Influence Weekly #296 - MrBeast sues ghost kitchen operator for reputational damages

Influence Weekly #296
August 4th, 2023
Executive Summary
  • How Jake and Logan Paul became bankable supervillains
  • MrBeast sues ghost kitchen operator for reputational damages
  • Barbie Merchandise and Influencer Bonanza
  • Viral NPC Livestream TikToker Pinkydoll to Release Single Titled ‘Ice Cream So Good’
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Great Reads

YouTube is bringing a "mobile-first vertical live experience" to its two billion Shorts users
YouTube is enhancing its Shorts feature with a "mobile-first vertical live experience" for its two billion Shorts users. The new live format will allow creators to go live in a vertical orientation, providing more visibility on the Shorts feed. The feature will also support fan funding options such as Super Chat, Super Stickers, and channel memberships. This move is aimed at enabling multiple forms of monetization within the Shorts ecosystem, similar to platforms like TikTok and Instagram, where vertical live streams have become a significant revenue source for creators. 

Additionally, YouTube is introducing Collabs, a feature that allows creators on iOS to combine their recordings with preexisting YouTube videos or Shorts, displayed side-by-side in a split-screen layout. Android support for Collabs will follow the iOS rollout. The platform is also introducing Q&A boxes and recomposition tools to simplify the process of transforming long-form videos into Shorts. These additions align with YouTube's multiformat strategy and its focus on enhancing the Shorts experience for both creators and users


How Jake and Logan Paul became bankable supervillains
Cleveland natives Jake and Logan Paul, once known for crude pranks and wild parties on social media, have become bankable supervillains in the world of sports and entertainment. They gained fame in the early 2010s with their massive online following and expanded into music, acting, podcasting, and sports. However, their journey has been marked by controversies, including scandals and legal issues.

Despite the controversies, their polarizing image has been an asset in the world of entertainment, where villains play an essential role. Logan has co-headlined WWE events and competed in WrestleMania, while Jake earned millions in a high-profile boxing match. Their popularity only continues to grow, and their influence in various fields is undeniable.

In a new Netflix documentary, Jake Paul acknowledges being a villain on the internet and admits that in the world of boxing, being a villain is advantageous. Regardless of people's feelings towards them, the Paul brothers' impact in the world of sports and entertainment remains significant.
Campaign Insights

YouTuber MrBeast sues ghost kitchen operator for reputational damages
YouTuber MrBeast, whose real name is Jimmy Donaldson, is reportedly suing the company operating his MrBeast Burger ghost kitchen. The lawsuit comes after complaints from customers who found the food to be "revolting" and "inedible," which has caused damage to his brand name. MrBeast Burger was being sold through a ghost kitchen service called Virtual Dining Concepts. The lawsuit aims to end his contract with the ghost kitchen and seeks to address the reputational damage caused by the poor quality of the food.

The discussion surrounding the case highlights the challenges faced by social media influencers and entrepreneurs when expanding into traditional businesses. It's seen as a cautionary tale for influencers seeking to diversify their ventures without adequate expertise or quality control. While some believe that the incident may not significantly impact MrBeast's core fan base, others argue that it could indeed hurt his brand, as well as the reputations of other social media stars attempting similar expansions into unfamiliar territories.


Zara, Fossil, Superga Saw a Barbie Merchandise and Influencer Bonanza
Brands like Fossil, Superga, and Cotton On experienced a media bonanza by collaborating with the "Barbie" film and leveraging powerful influencers to promote their merchandise, according to data from WeArisma, a data analytics company specializing in measuring the marketing power of online influencers and celebrities.

During the period from March to July, content related to the Barbie x Fossil limited-edition collection accounted for 24% of Fossil's overall media value. Superga's media value was boosted by 13% due to the Barbie collaboration, while Cotton On saw an 11% increase in media value from their Barbie partnership.

Zara topped the list in total earned media value from Barbie-related content, earning $6.8 million between March and July. Other successful collaborations included Barbie x Primark with $4.6 million in media value, Barbie x Aldo with $3.7 million, and Forever 21 x Barbie with $2.4 million.

WeArisma identified the use of well-known influencers like Alessandra and Dominique as a common thread among successful brands. Jenny Tsai, the CEO of WeArisma, praised the power of co-creation and partnerships, highlighting the importance of working with the right influencers to maximize collaboration awareness among joint communities.

The surge in media value indicates that Barbie-inspired partnerships resonated on social media, particularly with Gen Z and Millennial followers. WeArisma's data and analytics continue to shape brands' decisions in investing in social media, influencers, and experiential events. The company plans to optimize its methodologies and AI usage as it scales its operations.


Top NCO says social media influencers can give US military a recruiting boost
Ramón “CZ” Colón-López, the senior enlisted adviser to the chairman of the Joint Chiefs of Staff, emphasized the importance of using social media influencers to boost military recruiting efforts in the highly competitive landscape. With only a small percentage of young Americans qualifying for and showing interest in military service, Colón-López believes influencers on platforms like YouTube and TikTok, who have a service connection, can effectively reach potential recruits under the age of 25. 

He also stressed the need to work with the film and TV industries to highlight the benefits of serving in the military and to tailor messaging that emphasizes the sense of purpose and unique experiences that come with military service. This comes in response to the military's challenges in meeting recruiting targets and competing with private sector companies for young talent.


FTC updates prompt influencer marketing to revisit murky practices, avoid hot water for failure to disclose ads
FTC's updated guidelines prompt influencer agencies to reevaluate endorsement practices for transparency and compliance. The guidelines aim to distinguish sponsored content clearly from organic posts. The $21.1 billion influencer marketing industry faces greater scrutiny, with potential fines up to $50,120 for violations. Brands must adhere to regulations to maintain consumer trust and legitimacy. 

Some have attempted to bypass guidelines, leading to public backlash and legal consequences. As the industry matures, agencies stress the importance of treating brand partnerships as businesses and working with creators who understand guidelines' impact. The FTC's move may reinforce higher standards for brand-influencer deals. In summary, the influencer marketing sector is adapting to the evolving regulatory landscape to maintain credibility and transparency. 


Cetaphil leans into makeup artists as the next wave of skin-care experts
Skin-care brand Cetaphil is shifting its marketing strategy by collaborating with makeup artists as experts. In April 2023, Cetaphil partnered with makeup artists Alexx Mayo, Hung Vanngo, and Priscilla Ono for various campaigns. By working with makeup artists, Cetaphil aims to make its consumers feel more comfortable using their products as a skincare base, especially when used by notable figures like celebrities. The collaborations have proven successful, with high engagement rates and positive feedback.

Cetaphil's approach recognizes the increasing influence of makeup artists as experts, particularly among younger consumers who seek product knowledge and value their work. This strategy allows Cetaphil to reach celebrities more organically, as they often have repeat exposure to their glam team. Additionally, social media has highlighted the expertise of makeup artists, making them valuable micro-influencers. By tapping into this trend, Cetaphil can expand its appeal and reach a broader audience. 


 
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Interesting People

Milestones And Achievements: Aaliyah Liaci's Influencer Journey
Aaliyah Liaci, a rising influencer, began her journey after high school, starting on TikTok and later embracing YouTube. Overcoming challenges, she secured brand deals with Pepsi and YSL Beauty. Aaliyah emphasizes the importance of authenticity and connecting with followers.

Challenges included managing time effectively and dealing with negative comments. Hitting 10k YouTube subscribers was a significant achievement, and Aaliyah plans to create merchandise and collaborate with brands she admires.

Regarding trends, Aaliyah notes the dynamic nature of influencers people admire and Instagram's growing popularity. She advises aspiring influencers to be strong-minded and cautious in handling criticism. Her journey reflects genuine connections with her audience and continuous growth in the influencer industry.


Who Is Suraj Singh: A Gaming Influencer's Journey Unveiled
Suraj Singh, a former delivery boy from New Delhi, India, turned gaming influencer, quit his job in 2019 after starting a YouTube channel in 2017. With over 425k subscribers now, he faces challenges like consistent content creation and competition. Suraj focuses on unique and captivating content, engaging with his audience, and providing value.

He plans to expand beyond YouTube, explore Twitch, and collaborate with other creators. Suraj credits influencer marketing for brand collaborations and anticipates the future of gaming with technological advancements.

For success, he advises continuous skill improvement, staying updated on gaming trends, and consistent posting. Upcoming plans include a new gaming series and potential travel videos. Suraj expresses gratitude to his supportive fans.


Viral NPC Livestream TikToker Pinkydoll to Release Single Titled ‘Ice Cream So Good’
Pinkydoll, the TikTok creator known for her viral "NPC" livestreams, is venturing into music. She announced a collaboration with Fashion Nova and revealed that she will release a song titled "Ice Cream So Good," one of her signature catchphrases. Pinkydoll, whose real name is Fedha Sinon, gained popularity for her robotic-style livestreams, where she responds with catchphrases to viewer donations. 

The Canadian social media star has been earning a substantial amount, reportedly up to $7,000 a day. In the TikTok announcement, she played a snippet of her upcoming single, featuring her iconic phrases. Pinkydoll assured her fans that this is just the beginning and promised to share more details about the release soon.


Meet the AI influencers ALREADY making millions from mega deals with fashion giants - could you tell they don't exist
The world of virtual influencers is booming, with computer-generated characters, made using artificial intelligence, raking in millions from deals with fashion giants. Influencers like Lil Miquela, Imma, and Shudu have amassed millions of followers and secured lucrative partnerships with top brands. The virtual influencer industry is estimated to be worth £3.5 billion and is projected to grow by 26% by 2025. Tech firms behind these AI-generated characters can earn up to £8,000 for a single social media post in collaboration with big brands. 

The realistic nature of these influencers has led many followers to believe they are real individuals. The rise of virtual characters is expected to transform the advertising landscape, providing boundless creative potential for brand storytelling and marketing. However, concerns about distinguishing between reality and fiction and the potential power of fabricated figures remain. Strict regulations are being considered to ensure transparency and accountability in the virtual influencer space.

 
Industry News

Fanatics creates livestream commerce app
Fanatics, a major sports merchandise retailer, has launched its livestream commerce platform called Fanatics Live. The app allows fans and collectors to participate in live shopping experiences, including limited-edition merchandise drops, trading card ""breaks,"" and on-location streaming. Fanatics is collaborating with sports leagues like Major League Baseball, Slam Magazine, and VeeFriends, with more partnerships expected in the future. The app is currently available for North American customers on Apple devices, and web and Android versions are planned for later this year.

Fanatics Live aims to create a trusted environment for fans, providing entertaining and high-quality programming while facilitating commerce. The platform enables consumers to engage in live chats and celebrate sports moments in real-time. For sellers, the app offers the LiveOS hub with an analytics dashboard and various livestream management tools.

The move by Fanatics follows a trend in the retail industry, with more companies integrating livestream shopping tools into their platforms. The livestream commerce market is projected to grow significantly, with predictions that it will surpass $31 billion in 2023 and reach $67.8 billion by 2026, accounting for over 5% of e-commerce, according to a report by Coresight Research.


TikTok Southeast Asia Surge Halts Premium Video Growth in First Half
A new report indicates that TikTok's viewership in Southeast Asia has surged in the first half of the year, contributing to a slowdown in the overall growth of premium video-on-demand (SVOD) in the region. TikTok is now a major driver of viewership growth on mobile and web platforms, responsible for over 70% of the increase in streaming minutes over the past two years.

During the January-June period, TikTok captured 42% of video streaming minutes, taking away market share from YouTube (-4%) and premium VOD (-2%). The overall SVOD market growth flattened, with only 7,000 new subscribers added in the region, compared to over 7 million in the second half of 2022. While platforms like Viu, Amazon Prime Video, and Netflix saw growth, the report highlights different performances between countries and platforms in the region.


How TikTok Changed the Meaning of a Million Followers
The rise of TikTok has reshaped the meaning of having a million followers, challenging the traditional notion of internet fame. As TikTok shifted the focus to short-form content and the "For You Page" algorithm, creators with high follower counts flooded the platform. Now, over 39,000 TikTok accounts boast one million or more followers, surpassing YouTube and Instagram. 

This saturation has created a subculture of influence, where some creators have dedicated followings but remain relatively unknown to the wider world. VidCon, historically centered around YouTube, now includes more TikTokers than ever before, raising questions about the true impact of follower counts. Engagement, rather than the sheer number of followers, has become a crucial metric for evaluating a creator's influence, signaling a shift in the future of influencers and content creators.


Indonesia's GENEXYZ raises $1M in seed funding led by East Ventures
Indonesian firm GENEXYZ, specializing in virtual influencers and human IPs, has completed a $1 million seed funding round led by East Ventures, with participation from Emtek, MDI, Trinity Optima, Massive Music, and Future Creative Network (FCN). The funding will be used to expand its presence in Southeast Asia and develop interactive technology for better client engagement. GENEXYZ aims to revolutionize marketing solutions with its in-house developed products using cutting-edge technology and top-tier talent. 

Co-founded by Belinda Luis and Christian Melvin in 2022, the platform allows clients to interact with virtual influencers and meta-humans, ensuring reliable and measurable interactions with audiences. It has partnered with renowned brands and launched new IPs, including a male character with unique traits for branding and educational purposes. East Ventures sees GENEXYZ as a potential game-changer in the digital media landscape, empowering brands for future consumer interactions and creating positive impact in Indonesia.


Tagger Media expands into South Africa Via partnership with Tribeez
Tagger Media, a leading SaaS solution provider for influencer marketing, is expanding into South Africa through an exclusive partnership with Tribeez, an influencer marketing and social intelligence agency based in Cape Town. With the global influencer marketing platform market projected to grow significantly, Tagger aims to support enterprise organizations and their influencer marketing strategies with a global presence.

The partnership with Tribeez was driven by their impressive roster of clients and strategic leadership in the influencer marketing space, having worked with renowned brands like Nando’s, MTN, and Pick n Pay. As influencer marketing continues to grow in South Africa, Tagger's end-to-end SaaS solution will provide brands and influencers with powerful tools and actionable insights to navigate the influencer marketing space effectively. This expansion strengthens Tagger's leadership across the continent and in the South African region.
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Great Paywalled Content

Inside TikTok's Shopping Pitch to Marketers - Insider
TikTok is promoting its Shop feature in the US, claiming it will boost sales and offering lower fees than Amazon. While some advertisers are cautious due to past negative experiences with similar offerings on social media platforms like Instagram, small businesses and entrepreneurs are showing interest. TikTok's quick rollout and adtech integrations have been appealing to smaller brands. 

Early results indicate that TikTok Shop ads are driving sales for some brands. However, big brands prefer to invest in proven sales drivers like partnerships with major retailers or their own e-commerce sites. They are hesitant to allocate resources to an unproven platform. Additionally, concerns about integration with loyalty programs need to be addressed to gain broader adoption. Despite the reservations, TikTok Shop has potential and may find success among smaller brands.


How a UCLA Quarterback Scored 30  NIL Deals, Plus the Doc He Sends Brands - Insider
UCLA quarterback Chase Griffin has become a leading figure in name, image, and likeness (NIL) deals, with 30+ brand partnerships and consulting work in the athlete influencer space. Since the 2021 NIL rule changes, Griffin's marketability soared, collaborating with companies like DirecTV, Whole Foods, and JPMorgan Chase. He donates a portion of earnings to the LA Regional Food Bank.

Aligning partnerships with personal values, economic value, and community impact, Griffin ensures a percentage of gross value goes to charity, represents himself in business meetings, and produces high-quality content for his social media. His consulting work has also become a major income source, guiding smaller companies into the athlete influencer space.

Beyond brand deals, Griffin is exploring hosting and producing unscripted TV shows, thanks to NIL opportunities that allow pursuing passions beyond sports while in college. With two years of eligibility left, he remains optimistic about his future in the NIL space. To showcase his skills to brands, he shares a three-page document highlighting creative direction and adding value to potential campaigns.
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