainstream marketing campaigns, transcending the siloed "influencer marketing" concept. Through its distinctive philosophy, Moondust Management is paving the way for greater creator autonomy and longevity in the creator space.
The creator economy is rapidly growing, with influencers and content creators building successful careers by sharing their passions and connecting with audiences across social media platforms. In this article, Joseph Tito, a former director and writer known as The Dad Diaries, shares his journey into wholesome family content creation.
With over 135k followers, Joseph discusses his inspirations, creative process, brand collaborations, and advice for aspiring creators. He emphasizes authenticity, consistency, and aligning with brands that share his values of inclusivity and diverse family structures. The article offers insights into the life of an influential family content creator and the opportunities in this niche within the booming creator economy.
The creator economy continues to evolve rapidly, with influencer marketing becoming an integral part of brand strategies. Detch Singh, CEO of Hypetap, a leading influencer marketing agency, shares insights on driving tangible business outcomes through "intelligent influence."
Hypetap's comprehensive approach spans four divisions: influence (campaign execution), intelligence (data analysis), content (UGC and AI-assisted), and media (integrated distribution). By enriching data and leveraging expertise, Hypetap differentiates itself in a competitive market.
Looking ahead, Singh expects creators to become formidable brands themselves, competing with established names. He advises brands to integrate influencer marketing into broader strategies and urges creators to prioritize authenticity and audience engagement. With an 80% brief closure rate and impressive growth, Hypetap exemplifies the potential of data-driven, strategic influencer marketing.
Industry News
Creative Juice, a fintech startup focused on providing specialized financing and tools for content creators, announced its merger with Rho, a business banking platform.
The merger aims to accelerate the delivery of seamless business banking experiences for creators, a growing segment of the digital economy.
Creative Juice co-founder Sima Gandhi reveals that the decision to merge came after observing that more prominent creators sought improved financial services.
The partnership with Rho is expected to provide integrated expense management and credit solutions, aligning with Creative Juice’s vision for serving the business needs of content creators.
Gandhi’s experience building the company since 2020 offers insights into YouTube economics, the evolution of e-businesses, and shifts in marketing strategies, particularly those targeting Generation Z.
YouTube recently began testing a new "Community Spaces" feature that allows creators and viewers to engage in discussions beyond traditional comment sections. This dedicated area enables sharing posts, interacting, and fostering deeper connections between creators and audiences. Select creators currently have access to the beta version, which combines elements from platforms like Reddit, Instagram Broadcast Channels, and Facebook Groups.
Community Spaces addresses YouTube's lack of direct messaging capabilities, potentially enhancing creator-fan relationships and reducing reliance on third-party platforms for community engagement. As the beta progresses, YouTube encourages interested parties to stay tuned for opportunities to participate.
TikTok has introduced a new custom thumbnail option, allowing creators to upload their own images as video thumbnails instead of using auto-generated frames. This follows the lead of other platforms like Instagram Reels and YouTube, where custom thumbnails have shown benefits in attracting more viewers.
While the impact may be less significant on TikTok's main feed, the option provides creators more control over their content presentation, particularly for profile and search visibility. Testing and monitoring engagement metrics will reveal its true value for individual creators. The update aligns TikTok with industry trends around thumbnail customization.
YouTube creators were blindsided when a new investigation revealed major tech companies like Apple, Nvidia, and Anthropic used subtitles from over 173,000 YouTube videos by 48,000 channels to train artificial intelligence models without creators' consent. The dataset includes content from top YouTubers like MrBeast, Marques Brownlee, Jacksepticeye, and PewDiePie.
Creators argue it's "theft" and they should be compensated if AI firms profit from their work. The dataset also contains subtitles from 12,000 deleted videos, raising data privacy concerns. This widespread practice highlights the need for transparency and consent when using online content for AI training.
Creator commerce platform LTK has launched new video-first shopping features called Full-Screen Continuous Video and Daily Drops. Full-Screen Continuous Video offers an immersive shoppable video feed on creators' profiles, allowing viewers to watch multiple videos back-to-back. Daily Drops will showcase the latest shoppable video content from creators who posted within the last 24 hours.
LTK reports that these updates can boost creator earnings by up to 46% as video content drives significant engagement and sales on the platform. The company cites data showing shoppers purchase twice as much from video posts and that video generates 64% more click-outs to retailer sites compared to other formats. With video consumption rising, especially among Gen Z, LTK aims to transform into a video-first platform to cater to consumer preferences and help creators monetize better.
TikTok and DistroKid announced a platform integration that streamlines the creation of official TikTok Artist Accounts for independent musicians. The partnership allows DistroKid members to establish these accounts directly from their dashboard, reducing the process from weeks to hours.
The new Artist Accounts offer features including a Music Tab, New Releases, By Artist, Behind the Song, Fan Spotlight, and Ticketing. This integration strengthens the connection between DistroKid’s artist community and TikTok’s global music fan base.
Jay Bae, Global Head of Music Partnership Development at TikTok, stated that the collaboration provides artists with tools to fuel their growth on the platform and increase music consumption. DistroKid President Phil Bauer emphasized the unique access DistroKid members now have to TikTok’s promotional tools.
Jake Paul’s men’s personal care brand, W, announced a $14 million funding round, including seed financing and a Series A led by Shrug Capital.
The investment values the company over $150 million, reflecting strong investor confidence in the brand’s potential in the men’s personal care market. W, which launched exclusively at Walmart last month, reports breaking records as the retailer’s best launch in its ‘Emerging Brands’ category history.
The company claims to have surpassed seven figures in sales and projects, reaching over $50 million by the end of its first year. Notable co-investors in the funding round include Range Group, 305 Ventures, Uphonest Capital, Quiet Capital, and Palm Tree Crew.
Influencer marketing agency Linqia has launched a new offering called "OTS" to connect brands with creators who specialize in "on the street" social media content. This genre involves creators approaching strangers to ask questions on various topics, and has gained significant traction with over 500,000 Instagram Reels and 250,000 TikTok videos tagged with related hashtags.
The OTS program initially features 50 creators like Davis Burleson and covers production logistics like obtaining release forms. Brands like CeraVe, Skittles, Prime Video, Zillow, and Progressive have already partnered with top "street interview" creators. Linqia highlights the episodic nature and extended content lifecycle of this format as key benefits for brands.
The UK communications regulator Ofcom has fined TikTok £1.875 million for failing to provide accurate data about its parental control feature adoption rates. An investigation found TikTok lacked sufficient checks for data accuracy, delayed reporting the error, and submitted incomplete information months late, disrupting Ofcom's work on a child safety report.
The fine considers TikTok's size, impact on regulators, and it being the company's first offense, reduced by 25% for self-reporting and process improvements. Ofcom warned tech firms must submit accurate, timely data when demanded to face scrutiny over safety features.
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In a significant shift for Olympic marketing, brands are leveraging new name, image, and likeness (NIL) rules to partner with college athletes competing in the Paris Games. This change, effective since July 2021, allows collegiate Olympians to maintain personal brands and secure sponsorships without risking their amateur status.
Industry experts note that Olympic athletes, especially from women's and niche sports, are outperforming traditional influencers on social media platforms. Brands see this as an opportunity to connect with younger demographics, particularly Gen Z consumers.
The Paris Olympics, running from July 26 to August 11, mark the first Summer Games where these partnerships can be fully utilized. Companies are investing billions in Olympic sponsorships and patriotic campaigns, banking on the games' prestige and athlete stories to elevate their brands.
Marketers believe this approach will lead to high-quality customer acquisition and long-term partnerships beyond the Olympics.
Ogilvy PR has launched Influence Shield, a global risk management service aimed at enhancing brand safety in influencer marketing. This comprehensive solution addresses the growing complexity and risks associated with social media and influencer campaigns.
Influence Shield offers tools including campaign risk assessment, enhanced influencer vetting, 24/7 issue monitoring, rapid crisis response, and influencer onboarding. The service combines Ogilvy's expertise in social media, influence, and reputation management.
Led by Toby Conlon, global head of crisis and risk, and Rahul Titus, global head of influence, Influence Shield is designed to build brand confidence by mitigating risks in influencer marketing.
Reddit has partnered with major sports leagues including the NFL, NBA, and MLB to boost its advertising revenue. The social media platform will host official sports content, such as game highlights and behind-the-scenes clips, and share ad revenue generated from this content with the leagues.
This move aims to attract more brand advertisers to Reddit, diversifying its revenue streams beyond its current focus on brand advertising. The company plans to expand this program to entertainment and lifestyle media companies in the future.
The partnerships emerged from discussions on enhancing sports fan experiences on Reddit, with the economic benefits being an additional advantage. Sports is one of Reddit's fastest-growing categories, with sports-centric groups seeing a 26% increase in page views over the past year.
This strategy mirrors successful models implemented by Twitter and YouTube, potentially opening up significant new revenue opportunities for Reddit in the competitive digital advertising market.
Sydney Nicole Gifford, a fashion influencer, is suing fellow creator Alyssa Sheil for alleged copyright infringement. Gifford claims Sheil copied her unique aesthetic, color schemes, fonts, and product recommendations across TikTok and Instagram after the two initially met to discuss collaborating. Gifford registered copyrights for her videos and is seeking damages up to $150,000.
The lawsuit could set a precedent protecting creators' online brands and intellectual property if Gifford wins. However, lawyers note it will be challenging to prove her aesthetic is truly unique given similarities across influencer content. Regardless of the outcome, the case may prompt more creators to take legal action over plagiarized ideas and inspire new regulations for the influencer industry.
Wedding content creation is emerging as a lucrative niche in the creator economy, with growing demand from couples seeking affordable, quick-turnaround documentation of their special day. This trend, which has gained popularity over the past two years, complements traditional wedding photography and videography services.
Wedding content creators, typically charging between $500 and $2,000, use smartphones to capture candid moments and provide couples with hundreds of photos and videos within 24 hours. This allows newlyweds to relive their day immediately and share content with friends and family.
The service also alleviates pressure on guests to document the event, allowing them to be more present. While some creators cater to couples seeking viral content, most focus on providing personal mementos.
This trend extends beyond weddings, with content creators now being hired for engagements, showers, and bachelorette parties, indicating a growing market for event-based content creation services.
A new study by United Talent Agency reveals a significant shift in Olympic viewing habits, with 78% of US consumers planning to watch the 2024 Summer Olympics on social media. This surpasses traditional TV viewership, signaling a major opportunity for content creators and influencers in the sports media landscape.
The study found that 75% of viewers are more likely to engage with Olympics coverage from celebrities, influencers, and digital creators compared to the 2021 Games. This trend is particularly strong among Gen Z and millennial audiences, who seek more personable and culturally relevant content.
In response, NBC is partnering with major platforms like Meta, TikTok, and Snap to send 27 creators to Paris for original content creation. This shift underscores the growing importance of influencer marketing and social media strategies for sports broadcasters and brands looking to capture younger audiences during major global events.