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- Private Equity Likes and Subscribes to the Influencer Economy
- FTC influencer marketing warning may disrupt brand and creator deals
- Dove, animated influencer promote mental health ahead of Thanksgiving
- TikTok is America's next major news source
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Great Reads
TikTok is America's next major news source
TikTok has rapidly grown as a source of news for Americans, with 14% now getting news from the popular short-video app according to Pew Research. Notably, 32% of adults age 18-29 rely on TikTok for news, representing massive growth since 2020. However, the format focuses more on commentary versus reporting straight news.
Additionally, TikTok's highly-personalized algorithms mean users often see news related to their interests rather than a full picture. This has raised concerns over TikTok furthering the siloing of audiences, limiting the range of news people receive. Still, professional journalists are increasingly adopting TikTok to better engage younger audiences. But overall, TikTok seems ill-suited for serious news consumption and risks creating ideological echo chambers. Given TikTok's meteoric rise with 150 million U.S. users, challenges remain in balancing its strength as an entertainment platform with any aspirations as a news outlet.
Influencers earn more money on sexy sponsored posts — here’s how much they’re paid
A new study analyzing 500 of Instagram's top influencers found that those who post more sexually suggestive sponsored content earn higher pay. Professor Sonia Gaenssle of Erasmus University Rotterdam classified images with over 50% skin exposure as semi-nude. She found that on average, one additional nude photo resulted in a 4% revenue boost per post for influencers. With top stars earning up to $16,000 per sponsored post, that translates to over $1,600 more per nude image.
The pay bump held true for both male and female influencers. However, men tended to command higher prices per post while women scored more brand deals overall. The study indicates consumers’ demand for sexualized Instagram content. Businesses capitalize on that appetite by paying influencers thousands extra for skin-baring shots. The findings raise ethical questions around objectification and idealized body image promotion. But for influencers, sex clearly sells when leveraged for sponsored content.
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Campaign Insights
Scoop: Biden's team weighs joining TikTok to court young voters
President Biden's reelection campaign is privately considering joining TikTok to reach more young voters ahead of the 2024 election, according to sources. While most Republicans avoid the platform due to data security concerns over its Chinese ownership, many prominent Democrats avec already established a presence on TikTok to connect with youth voters who could be crucial to the party's success. Biden so far has tried benefiting from TikTok without an official account, relying on surrogates and the DNC's account instead.
Polls indicate Biden needs to boost support among under-30 voters, and TikTok has exploded in popularity for political content. With 32% of young adults getting news from the app, the Biden camp is weighing whether to join leading Democrats in establishing a foothold. However, the deliberations come while Biden's administration aims to increase regulation on TikTok. The campaign would need to balance security risks with the potential political upside of engaging youth on the wildly popular platform.
Dove, animated influencer promote mental health ahead of Thanksgiving
Dove has teamed up with popular animated influencer Lennnie for a mental health-focused social media campaign leading up to Thanksgiving. Introduced last year, Lennnie is an animated blob known for spreading positivity and feel-good messages to over 4 million Instagram and TikTok followers. The collaboration kicks off November 20th with an Instagram post of Lennnie singing an upbeat song about self-love and confidence.
Dove is utilizing the influencer partnership to promote self-esteem ahead of the potentially stressful Thanksgiving holiday when social media comparisons can take a toll. The initiative builds on Dove's long-running Self-Esteem Project aiming to foster healthy beauty standards and appearance-related attitudes. With a major influencer like Lennnie delivering encouraging messaging, Dove hopes to inject some cheer and resilience for those feeling inadequate compared to idealized holiday portrayals. The uplifting campaign reminds consumers to celebrate their own glow rather than get down on themselves.
The rise of ‘offbeat influencers’ and what they bring to the table for brands
The trend of consuming imperfect, raw content on social media, particularly through short-form video apps, is significantly influencing the influencer marketing landscape. Mitesh Kothari from White Rivers Media highlights this content's uniqueness in capturing audience attention, differentiating it from traditional marketing tactics. Brands are utilizing this trend for enhanced engagement and recall, with influencers like Jasmeet Kaur and Bhupendra Jogi partnering with major brands like Sunfeast and 99 Acres. Shivam Agarwal of Kromium notes the cost-effectiveness of this approach, as brands can now bypass traditional, expensive marketing channels.
The authenticity and relatability of these influencers, especially among younger demographics in smaller cities, contribute to their appeal. For instance, the Instagram page ‘Emoboisofindia’ has gained a substantial following and brand collaborations due to its distinctive content style. Pratyush Raj and Vishu Tyagi, admins of Emoboisofindia, mention the wide relatability of such content across different demographics in India. However, experts caution about potential drawbacks. Brand-influencer alignments must be authentic, and there's a risk of content being short-lived. Vikram Kari of The Goat Agency and Arihant Jain of WLDD advise integrating these collaborations into broader marketing strategies for sustainable impact, acknowledging the challenge of maintaining long-term popularity in the fast-paced social media landscape.
Mega travel influencer ‘Nas Daily’ savours Sri Lanka in boost for tourism
The Sri Lanka Tourism Promotion Bureau has teamed up with mega travel influencer Nas Daily to promote the country to his 67 million global social media followers. Favorite tourist attractions like tea estates, trains, beaches, and cities featured in destination videos and posts on Nas Daily's platforms over four days of filming. The campaign aims to showcase Sri Lanka as a must-visit location while exciting wanderlust in potential travelers.
Minister of Tourism Harin Fernando said the goal is tapping Nas Daily’s mainstream reach to inspire visits, especially in upcoming seasons. Living in the digital age, the bureau recognizes influencers as powerful storytellers versus traditional advertising. Nas Daily’s authentic content focused on people, places and culture makes him exceptionally trusted. Having 30 localized accounts also broadens his global appeal. The influencer himself called Sri Lanka his “second home” and is eager to return. Overall the strategic tie-up looks to boost tourism by spotlighting Sri Lanka’s richness through a relatable digital lens for modern travelers.
Trucking Firms Using Social Media Influencers for Promotion
Trucking companies are increasingly leveraging social media influencers for promotion and driver recruitment. AI tools help identify best-fit influencers beyond guesswork. Benefits include showcasing desirable trucking lifestyles to attract young drivers who've grown up online. Fleets also partner with celebrities like NASCAR drivers for wider brand awareness. New software provides advanced filtering to pinpoint proven influencers by metrics like engagement, interests, location and more.
RoadSigns advises checking for padded followers. HypeAuditor's Candice King says virtual fictional influencers are also gaining traction. Once selected, messaging tools connect brands directly with influencers. Rather than risky speculation, AI systems match ideal influencers to target key audiences. For trucking's image and youth appeal, social media partnerships present low-risk, high-reward opportunities. With generation gaps in the workforce, virtual relationships can strengthen real-world recruitment and marketing.
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Interesting People
'We don’t hold anything back’: meet the Old Gays, TikTok’s most influential pensioners
A group of four openly gay male friends in their 70s, who go by "The Old Gays," have become unlikely social media celebrities with over 11 million TikTok followers. Based in Palm Springs' LGBTQ-friendly retirement community, their often scantily-clad dance and lip-sync videos celebrate queer visibility and posititivity. Since going viral in 2021, they've scored brand deals, TV appearances, and a new memoir-style book. The friends credit their authenticity and confidence, showcasing joy and sexuality despite struggles like past homophobia.
Their viral fame has brought financial stability and transformed their self-image. While their content seems frivolous, they take seriously representing older marginalized groups and hope to inspire optimism during reactionary political times. With unfiltered honesty about life's challenges, coupled with flamboyant fun, The Old Gays exemplify staying passionate, understanding yourself, and relishing every moment. Their boundary-pushing social media presence spreads a vital message: it's never too late to embrace and fully be yourself.
Angela Lavinia Valbonesi - From Influencer to Presidential First Lady
25-year-old Angela Lavinia Valbonesi, an Ecuadorian nutrition influencer with over 400,000 Instagram followers, is set to become the country's next First Lady. She is married to President-elect Daniel Noboa, 35, a billionaire heir to a fruit fortune who will be Ecuador's youngest president ever. Angela met Noboa in 2019 when she was his personal nutritionist, and they wed in 2021, now sharing a son with another on the way.
Her Instagram previously focused on fitness and abs shots, but has evolved into highlighting her philanthropy and refined fashion styled after Princess Diana and Kate Middleton. With Noboa's November 25th inauguration approaching, Angela is embracing her imminent role as First Lady passionately supporting her husband's campaign promises to aid vulnerable groups. Her background in health and wellness is expected to inform impactful new policies. Drawing parallels to modern royalty and wielding massive social media influence, the world may see Angela shine brighter than ever as an empowered, aspirational First Lady driving change in Ecuador.
Terence Crawford: "They just surprise man everyday"
Logan Paul and KSI's sports drink company PRIME has partnered with champion boxers Terence Crawford and Shakur Stevenson. The social media influencers and YouTube stars announced the partnership on Instagram. Having crossed over into boxing themselves, Logan Paul and KSI are leveraging their connections to link up with some of the combat sports world's biggest names for their beverage brand PRIME.
This comes after PRIME previously partnered with football clubs FC Bayern Munich and FC Barcelona as Paul, KSI and company continue expanding the business. Fans reacted positively to the latest crossover collaboration, praising Logan and KSI for defying expectations and advancing PRIME's takeover of the energy drink market. Between signing top-tier athletes across sports and their massive social media presence, the influencer duo seems to be building major momentum for PRIME through high-profile partnerships.
Beauty influencer Kay Yarms drops her very own Scarlet Hill make-up collection
Beauty influencer Kay Yarms, renowned on YouTube, has launched her own makeup line in collaboration with Mr Price, named the Kay Yarms x Scarlet Hill collection. This affordable range includes a variety of products such as a contour kit, a lip kit (featuring a lipliner, matte lipstick, and gloss), a blusher and eyeshadow palette, strip lashes, as well as beauty blenders and sponges. The collection, characterized by its neutral shades suitable for both day and night, has been eagerly anticipated by her fans.
Yarms announced the debut of her limited edition makeup line on Instagram, expressing her excitement and disbelief over the realization of this project. The collection reflects her personal favorite makeup products and tools. The launch has garnered positive reactions from her followers on social media, with fans expressing admiration for Yarms' hard work and eagerness to purchase the new products. The influencer's ability to create a buzz around her brand and engage with her audience exemplifies the power and influence of successful influencer marketing in the beauty industry.
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Industry News
Private Equity Likes and Subscribes to the Influencer Economy
As influencer marketing grows into a multi-billion dollar industry, private equity firms are finding new ways to participate. PE investors are acquiring stakes in influencer-owned businesses like Huda Beauty and Cameo. Firms are also investing in the broader influencer ecosystem, with Maverix Private Equity recently joining a $180 million funding round for influencer marketing company Viral Nation. Beyond direct investments, some PE firms are establishing influencer programs to support deal sourcing, portfolio companies, and marketing efforts.
The Newcastle Network taps influencers for consumer insights and fundraising support. With their grasp of modern consumers, influencers can provide value as investors themselves - demonstrated by Kim Kardashian, who co-founded consumer-focused PE firm SKKY Partners this year. As more private equity deals involve influencers as targets, partners and co-investors, firms need to vet appropriately to find brand-safe allies rather than risks. With careful due diligence, PE can capitalize on the marketing power and entrepreneurial potential of influencers.
FTC influencer marketing warning may disrupt brand and creator deals
The FTC recently warned influencers that common sponsored content disclosures like #ad may not be sufficiently conspicuous under its updated endorsement guidelines. This could disrupt brand-influencer partnerships often aiming to blur lines between ads and organic posts. The FTC now requires verbal and visual disclosures, whereas brands have pushed for subtler hashtags to maintain illusions. Some have even asked creators to omit disclosures altogether, despite legal issues.
As influencers resist turning accounts into continuous ads, they may take fewer deals, seek long-term brand partners, or contribute more creator-generated content directly to brands' channels. Brands face liability risks and may likewise shift strategies, perhaps utilizing more influencer content just on their own pages. Ultimately, the FTC's firmer stance on disclosures requires both sides to reconsider assumptions and practices around sponsored social media content. Influencer marketing can't ignore regulations to appear authentic, even if disclosures seem discordant next to unsponsored posts. Legal diligence around proper transparency will likely reshape partnerships.
TikTok’s latest feature lets users make AR filters - The Verge
TikTok has launched a new in-app feature allowing users to create their own AR effects and filters without needing third-party apps. The company announced that the mobile editing capability is now globally available. AR effects are central to TikTok culture, fueling viral challenges and trends. But until now, creators relied on external programs to make filters for the platform. The new TikTok tool includes filter templates and over 2,000 digital assets to build effects. Users can also add interactivity triggered by actions like screen taps, winks, and smiles.
Previously, TikTok filters were developed for free by creators. A $6 million fund was introduced in May to pay developers, but faced criticism over high barriers and low payouts before October reforms. As AR technology advances, TikTok filters are becoming increasingly sophisticated - like the viral Bold Glamour effect using generative AI for realistic face transformations. By handling filter creation natively, TikTok aims to further empower its community to drive the AR-focused ecosystem.
YouTube AI Tool Allows Creators to Sound Like Demi Lovato, Troye Sivan
YouTube is introducing an experimental AI feature, Dream Track, allowing creators to generate artificial voices of famous artists for YouTube Shorts. This initiative includes voices of Charlie Puth, John Legend, Sia, T-Pain, Demi Lovato, Troye Sivan, Charli XCX, Alec Benjamin, and Papoose. Initially, around 100 U.S.-based creators will have access to Dream Track, which can create music and voice snippets up to 30 seconds long from text prompts. The experiment aims to deepen connections between artists, creators, and fans, as stated by Lyor Cohen, YouTube's global head of music, and Toni Reid, vice president of emerging experiences and community.
Despite the music industry's cautious approach to AI this year, executives like Universal Music Group's Lucian Grainge and Warner Music Group's Robert Kyncl have expressed support for this collaborative venture. Details on AI technology training and potential monetization remain unclear. However, participating artists have shown enthusiasm, with Demi Lovato and John Legend welcoming the innovative experiment. Additionally, YouTube is releasing new AI music tools, building on its AI Music Incubator program. These tools, developed with input from renowned musicians, include capabilities like transforming hummed tunes into instrumentals and assisting in songwriting processes. Google DeepMind is also introducing SynthID to watermark AI-generated audio, ensuring its identification. This follows YouTube's recent move to allow music rights holders to request the removal of AI-generated content that mimics an artist's unique voice.
Kids prep for YouTube careers at content creator camp
A growing number of children are aspiring to become YouTube stars and influencers. In response, "creator camps" are popping up to teach kids video production and content creation skills. Tech columnist Taylor Lorenz recently visited one such camp in Texas where kids learn editing, scriptwriting, and other digital media abilities. She found most kids are self-motivated, with parents supportive of gaining career-ready skills. However, some kids also view it as a path to money, fame, and combatting loneliness.
Lorenz says YouTube can provide a creative outlet and friendships, but shouldn't replace real-world interactions. While concerning, she believes creator dreams come from a lack of in-person connections. With proper balance, Lorenz feels YouTube can be a healthy expressive platform. Still, influencer pressure could negatively impact self-identity during formative years. So while the camps meet rising demand, counselors must encourage moderation rather than pushing stardom.
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Great Paywalled Content
Creator-Economy Startups Bet on 'Communities' and Target Loneliness - Insider
Community has become the latest buzzword among creator economy startups like Patreon and Kajabi. In response to growing loneliness and the desire for connection, platforms are introducing features for creators to directly engage fans. Patreon now focuses on membership tools for building "energized communities." After acquiring community startup Vibely, Kajabi launched its own Communities product enabling exclusive group chats and interactions.
Similarly, Fourthwall introduced branded apps helping creators streamline members-only content and notifications. Investors believe community equals recurring revenue too, with members willing to pay for a sense of belonging. Kajabi said its communities generated $87 million for creators so far. Ultimately, platforms see creators as the new "priests" who can lead these fan followings both online and offline. While community offers market potential, sustainability remains uncertain. But the pivot spots a key opportunity - tapping creators to foster meaningful connections for internet users seeking to combat loneliness.
GoTo Soars After TikTok Mulls Investment to Save Online Shop - Bloomberg
In a significant development reshaping Southeast Asia's e-commerce landscape, TikTok, owned by ByteDance Ltd., is reportedly in advanced talks to invest in GoTo Group's online retail unit, Tokopedia. This move comes as a strategic response to Indonesia's new regulations, which have impacted TikTok's e-commerce operations.
The potential partnership, which could take the form of a joint venture or a new platform, aims to navigate regulatory challenges and rejuvenate TikTok's online shopping services in its largest market. For GoTo, this partnership could boost its digital commerce capabilities, despite aiding a competitor. For TikTok, it's a chance to realign with local regulations and re-enter the Indonesian market. This development highlights the evolving digital landscape in Southeast Asia and signifies a pivotal moment in the convergence of social media and e-commerce, potentially setting new trends in the creator economy.
How AI Is Impacting Influencer Marketing: Billion Dollar Boy CMO - Insider
Billion Dollar Boy, an influencer marketing agency, launched an innovation unit called Muse focused on emerging technologies including AI. The division is led by Chief Marketing and Innovation Officer Becky Owen, who aims to help brands thoughtfully incorporate new tech like generative AI into influencer campaigns. Owen believes AI has more immediate business impact than overhyped innovations like NFTs.
Muse has already run pilot projects with three unnamed retail brands, including luxury fashion companies, leveraging AI tools to create influencer content. Early results are promising — AI-generated content saw twice the engagement on average compared to regular influencer posts. In one campaign, AI video play rates crushed non-AI videos by over 1,400%. While still experimental, the success indicates AI's potential to captivate audiences. Owen advises brands approach AI as a collaborative exploration with influencers, pushing boundaries of the tech. With thoughtful use cases, AI could become a core element of influencer programs rather than a gimmick. Muse provides the sandbox for brands to trial applications balancing innovation with strategic objectives.
Brands will continue to embrace TikTok this holiday season - Insider Intelligence
New survey data reveals that TikTok's value for holiday marketing and revenues is rising sharply among brands and retailers. In 2023, 32% see TikTok as extremely valuable for sales, up from 8% in 2022, while 60% anticipate its growing role in seasonal campaigns versus 55% last year. TikTok's importance for brand-building has also climbed consistently, now recognized by 96%. Accordingly, marketing investment on the platform is increasing, with 78% of brands allocating TikTok budgets in Q3 2023 compared to 54% in Q1.
TikTok advertising has likewise grown, purchased by 35% of brands recently versus 24% last year. There is also a pronounced shift toward original TikTok content creation, with 39% now investing heavily versus 23% in 2022. As TikTok rolls out more sophisticated attribution tools, the data signals its evolving position as a critical driver of consumer trends and revenues during pivotal retail events. Brands seem to view the platform as too deeply embedded with young consumers to ignore or avoid despite ongoing data privacy and security concerns.
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