Influence Weekly #269 - TikTok’s Secret ‘Heating’ Button Can Make Anyone Go Viral

Influence Weekly #269
January 27th, 2023
Executive Summary
  • TikTok’s Secret ‘Heating’ Button Can Make Anyone Go Viral
  • Youtuber partners with Pizza Hut to break Guinness Book world record
  • YouTuber MrBeast says he works up to 8 days non-stop on content
  • Clutch Expands Features To Help Creators Make Consistent Income
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Great Reads

The business executives quietly powering the $100 billion creator economy
Fortune has compiled a list of 11 must-know power players in the creator economy, an industry that is estimated to be worth more than $100 billion. These individuals include agents, executives, and investors who set the strategy on social platforms, broker game-changing partnerships, and ultimately turn millions of views into millions of dollars. The list features a diverse group of professionals that spans the disparate corners of the creator universe, from social media platform executives to publicists. 

One of the key players on the list is Ryan Detert, Founder & CEO of Influential. The company claims to have won significant market share by utilizing machine learning to partner with 3 million influencers and execute over $500 million in campaigns that have led to $2.5 billion in sales for brands on the platform. Another notable player is Ali Berman, Head of Digital Talent & Partner at United Talent Agency. Berman has helped internet influencers like Emma Chamberlain and Rhett & Link become as famous as their peers in the music and film industry.


TikTok’s Secret ‘Heating’ Button Can Make Anyone Go Viral
TikTok and its parent company, ByteDance, have been engaging in a manual practice known as "heating" to ensure specific videos achieve a certain number of views, according to six current and former employees of the companies and internal documents reviewed by Forbes. The practice involves boosting videos into the "For You" feed through operation intervention, which can have a significant impact on overall core metrics. This goes against TikTok's previous claims that its For You Page is a personalized feed ranked by an algorithm that predicts users' interests based on their behavior in the app.

Furthermore, employees at TikTok and ByteDance have been using this practice to court influencers and brands, by inflating their videos' view count, in order to entice them into partnerships. This suggests that heating has potentially benefitted some influencers and brands with whom TikTok has sought business relationships, at the expense of others.

Heating also reveals that, at least sometimes, videos on the For You page aren’t there because TikTok thinks the user will like them, but because TikTok wants a particular brand or creator to get more views. Without labels, like those used for ads and sponsored content, it’s impossible to tell which is which.
Campaign Insights

Exclusive: Tarte CEO Maureen Kelly sets the record straight on the brand's influencer trip to Dubai
Tarte Cosmetics, a beauty brand, is facing backlash on TikTok over its decision to host a lavish influencer trip to Dubai. The brand flew 29 influencers, including big names like Alix Earle, Meredith Duxbury, and Ellie Zeiler, to the Ritz Carlton Ras Al Khaimah in the Al Wadi desert on business class flights on Emirates. The trip, which is the latest in a series of similar trips the brand has hosted since 2015, has led to questions about the cost of the trip and its appropriateness in light of the ongoing recession. 

However, Tarte's CEO, Maureen Kelly, has defended the trip, stating that the brand has always prioritized building relationships with influencers and that the trip is a part of that strategy. The trip was also organized to launch a new foundation product, the Maracuja Juicy Glow Foundation, which is set to be released on February 10.


Youtuber partners with Pizza Hut to break Guinness Book world record
Pizza Hut, a global restaurant chain, has broken the Guinness Book of World Records' world's biggest pizza at the Los Angeles Convention Center. To celebrate the return of its Big New Yorker pizza, Pizza Hut built a 14,000 square feet pizza with layers of dough, pizza sauce, cheese and pepperoni, and cooked it with heat lamps. The pizza used more than 13,000 pounds of dough, nearly 5,000 pounds of pizza sauce, 8,800 pounds of cheese and more than 630,000 slices of pepperoni. The event was helped by content creator and YouTube star Arrack, also known as Eric Decker. The pizza's 68,000 slices were donated to charity, the current Guinness record was set in 2012. The Big New Yorker is set to return to Pizza Hut's menu on February 1st for the first time in 24 years.
Interesting People

Jessica Jerrard: Balancing It All With Lifestyle Influencer
Jessica Jerrard is a lifestyle and fashion influencer who began her career as a dancer and model. As more and more magazines were shut down, modeling became heavily based online, which prompted her to create her Instagram account. During the pandemic lockdowns, she devoted more time to content creation and noticed a significant spike in her following. Her content focuses on lifestyle and fashion topics, such as day-to-day wear and collaborations. 

She works full-time in cybersecurity and is a mother to two young daughters, and she faces challenges balancing her work, content creation, and family life. Generally, she finds that her travel content performs the best, especially when she recommends specific activities and places to visit. She has also expanded into TikTok and is finding rapid growth there. 

One of her favorite campaigns was with Romwe, a massive social-inspired apparel retailer. 

“They’re [Romwe] the clothes that I would actually buy myself, so the content and the diversity that is able to be created with their product is really good. The other campaign that really sticks to mind is where we did a smear campaign, so that was really encouraging women to go and get their [smear] test, especially women my age. It’s something that in the UK, they don’t normally push you to it until you’re about 35, but it’s so important to get checks before.”


TikTok Influencer Kennedy Eurich's Favorite Beauty Products
In an interview with POPSUGAR, Austin-based beauty, fashion, and lifestyle influencer Kennedy Eurich discussed her I don't give a f*ck era, and her 1.7 million strong social media following. Eurich is well known for her relatable and authentic approach, and she shared her thoughts on a range of topics, including her beauty routine, mental health and plastic surgery.

When it comes to her beauty routine, Eurich attributes her glow to a few key products, such as the Sunday Riley Good Genes and the Caudalie Vinoperfect Radiance Serum, and she also revealed that she is a big fan of exfoliation. She also shared that her desert-island pick is Aquaphor Healing Ointment.

On the topic of plastic surgery, Eurich revealed that she is considering getting Botox in her armpits and has also been open about the possibility of undergoing other plastic-surgery procedures, such as breast augmentation and rhinoplasty.

I don't give a f*ck era, I'm in my own skin, and I like it. - Kennedy Eurich


KSI: 'I just had a dream, self-belief and a huge work ethic'
Olajide Olatunji, known by his online alter-ego KSI, has established himself as a successful influencer, entrepreneur, rapper, and boxer at the young age of 29. With tens of millions of followers across social media, KSI has built a business empire that includes restaurants and hard-to-find soft drinks.

A new documentary, KSI: In Real Life, delves into the young man's journey to reconcile his own identity, balance fame and family, and re-evaluate his past and future. The film details KSI's origin story, starting with his teenage years as an outcast at the private Berkhamsted School before discovering a community of like-minded individuals online who shared his passion for gaming.

KSI began making his own videos and quickly learned the importance of entertaining an audience. When he realized he could make money from it, he went 110% into YouTube. His decision to pursue a career in content creation was validated when a teacher asked him how much he was making from his videos and was shocked to hear that KSI was earning £1,500 a month.


YouTuber MrBeast says he works up to 8 days non-stop on content
YouTube sensation MrBeast, whose real name is Jimmy Donaldson, revealed in a recent podcast interview that he can work on content for eight days straight. He attributes this work ethic to his success as an influencer, saying that weirdly enough, the best thing for my mental health was giving into my innate nature to work. He also noted that the most depressed he gets is when he tries to restrict his work schedule.

Donaldson, from Greenville, North Carolina, is the most-followed YouTuber in the world, with a net worth of $500 million according to Forbes. He hit 128 million subscribers in September and overtook vlogger PewDiePie to become the most-subscribed individual on the streaming platform in November.

Donaldson's channel features viral online challenges and he has been known to hand out large sums of money to followers who participate in activities like his real-life Squid Games tournament. In September, he revealed that he spends most of his time in his Greenville studio and does not have many needs for money outside of his work. He also said that he feels crazy when he hangs out with people who do not share his work ethic.
Industry News

Podcast Company Acast Launches New Features
Acast, the world's largest independent podcast company, is introducing new features such as its self-serve advertising platform and first-party data targeting. The new features allow advertisers to be more precise with their target demographic and to operate podcast advertising within their own terms and budget. 
Niklas explains, “Instead of the ad buyer making a deal with a specific set of shows, you instead say, I want to target shows that are talking about this topic, or it falls into this category of listeners that are listening in this specific location, speaking this language.”

The program is so specific that advertisers can choose keywords that hosts must say in the podcast, and Acast will match the ad to that podcast. 

He adds, “Ads are bought not on a show-by-show basis, but rather on criteria, and we call that targeting, so the platform can actually provide data when it comes to reach and demographics and targeting. There’s a set of targeting criteria, podcast categories in geographic location, I think, are the most popular. Gender and age are also demographic properties you can use to target your audience.”


NIL has changed the face of the collegiate athlete creator economy
Since the NCAA's decision, collegiate athletes have been revolutionizing the creator economy and changing the world of influencer marketing for the better. Curastory, a company that specializes in analyzing the creator economy, released a report in 2022 that revealed the highest-paid college athletes, and the results were surprising. The report found that the creator economy surrounding college athletes is female-dominated, with 85% of student-athlete creators in the US being women, and 70% of the top 10 highest-paid student-athletes being female as well.

This realization is causing brands to pivot and consider working with creators who may have been otherwise disregarded. The NCAA's approval of this new interim policy allowing collegiate athlete creators to monetize their NIL brought upon an era of transparency previously unseen in the influencer marketing industry. With the help of tools like compensation calculators, creators can now accurately define the worth of their content and their NIL.

However, many brands have yet to figure out how to handle NIL and are not actively taking advantage of its full potential. Curastory found that only 25% of collegiate athlete creators have previously secured brand deals, paid partnerships, and sponsorships, with 75% of creators still waiting for their first brand deal.

Brands can seize new opportunities by forming relationships with college athletes early, not ignoring micro-influencers, staying on top of new technology in the space, and creating powerful content that keeps up with new trends and advancements in the sector.


CJ Acquires Influencer Networking Platform Perlu
CJ, a global leader in performance marketing and division of Publicis Groupe, announced today the acquisition of Perlu, an influencer networking and technology platform based in Syracuse, New York. Perlu, which was founded in 2017 as a subsidiary of digital marketing company Terakeet, provides companies with a unique platform to network and collaborate with a dynamic community of influencers. The platform allows brands to quickly find and engage with trusted influencers in various categories, and to target their specific needs.

As part of the acquisition, Perlu will become part of CJ and integrated into its 'CJ Influence' offering, which includes global content creators and full-service CJ account teams that work on behalf of clients to drive brand performance. CJ's performance technology will also serve as the backbone of Perlu's creator community to drive further commerce growth.


YouTube renews its livestreaming deal with Coachella festival
YouTube has announced that it has renewed its livestreaming deal with the Coachella festival, one of the most popular music festivals in the United States. The partnership, which began in 2012, will continue until 2026, with the festival being streamed on the platform every year. 

YouTube will use the partnership as an opportunity to test new features and technologies, and the platform has already shared plans for the upcoming festival, including behind-the-scenes content on YouTube Shorts, livestream and playlist integrations within YouTube and YouTube Music, exclusive merchandise drops, and exclusive content for YouTube Premium subscribers. The Coachella YouTube channel has over 2.4 million subscribers.


Clutch Expands Features To Help Creators Make Consistent Income
Clutch is a technology solutions company that connects small businesses with next-generation influencers to improve their digital marketing presence. The company recently launched a new platform that allows clients to find and connect with creators themselves, rather than relying on the Clutch team to make matches. The platform also includes a dashboard system that helps clients find the best match quickly, and gives creators a better chance of being selected for a project. 

Creators have the ability to charge what they want and the platform is flexible for both creators and brands. Clients can set their budget and project details, create a profile, and request a collaboration with a creator. Once a collaboration is accepted, the creator can start working on the project and the client approves the final piece, after which the creator is paid. The Clutch process is designed to help creators make consistent income, with the company curating matches and handling payments, rather than forcing creators to go out and pitch clients on their own.


TikTok rolls out its ‘state-controlled media’ label to 40 more countries
TikTok has announced that it is expanding its state-controlled media label to more than 40 additional global markets. The label is used to alert users when videos they are seeing on the app are being published by entities whose editorial output or decision-making process is subject to influence by a government. 

The pilot began last year after Russia's invasion of Ukraine, initially labeling state-controlled media in Russia, Ukraine, and Belarus. The label will now be available in countries such as the United States, Canada, and parts of Europe. TikTok's peers have offered similar labeling systems for state-run media for years. The expansion comes amid a renewed crackdown on the short-form video app in the United States over national security concerns.
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The CEO of OnlyFans wants you to know her $1-billion-a-year business isn’t just about sex anymore - Fortune
Gan’s unorthodox background shapes how she operates as CEO. Her leadership isn’t hierarchical; she’s as happy to speak with an entry-level staffer as a celebrity considering joining the platform. At major events like Web Summit, a tech conference, or an evening gala, she pairs stage-ready outfits with sneakers. When she wears an OnlyFans beanie into Dishoom, a hip Indian restaurant in London, the host asks if she has an account. She doesn’t clarify that she’s the CEO. Instead she smiles and replies, “Yes, it’s an awesome platform.” 

So how did Gan get to the CEO seat? As CMO and CCO, she was involved in parts of the business, like company strategy, that wouldn’t typically fall under her job description. That’s a habit she picked up in earlier career stops. “All roads came back to her,” remembers Mike Curtis, a former colleague from Quest. “She had her hands in every project.” 

Gan was close to Stokely; she says they’re still friends, though a company spokesperson declined to make him available for an interview and says he is “no longer involved with the business in any capacity.” (Stokely did not respond to interview requests.) 

Colleagues describe Gan as levelheaded in a crisis, a useful trait at a startup that’s faced moments of turmoil since its founding in 2016. “She often stops and says, ‘Let’s just take a beat,’ ” says Keily Blair, who worked as OnlyFans’ outside counsel under its prior leadership and now serves as Gan’s chief strategy and operations officer. 


How Real Estate Developers Are Teaming Up With Social Media Influencers - The New York Times
Developers are teaming up with niche influencers to market luxury residential buildings by offering them entry in exchange for targeted social media posts. This new approach is a shift from the traditional method of hiring models to attend open-house parties or paying celebrities for highly filtered photos of properties. High-rise developers across the country are increasingly aligning themselves with photographers, musicians, and other influencers to gain access to a targeted audience through social media platforms such as Instagram and TikTok. 

Sutton Tower, a 121-residence condominium in New York, is one example of this new trend. The building, which is still under construction, was recently opened to photographers with social media followings to take pictures and post them to their accounts. The strategy has been effective, with a study from Matter Communications revealing that 61% of respondents are more likely to be swayed by the recommendations of an influencer than by content created by a brand itself.


Meta Pays BuzzFeed Millions to Generate Creator Content for Facebook and Instagram - WSJ
Meta, the parent company of Facebook, has reportedly paid BuzzFeed millions of dollars as part of an effort to bring more creators to the social media giant's platforms. The partnership marks a continuation of a years-long relationship between the companies, with BuzzFeed having built its business on content that went viral on Facebook. 

As part of the deal, BuzzFeed will help generate creator content for Meta's platforms and train creators to grow their presence online. The partnership comes as both companies are embracing the creator economy, in which individuals build large social media audiences by posting videos and other content, and often make money on advertising or brand sponsorships. The deal is said to be valued at close to $10 million.


Creators report extremely low earnings from TikTok’s ad revenue sharing initiative - Fortune
Creators on TikTok's ad revenue sharing initiative, TikTok Pulse, are reporting extremely low earnings compared to competitors YouTube and Facebook. In interviews conducted by Fortune with seven TikTok influencers, all of whom had followings of at least 100,000, all shared confusion about their enrollment in the program, and none reported earnings exceeding $5. 

The company announced TikTok Pulse in May 2022 as its first-ever advertising revenue share program with creators, public figures, and publishers. TikTok says that it splits ad revenue with Pulse creators down the middle, making it competitive with YouTube, which pays creators between 45% and 55% and Facebook at 55%. While TikTok parent company ByteDance does not disclose TikTok's finances, eMarketer reported in 2022 that the social media app generated over $11 billion in 2022 from its advertising business.


TikTok Bans at College Aren’t Going Over Well With Students - Bloomberg
TikTok, the popular short-form video app, has been banned at many state colleges in the US, causing frustration and anger among students. Over 25 states have placed restrictions on the use of TikTok on state-owned equipment in recent weeks, with the ban extending in some cases to public schools. A number of major higher-education systems, including Auburn University, the University of Georgia, and Oklahoma State University, have also banned TikTok from school-owned devices or campus networks. 

Students have expressed their dissatisfaction with the ban, with many calling it an encroachment on personal freedoms and an infringement of their right to make their own decisions about the risks of using a Chinese-owned app. University staff have also expressed their objections, with some stating that they use TikTok as an educational tool. The ban on TikTok has also raised concerns about security, with experts warning that the large amounts of personal information collected by the app could be used for tracking or targeting people with misinformation or influence campaigns.


Amazon Is Paying Influencers to Use Inspire, Its TikTok Competitor- Business Insider
Amazon is rolling out a new feature called Inspire, a TikTok-like vertical video feature in its app, to capitalize on social shopping. Ahead of the launch, the e-commerce giant paid influencers to make content for the new feature and create excitement around the launch. Influencers were offered payments to post short vertical videos, with one incentive offering $250 for every vertical video uploaded that was less than 30 seconds. 

Amazon also offered an incentive for influencers to post videos to their Amazon Storefront and tag products. The main way influencers can make money from Inspire is by earning a cut of sales that their videos drive, through Amazon's affiliate program which offers fixed commission rates from 1% to 20%. The Inspire feature began rolling out to select customers in the US in December and will be available to all US customers in the coming months.



 
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