Influence Weekly #279 - The Influencer Industry Is Having an Existential Crisis

Influence Weekly #279
April 7th, 2023
Executive Summary
  • The Influencer Industry Is Having an Existential Crisis 
  • LTK bets on boosting TikTok and Instagram posts
  • Orangetheory Brings Viral TikTok Fitness Trend To Their Studios
  • Bandier & Body Roll’s collaboration proves to be TikTok gold
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Great Reads

The Influencer Industry Is Having an Existential Crisis - The Atlantic
The influencer industry is facing an existential crisis as content creators struggle to turn their value into meaningful leverage. While social media platforms such as Instagram and TikTok have courted influencers with juicy cuts of ad revenue, the wide middle range of creators has complained about product changes, opaque algorithms, and arbitrary content-moderation decisions that limit their reach. Attempts by influencers to organize have not been very successful, with the biggest influencers having nothing much to gain from joining forces with those below them. 

TikTok creators have discussed the possibility of unionizing around pay and transparency issues, and some influencers have been incorporated into Hollywood’s Screen Actors Guild, but progress has been modest at best. What content makers require is a cultural shift where creators are seen as workers and see each other in the same way. This has already started with platform ad-revenue sharing, but a crucial last step is needed. As the influencer industry faces a crucial turning point, something has to give.


Milani Cosmetics CMO Jeremy Lowenstein on TikTok's dupe culture and that Depp-Heard trial video
Milani Cosmetics CMO, Jeremy Lowenstein, has discussed the brand's marketing strategy with regards to TikTok's dupe culture on this week's episode of the Glossy Beauty Podcast. The brand has seen several products go viral on the social media platform thanks to influencers who are obsessed with finding cheaper alternatives to expensive beauty products. Lowenstein explains that Milani Cosmetics does not use the term 'dupe' in brand-led content but allows consumers and creators to use it. 

He also acknowledges the sales spike power of TikTok, saying that campaigns and inventory must be adjusted to respond to viral product moments. Lowenstein also addressed a viral TikTok video the brand made during the Depp-Heard trial last year. He explains that an influencer had tagged the brand in the video, which showed one of Milani's products being used in the trial. The brand stitched the video to the original and stated that the product had been launched at a different time, not taking sides in the trial.
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Campaign Insights

LTK bets on boosting TikTok and Instagram posts with new paid spend feature
LTK, the creator commerce platform formerly known as Rewardstyle and Liketoknow.it, has launched a new paid spend feature called LTK Boost, which allows brands to put paid spend behind content from its roster of influencers via TikTok, Instagram, and Facebook. The move is aimed at streamlining the paid media process for brands and creators, and boosting the performance of creator content on social media. LTK reported that $3.6 billion worth of goods were sold through its influencer affiliate links in 2022. 

LTK Boost has been rolled out in beta to a test group of 10 brands, including Ulta Beauty, Adidas, and HSN, which saw ""up to 4X sales growth."" Sandbo, VP of brand partnerships at LTK, noted that brands take a variety of approaches with this feature, ranging from automatically boosting all commissioned content to evaluating influencers' posts for virality potential.


Orangetheory Brings Viral TikTok Fitness Trend To Their Studios For National Walking Day
In honor of National Walking Day on April 5, 2023, Orangetheory Fitness is bringing the viral TikTok trend #TreadmillStrut to their 1,500+ studios worldwide. Orangetheory is partnering with TikToker Allie Bennett, who created the workout routine, to launch the Strut in their studios. The workout calls on participants to walk on a treadmill to the beat of a pump-up playlist, incrementally increasing speed every time the song changes. Allie worked closely with Orangetheory's expert Fitness team to adapt the Strut to the power walking treadmill portion of the limited-edition class. 

DJ Truth, a member favorite, created a specialty playlist inspired by Bennett's song selections that puts participants in the strut-to-the-beat zone. Orangetheory is a heart rate-based workout that uses treadmills and motivating beats to boost metabolism, burn fat, and improve cardio metabolic, cardiorespiratory, and mental health. The #TreadmillStrut class will feature heart-pumping inclines and beat-driven power walking. Orangetheory members can sign up for the class on April 5 for free.


Constellation Brands taps Tastemade to help draw new customers
Constellation Brands, the owner of beer, wine and spirits brands, has formed a multimillion-dollar, multiyear partnership with media company Tastemade to produce shows that revolve around Constellation’s brands. Tastemade will create a content studio and produce content that centers on food, travel and home and design for Constellation’s brands. The first program will be an on-the-go travel series called “Street Somm”, which will follow a sommelier to cities throughout the US to explore food and wine pairings. 

The partnership comes as Constellation looks to attract younger consumers, especially for its wine business. For the three months ended in November, Constellation’s net wine sales decreased 7% year over year from $506.2 million to $470.5 million. Following a 2019 divestment of dozens of lower premium brands, mostly wines that cost under $11 a bottle, Constellation has been reshaping its portfolio to focus more on ultra-premium fine wine and craft spirits.


YouTube to let advertisers target Gen Z based on trending music
YouTube is set to launch a new ad offering later this year that will allow brands to target Generation Z audiences based on trending music. By using artificial intelligence, YouTube plans to create "lineups" of content related to popular songs that are resonating with the younger demographic. Brands will be able to run ads against these lineups, which could include music videos, shorts, or audio content, and will be available for purchase across YouTube, YouTube Music, and YouTube Shorts.

 According to Nicky Rettke, VP of product management for YouTube ads, the platform has seen a surge in Gen Z viewership, with music playing a big part in that trend. YouTube's new offering will enable advertisers to connect with this demographic and help them capitalize on the growing popularity of audio on the platform. The move comes after YouTube introduced a podcast lineup last year that allows brands to buy ads specifically in podcast videos.


Bandier & Body Roll’s collaboration proves to be TikTok gold
Bandier, a fitness apparel brand, and Body Roll, a lymphatic drainage machine company, have collaborated to promote Bandier's Wesley collection and Body Roll's studios on TikTok. Bandier invited 25 influencers to experience the seamless collection while trying out Body Roll in New York and Miami. Influencer Madison Rae (35,000 TikTok followers) posted about trying the machine while wearing the Wesley set. Actor Lili Reinhart (5.9 million TikTok followers) later stitched Rae's post with a skeptical facial expression, garnering 9.6 million likes and 32,000 comments, and has been viewed more than 70 million times. 

The success of the event led to Bandier and Body Roll continuing their partnership. Bandier brought two Body Roll devices to its Upper East Side store for a services-centered pop-up, and the store tripled its usual sales. The pop-up will run for at least a few months. Bandier has been a pioneer in experiential retail, with its first store opening with a dedicated workout space.
Interesting People

Step inside beauty influencer Emira D'Spain's glamorous and Barbie-inspired closet
Beauty influencer and model Emira D'Spain, with more than one million TikTok followers, invites In The Know into her glamorous and Barbie-inspired closet in New York City. D'Spain describes her style in three words: glam, sexy, and fun, and expresses her personality through her clothing. Her favorite designers include Chanel Oberlin, Christine Quinn, and Elle Woods. D'Spain is 5'11" tall and loves wearing 6-inch heels to feel even taller. 

She shows off her favorite bags, including an Hermes Birkin 25 in Rose Azalee, a Louis Vuitton from the Spring collection, and a Chanel that she bought herself for Christmas. D'Spain's favorite pieces of clothing include a stunning little heart dress from Aria and a red House of CB dress. She recommends starting with shoes when planning an outfit and advises considering texture and color to build a look around a mood.


How Jeneé Naylor Went From Retail Store Employee to One of the Top Black Fashion Influencers
Jeneé Naylor, known as High Low Luxxe on social media, has made a name for herself as a top Black fashion influencer. Starting out as a retail store manager at one of the biggest department stores in the US, Naylor has now amassed over 374k followers on Instagram. Despite obstacles such as feeling like she always has to over-excel and spending countless hours ensuring her content is top tier, Naylor has found her footing and is showing the world that it’s okay to wear what you want without feeling like you're doing “too much” or being "too loud". 

In an interview with EBONY, Naylor discussed her first introduction to fashion, obstacles faced as a Black influencer, and her favorite fellow Black fashion influencers. She also talked about her career-defining moments, such as hosting the Hanifa Digital FW22 Presentation and Nordstrom’s Live Anniversary Sale Lunchtime Livestream. In the next five years, she plans to continue creating thoughtful and purposeful content while also working on her personal brand.


KSI Apologizes for Racial Slur, Takes a Break From Social Media
British YouTuber and rapper KSI, whose real name is Olajide Olayinka Williams JJ Olatunji, has apologized after using a racial slur in a recent Sidemen video and announced a break from social media. The video was a parody of the UK game show "Countdown" where contestants form words using nine letters from stacks of tiles. KSI formed the word “P**i,” a derogatory term used to describe people of South Asian origin in the UK, which caused outrage on social media.

Many leading arts practitioners from the South Asian community criticized KSI and his fellow Sidemen for the offensive language, with some threatening to take action against them. The video has since been removed from the Sidemen YouTube channel and KSI issued an apology on Twitter, admitting that he had been "messing up a lot" lately and that he needed a break from social media. The incident has sparked a conversation about the use of offensive language and the responsibilities of influencers and celebrities in the public eye.
Industry News

Influencer courses like Miss Excel and Damon Dominique’s can teach you what college can’t
Influencers are capitalizing on the online course boom, offering to teach people how to acquire valuable skills or make more money in their existing professions. These courses are typically hosted on online platforms like Teachable or Kajabi and cost anywhere from a few hundred to thousands of dollars, depending on the duration and complexity of the course. The courses are completed independently, meaning that students can enroll and complete the coursework at any time. 

Coursework includes pre-recorded videos, worksheets, and content that the creators develop beforehand. Kat Norton, known as “Miss Excel,” started offering online Excel courses in 2020, which she sells for $297 per course. Norton was surprised to discover that the courses quickly outpaced her corporate salary, allowing her to quit her day job and work as a full-time course instructor. Others have also found success in teaching, including travel YouTuber Damon Dominique, who offers language courses on Teachable.


Thousands of Gen Z creators are using Fanfix to monetize content and interact with fans
Fanfix, a Patreon competitor, is attracting thousands of Gen Z creators who are looking to monetize their content and interact with fans. Fanfix offers subscription-based content monetization that allows influencers to earn money directly from their followers. The platform only allows clean content and aims to provide a safe space for creators and users under the age of 18. Fanfix has attracted more than 10 million users, including 3,000 creators. 

The average annual income for active creators is $70,000, and Fanfix claims to have paid out $11 million to creators so far. The platform generates revenue by taking a 20% commission fee. Fanfix also offers features like “Tip-to-DM,” personalized videos, and message blasts. Fanfix is human-moderated and only accepts creators with a follower count of 10,000 or more who fit the platform's brand image. The company projects to reach $50 million in payouts by the end of the year and plans to be profitable by Q1 2024.


BuzzGuru launches Famesters influencer marketing agency
BuzzGuru, the all-in-one influencer marketing platform, has announced the launch of its independent influencer marketing agency, Famesters. The agency provides a full cycle of influencer marketing services for businesses of all sizes and has a data-driven approach to running campaigns, coupled with a human approach to clients and influencers. The move to launch Famesters comes after years of success as part of the BuzzGuru ecosystem, and the agency has a commitment to excellence that has earned it a reputation as a reliable contractor and partner. 

Famesters' client portfolio includes Opera, AtlasVPN, Yager, Konami, Netease, Wargaming, Gaijin, FxPro, and 1XBET, among others. With a profound experience in the industry, Famesters is committed to delivering top-notch results through data-driven strategies that are designed to maximize ROI for each campaign. The launch of Famesters marks an important milestone for BuzzGuru as it further establishes them as one of the leading providers of influencer marketing services in the industry today.
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Great Paywalled Content

Help Me Move? I’ll Pay You in Instagram Likes - WSJ
Moving companies are jumping on the influencer marketing trend by offering free or discounted moves to social media influencers in exchange for promotional content. Roadway Moving, a New York-based moving company, has become a popular choice for influencers with its fleet of colorful trucks and cheeky taglines. In exchange for coverage on Instagram and TikTok, influencers get free or discounted moves, while companies receive exposure to new audiences and a boost in branding. 

To determine which influencers receive discounts or free moves, companies consider factors such as follower count, engagement, distance of the move, and the amount of belongings that need to be moved. While influencer moves make up a small fraction of the moving business for most companies, they can still result in a flood of both sponsored and organic posts from paying customers. Moving with a company also allows influencers to sit back and document their experience for their followers without having to pack and move their belongings themselves.


Instagram Creator Marketplace Has Low Rates, Few Brands: Influencers - Insider
Instagram's Creator Marketplace, a tool to connect brands and creators for sponsored content, has received criticism from influencers who say the platform lacks traction with brands and offers low pay rates. The marketplace, which launched in July 2022, is currently in its "testing phase" and is still invite-only to US creators. Many creators have expressed disappointment with the tool, with some citing issues such as a lack of available campaigns and low pay rates. According to documentation shared with Insider, some of the projects listed on the marketplace offer store credit, gift cards, or $100 worth of products, leading some creators to feel the rates are unreasonable.

Creators have also criticized some brands' listings that require retaining the rights to the content. Critics say that platforms like Instagram's Creator Marketplace, which allow brands to set rates, can be exploitative hubs for creators less seasoned with contracts and creative terms of use. Recent data from Hashtag Pay Me showed that creators were paid almost three times more on average when making deals directly with brands than through Instagram and TikTok marketplaces.

Creators have called for the marketplace to attract more brands, especially bigger name brands. One solution is tapping third-party partners like influencer-marketing agencies. Meta, Instagram's parent company, said it is always exploring potential partnerships and will continue to register eligible brands that express interest in joining the marketplace. However, it is unclear when the marketplace will move from being a "test" to a permanent feature.


Where Did the TikTok Headband Come From? - WSJ
A fluffy pastel headband has become a status symbol among TikTok influencers, particularly those who post skin-care and beauty videos. Dubbed the “skin-care headband” or “GRWM headband,” it is made of terry cloth and features plush bumps all around to keep hair out of the face during a skin-care routine. The trend started when skin-care brand Versed included the headband in its influencer PR packages. Influencers and followers alike soon began to covet the accessory, and dupes began to appear on Amazon. 

Some sellers on resale site Poshmark have listed official Versed headbands for as much as $98. The headband’s popularity has made it a rite of passage for young influencers. Pamela Valdez, a content creator and college student, received a pastel-pink headband in a Versed PR package last fall, and says that receiving the headband is a sign that “you know you’ve made it.” Versed occasionally makes its headbands available on its website for $18, with fans buying up to 2,000 in 24 hours. A limited edition version made from a different material is expected to be released this summer.

 
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