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- Inside the Company Minting the Next Generation of Youtube Stars
- Global influencer marketing spend expected to hit $34 billion in 2023
- Paramount to help brands create influencer content around Super Bowl, sporting events
- YouTube Adds Generative AI Tools for Creators
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Great Reads
YouTube Adds Generative AI Tools for Creators
On Thursday, YouTube unveiled a set of new creator tools, incorporating generative artificial intelligence (AI) to strengthen its dominance in the creator domain. YouTube CEO Neal Mohan emphasized that these advanced AI tools aim to democratize creativity by making complex tasks simpler. He stressed that such tools shouldn't be exclusive to a select group but accessible to all.
One of the highlighted tools is "Dream Screen," designed for YouTube Shorts. This experimental generative AI tool allows creators to insert backgrounds or short videos into their content using a simple written prompt. For instance, Mohan demonstrated the technology by inputting "a panda drinking coffee," which instantly generated a corresponding video image.
The Billionaire Keeping TikTok on Phones in the U.S. - WSJ
TikTok's presence in the U.S. market has been fiercely debated among political circles. Many Republicans in Congress, supported by Club for Growth, have opposed legislation targeting the app. Jeffrey Yass, a significant political donor and one of the third-largest conservative donors in 2022, strongly advocates for TikTok, labeling it as embodying "free speech and innovation." ByteDance, TikTok's parent company, valued at $300 billion, aims to go public, but a U.S. ban could cripple its IPO value.
Concerns stem from the potential for the Chinese government to instruct ByteDance to spy on American users. In response, TikTok has proposed a $1.5 billion plan to separate its U.S. operations from China. The platform's lobbying efforts have led to a shift in legislative focus: from banning the app to securing users' personal data. This change in momentum is seen as a result of TikTok's influence campaign, emphasizing that many of ByteDance's shareholders are Americans, including some influential conservatives.
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Campaign Insights
How CeraVe's influencer event doubled as an enormous content studio
CeraVe hosted its "Acne Academy" in New York City, a fusion of educational sessions on acne and a platform for influencer content creation. The event, held at the Glasshouse venue, attracted over 350 global influencers, including TikTok stars Charli D’Amelio and Zach King. Its design, with branded photo-op zones like oversized product replicas, optimized content creation opportunities.
The blend of medical experts and social media personalities has been a cornerstone of CeraVe's marketing strategy since 2019. Franny, an influencer focused on dyslexia awareness, praised the venue's content-friendly atmosphere. While the event emphasized influencer engagement, especially with Gen Z, CeraVe also invests heavily in TV advertising. Adam Kornblum, CeraVe's global senior VP, underscored the aim: translating the offline event experience into online buzz.
Sofía Sanchez de Betak Links With Max&Co
Travel and style aficionado, Sofía Sanchez de Betak, unveils her "Souvenirs of Life" collection in collaboration with Max&Co., drawing inspiration from her extensive global travels. Sanchez de Betak, originally from Buenos Aires and now a citizen of the world, is renowned for her travel guide “Travels With Chufy: Confidential Destinations” and her Chufy fashion brand, both celebrating diverse cultures.
Her Max&Co. collection is a blend of influences from bazaars and markets she's explored, ranging from Marrakech to Istanbul and Avignon. Sanchez de Betak explains the essence of the collection as an amalgamation of experiences, encounters, and sceneries that shape a traveler's identity. The "Souvenirs of Life" range showcases pieces like boho shirtdresses, safari jackets with ikat motifs, upcycled denim overshirts, and accessories imbued with Mexican and African designs.
NYX turns Gen Z stars into Universal Monsters for Halloween campaign
NYX Professional Makeup's latest Halloween initiative, “Mon-Star Bash,” collaborates with Universal Pictures, turning Gen Z influencers into iconic movie monsters using makeup artist Mimi Choi’s skills. These transformations will feature in a digital music video. Notably, musician Landon Barker becomes The Werewolf, while model Reginae Carter morphs into one of The Mummi Twins. NYX is also delving into the digital realm, partnering with Ulta Beauty’s Roblox space, Ultaverse, offering Halloween-themed games and avatar customizations.
Additionally, an original song will complement the campaign, reflecting a tactic that brands like E.l.f. Cosmetics have leveraged, especially on TikTok. To amplify reach, influencers will showcase their “Mon-Star” makeovers. Denée Pearson, NYX's global brand president, remarked on the brand's enthusiasm for innovative Halloween campaigns. The “Mon-Star Bash” aims to captivate the digital-first Gen Z audience.
Paramount to help brands create influencer content around Super Bowl, sporting events
Paramount is innovating its approach to advertising by offering brands a unique opportunity to create custom social advertisements centered around athletes during prime sporting events, including the Super Bowl, which is set to broadcast on Paramount's channels CBS and Nickelodeon. This initiative will be driven by a new division named CBS Sports Creator Studio, which will focus on various sports assets, including the NFL, PGA, college football, and basketball.
CBS Sports Creator Studio is offering brands three primary strategies, as explained by John Bogusz, the Executive VP of Sports at Paramount Advertising: Influencer Collaborations: Brands can collaborate with Paramount to produce influencer content tied to significant events. This could involve a celebrity or sports influencer sharing moments from a pre-game event or an exclusive gathering. Behind-the-scenes with CBS Sports Talent: Advertisers will have the opportunity to work alongside CBS Sports personalities to provide exclusive, behind-the-scenes content during its TV broadcasts. White Label Influencer Partnerships: Brands can align with an influencer, not under Paramount's banner, to generate content that correlates with a specific sport, season, or event.
Pan Pacific Hotels Group inspires experiential travel with global influencer campaign
Pan Pacific Hotels Group has embarked on a worldwide influencer marketing initiative for its three sub-brands: Pan Pacific Hotels and Resorts, PARKROYAL COLLECTION Hotels and Resorts, and PARKROYAL Hotels & Resorts. The "#YoursToDiscover campaign" invites international content creators to spotlight the unique experiences each hotel offers, supported by a currency termed “discovery dollars” linked to the Group’s loyalty program.
The promotional push covers ten destinations and leverages brand-centric taglines tailored for each sub-brand. To magnify engagement, a social media contest invites fans to win 1,000 discovery dollars by sharing their preferred hotel from the Group. Concluding on 30 October 2023, the campaign culminates the Group’s partnership with creative agency Bread Butter Bacon, which began late 2022 and oversees social media strategy across nearly 50 properties under the three brands.
Unilever establishes Creator Council to support influencers with sustainability content
Unilever has launched an independent Creator Council to empower beauty influencers with knowledge and tools for crafting content about sustainability. This step is a testament to the company's commitment to sustainability, echoing their corporate responsibility and aligning with current consumer sentiments about green initiatives.
The inception of the Creator Council stems from a concerning discovery: a staggering 84% of content creators hesitate to touch upon sustainability in their posts and stories. Unilever's research, which delved into the views of 232 content creators across major platforms - YouTube, TikTok, and Instagram - unveils this significant gap. While nearly two-thirds of these creators are generating more content about sustainability than before, there's an underlying apprehension of inadvertently promoting misleading green claims, commonly termed 'greenwashing'.
The Creator Council will encompass prominent figures from diverse domains, spanning travel, beauty, and lifestyle. Dr. Adanna Steinacker, a prominent digital influencer and medical doctor, stands as the first announced member. The anticipation builds as the full member list remains under wraps, scheduled for a future reveal.
Gen X marketing—brands are missing out on TikTok’s fastest-growing generation
GroupM's Wavemaker has identified a significant gap in brand marketing targeting Gen X (people aged 41-56) on platforms like TikTok. Its "Finding the Gen X Factor" report revealed that only 13% of Gen X feel represented by social media ads, while 92% use social media daily. Gen X also represents a burgeoning 28% of TikTok’s user base. Yet, just 5% of brand influencer campaigns aim to reach them. Gen X has considerable purchasing strength, inheriting $70 trillion from the Baby Boomers.
According to Wavemaker Senior Insight Director, Zoe Bowen-Jones, Gen X proves more valuable as consumers, demanding longer, community-based content to secure their trust and loyalty. They undergo diverse life stages, each influencing spending habits. Unlike Gen Z, Gen X prefers genuine online portrayals without image filters, responds to informative content, and values brand trust. Influencer campaigns featuring Gen X creators notably resonate more with this demographic, with 43% increased brand website visits. Brands, such as L’Oreal Paris, targeting Gen X successfully have seen remarkable engagement results.
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Interesting People
Glitter Magazine | Alix Earle Announces New Podcast 'Hot Mess'
TikTok sensation Alix Earle is about to debut her podcast, "Hot Mess", in partnership with Alex Cooper's Unwell network. A celebrated influencer, Earle promises a candid weekly recount of her adventures and intriguing insights for her listeners. Famed for her engaging "Get Ready With Me" clips and tales of her vibrant Miami lifestyle, Earle's popularity skyrocketed following her 2020 TikTok inception. Her openness, from discussing acne and cosmetic procedures to mental health, has garnered her massive appeal.
The 22-year-old star, having recently graduated from the University of Miami, hinted at new endeavors before revealing her podcast collaboration with Cooper on September 14. "Hot Mess" aspires to continue Earle's genuine connection with her audience. Covering themes from post-college life to the hidden facets of influencer glamor, she aims to make listeners feel as if they're just chatting with a friend. Unwell, established earlier this summer targeting Gen Z, also recently signed TikTok creator Madeline Argy. Cooper, the network's founder, envisions mentoring emerging podcasters with her expertise.
TikTok star Heidi D'Amelio in New Orleans for Fashion Week
TikTok star, Heidi D'Amelio, is set to dazzle at New Orleans Fashion Week. Formerly a Lafayette native, Heidi's transition from a stay-at-home mom to the "First Family of TikTok" has been meteoric. This year, her appearance is particularly significant due to her deep-rooted connection with Tracee Dundas Baker, the brains behind the event, and Heidi's former modeling mentor.
The highlight will be Heidi showcasing the D’Amelio Footwear line, a family brand emphasizing style and comfort. Since Charli D'Amelio, Heidi's sister, took TikTok by storm in 2019, the entire family has skyrocketed to global prominence, venturing into music, podcasts, and even reality TV. With Charli's net worth at a whopping $20 million, the family's influence is undeniable. Yet for Heidi, this journey is as much about reconnection as it is about fame, making this Fashion Week an emotional and professional landmark.
Why Lipstick King’s US$11 product comment sparked uproar
China's top livestreamer, Austin Li Jiaqi, known as the "Lipstick King," faced immense backlash after chastising a viewer who commented on the steep price of a US$11 eyebrow pencil he was promoting on Alibaba’s Taobao livestreaming platform. The Florasis eyebrow pencil is pricier than competitors, and in response to the viewer's concerns, Li controversially suggested the viewer needed to reflect on their own financial progress.
This occurred amid China's economic struggles post-Covid-19, with notably high youth unemployment rates. Although Li issued an apology on Weibo, many saw it as insincere. Since the incident, he lost over 1.5 million followers combined on Taobao Live and Weibo. Criticisms pointed out that Li appeared to have forgotten his beginnings as a cosmetic sales assistant, accusing him of being out of touch with ordinary people's realities. The fallout comes just before Singles’ Day, China's major shopping event, potentially impacting his sales performance this year.
Vivek Ramaswamy joins TikTok in pitch to young 2024 Republican voters
Presidential candidate Vivek Ramaswamy has taken to TikTok in an effort to engage younger voters for the 2024 election. Influenced by Jake Paul, Ramaswamy aims to break GOP echo chambers and reach a demographic anxious about older candidates' stamina and potential health complications. Despite Ramaswamy being the youngest presidential candidate at 38, only 5% of voters aged 18 to 29 support him.
His lack of political experience raises concerns, and some criticize his stage performances as being potentially non-serious for international diplomacy. Ramaswamy, a former biotech entrepreneur, emphasizes his non-politician status and has employed unique campaign tactics to appeal to Gen Z and millennials. However, he trails significantly in the polls, with Trump leading and DeSantis as a notable middle-ground option.
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Industry News
The deepfake avatars who want to sell you everything
Deepfake avatars powered by AI are reshaping the landscape of livestream e-commerce, a phenomenon that has already swept across China. Livestream e-commerce in China is so prominent that over 500 million Chinese people watch it regularly, accounting for more than a quarter of all online purchases. However, this trend hasn't resonated with the Western audience, despite attempts by companies like TikTok to introduce it. The game-changer could be AI-generated livestreamers.
Brands are now using affordable AI tools to create deepfake streamers that can fluently speak various languages, eliminating the need for human talents who understand the intricacies of livestream e-commerce. An AI-translation product, HeyGen, even clones the speaker's voice and syncs lip movements, making translations appear incredibly natural. This technological advance could potentially help Chinese businesses break into international markets by navigating language and cultural barriers, even if livestream e-commerce doesn't immediately gain traction outside of China.
TikTok debuts new tools and technology to label AI content
With the rising use of AI in content creation, TikTok has unveiled a new feature allowing creators to label AI-generated content. This move aims to bring greater transparency and address concerns that AI content can mislead or confuse viewers.
While TikTok already mandates the labeling of synthetic media, such as realistic deepfakes, to help viewers understand and prevent misinformation, there are instances where AI-generated content blurs the line between real and fabricated. TikTok's latest tool not only assists creators in adhering to the synthetic media policy but also in labeling other content primarily produced or significantly modified by AI. This tool will be presented to creators when uploading videos. If used, a notification will appear below the video's username indicating its AI-generated nature. However, there's no penalty for not labeling AI content that doesn’t violate the existing synthetic media guidelines.
Electrify raises $85 million to invest in long-form YouTube content
London-based Electrify Video Partners has secured $85 million from Capital D to invest in and acquire YouTube channels specializing in long-form educational content. Founded in 2021 by Ian Shepherd, Owen Maher, and Justin Reizes, Electrify collaborates with successful creators, offering financial support in exchange for partial channel ownership and a share of profits. Their investments aim to triple the involved YouTuber's revenue and profit.
Electrify's portfolio includes channels like Veritasium and Astrum, with a combined total of over 30 million subscribers and 10 billion views. This new funding represents Electrify's first institutional investment. Capital D, in return, will obtain a significant minority stake, aiming to enhance Electrify's channel acquisitions and technology capabilities. Electrify emphasizes its commitment to long-form, factual, and brand-safe content and seeks further collaborations with ambitious video creators.
Global influencer marketing spend expected to hit $34 billion in 2023
In 2022, global influencer marketing spend surged 21.5% to hit $29 billion, with predictions pointing to $34 billion by 2023, according to PQ Media. A notable 76% of this growth originated in the U.S., largely driven by sponsored content from micro- and macro-influencers. These terms are redefined by PQ Media: macro-influencers cater to broad sectors like fashion, while micro-influencers focus on niches, such as footwear.
In 2022, macro-influencers saw investments exceeding $5.3 billion, and brand ambassadors garnered $4.4 billion. Spending on micro-influencers jumped over 30%, offering brands a cost-efficient alternative to top-tier influencers. Although U.S. growth was robust, countries like India experienced a remarkable 33.6% increase in influencer marketing spend. This booming industry growth is attributed to its wider metric perspectives and its seamless integration into omnichannel campaigns.
TikTok wants to re-invent shopping for Gen Z and cut Amazon out of the picture
TikTok, the renowned Chinese video app, is challenging Amazon's e-commerce dominance in the U.S. However, its new venture, TikTok Shop, has met with initial skepticism due to concerns over low-quality products and restrictive customer data policies. While the platform showcases items through videos for a more genuine shopping experience, many products are perceived as subpar.
Influencer Brooke JuLyn emphasized these quality issues, comparing them unfavorably to Amazon. Additionally, brands express unease about TikTok's reluctance to share crucial customer data, a concern intensified by its Chinese ownership amidst U.S. data protection scrutiny. Despite this, as Amazon delves into the social realm, TikTok's foray into e-commerce could find success if it taps into its AI strengths and meets the shopping habits of its Gen Z user base.
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Great Paywalled Content
How Influencer Tezza Barton Turned Her Photo-Editing App to a Media Powerhouse - Insider
Tezza Barton, widely recognized as Tezza, is not just an influencer with a massive following of 1.2 million on Instagram but is steadily carving out a digital empire. She launched a photo-editing app named "Tezza" in 2018, which has amassed over 20 million downloads and boasts 2.5 million active users monthly. The Tezza app stands parallel to other image editing software like Adobe's Lightroom or VSCO.
The distinctive feature of the app lies in its filters, transforming regular iPhone photos and videos to give them a 35mm film or old camcorder vibe. The primary revenue for the app comes from subscriptions. Tezza Pro and Tezza Luxe, offering unlimited photo filters and video-editing tools, respectively, are priced between $40 to $60 for annual subscriptions. There's also a free variant for users who might not want the premium features. The company projects its annual recurring revenue to be an impressive $32 million.
TikTok Plans Seattle Beachhead for Shopping Expansion — The Information
TikTok is intensifying its move into e-commerce, setting its sights on Seattle — the very stronghold of e-commerce giant Amazon. In an aggressive attempt to extend its online shopping capabilities, TikTok has confirmed its move to the Seattle area and is offering handsome relocation packages to existing employees from other TikTok locations. New recruits for the U.S. e-commerce division will be mandated to be based in Seattle. Senior leaders from ByteDance, TikTok's parent company, are seen more frequently in the Seattle vicinity.
Notably, Bob Kang, a top shopping executive at ByteDance, has been visiting Seattle more often. This strategic move aligns with TikTok’s broader return-to-office strategy, which follows the company's significant growth during the COVID-19 pandemic. While most of TikTok's U.S. employees, numbering around 7,000 as of March, are set to work in-office three days a week, those associated with TikTok Shop, its e-commerce arm, are expected to be present five days a week. However, due to current office space constraints, this mandate is slightly relaxed in Seattle.
Inside the Company Minting the Next Generation of Youtube Stars - WSJ
Heralded as the digital-era's answer to Disney and Nickelodeon, pocket.watch optimizes content from child YouTubers, facilitating deals with major streaming platforms. They also help produce original content that airs on both their subscription service and other networks. Their approach has evidently been effective, with claims of generating over $185 million in revenue and moving $1 billion worth of retail products globally since their inception.
Chris M. Williams, pocket.watch's CEO, aims to establish the company as the "Nickelodeon of the future." He envisages a symbiotic relationship between young YouTubers and their fans, with the former evolving their content in sync with the maturing tastes of their audience. One notable success story is Ryan’s World, which transitioned from toy reviews to diverse content like science experiments and animation. Creators who've partnered with pocket.watch appreciate the stability it brings to the otherwise erratic world of online content creation. While YouTube remains a primary income source for most, additional revenue streams through pocket.watch’s distribution and ad earnings can be substantial.
How TikTok Stars Like B. Dylan Hollis are Reshaping the American Cookbook - The New York Times
TikTok stars are revolutionizing the cookbook industry. While the cookbook market has seen a dip, those by TikTok creators are soaring on best-seller lists. For instance, B. Dylan Hollis, who began sharing vintage American recipes on TikTok, had his debut cookbook, “Baking Yesteryear,” become the best-selling book in the US, backed by his 10.2 million TikTok followers. Despite the overall decline in cookbook sales by 14.5%, TikTok influencers like Joshua Weissman and Joanne Lee Molinaro have seen remarkable sales from their published works.
The shift indicates that readers now prioritize a connection with the author's personality over just the recipes. Although TikTok has enabled many amateur cooks to land book deals, the platform's influence on actual book sales is unmatched compared to previous internet trends. Moreover, TikTok not only aids in selling but also influences the design and content of these cookbooks. However, as more TikTok creators venture into the publishing world, there's a growing concern about oversaturation and credibility in the market.
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