Influence Weekly #314 - Top 5 creator partnerships: 2023 year in review

Influence Weekly #314
December 8th, 2023
Executive Summary
  • TikTok’s biggest hits are videos you’ve probably never seen
  • Top 5 creator partnerships: 2023 year in review
  • TikTok brings its Ticketmaster partnership to more major markets
  • IZEA Announces Acquisition of Australian Influencer Marketing Leader Hoozu
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Great Reads

CrunchLabs founder Mark Rober on the creator economy, success of his company and next steps [Video] 
Mark Rober, a former NASA and Apple engineer turned YouTube star, leveraged his 28 million+ subscribers to launch CrunchLabs, a STEM education company. Its subscription boxes contain hands-on engineering projects for kids. Far surpassing a goal of 100,000 subscriptions in two years, CrunchLabs hit that mark in under 6 months.

Now at over 2 million boxes sold, it was immediately profitable thanks to Rober's massive social reach. He calls it emblematic of the creator economy, where he can tap his audience to promote new initiatives. Originally nerdy and mechanical engineering-minded, Rober wants to organically instill passion for science and engineering rather than convince kids outright. As CrunchLabs grows, he may take on partners and outside money to expand into entertainment and toys. But the self-described nerd is happy building things, arguing manual skills will retain value alongside AI. Overall he aims to stealthily nurture technical interest on a mass scale.


TikTok’s biggest hits are videos you’ve probably never seen
TikTok's annual report on the most viral videos and trends of 2023 once again highlights the platform's content diversity and how user experiences vary drastically. The report lists the top videos in the U.S., including a makeup routine by @dollievision with 504 million views, an Iron Man DIY by @justinflom, and a large kitten video by @through.the.lleaves, each amassing hundreds of millions of views. Notably, Selena Gomez's skincare routine also made the list.  

This disparity in content popularity underscores the personalized nature of TikTok's algorithm. What one user sees as viral may be completely unknown to another, questioning the traditional concept of virality. The platform's varied content, from pet videos to ASMR, reflects its wide-ranging appeal and the difficulty in defining a consensus on popular trends.  The report also delves into political and cultural content, such as the attention garnered by hashtags related to the Israel-Palestine conflict. This demonstrates the complexity of assessing viral content on TikTok, where niche interests can coexist with mainstream trends, challenging the notion of a unified viral culture.
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Check out insights from industry experts, influencers, executives, and visionaries to unravel trends shaping the UGC marketing landscape in 2024. 

 
Campaign Insights

Ex-MasterClass exec’s SonderCo aims to reinvent brand-influencer deals | Ad Age
Former MasterClass executive Sean Akaks has launched SonderCo, a new agency aimed at revolutionizing brand-influencer collaborations. The agency, co-led by Partner and Chief Business Officer Jessie Mash, specializes in creating tailored deals between brands and talent, including equity stakes, revenue shares, leadership roles, and other forms of compensation. This approach is particularly appealing to startups, which often lack the budget for traditional celebrity endorsements.  SonderCo’s strategy is to align the interests of brands and talent more closely, whether that’s through investment opportunities or revenue-sharing models.

This innovative method of partnership deviates from conventional advertising models, focusing instead on establishing genuine, long-term relationships between brands and influencers.  The agency’s unique approach has already seen success in various projects, including securing Christina Aguilera as co-founder and chief brand advisor for sexual wellness brand Playground. SonderCo also facilitated influencer partnerships for Akili Interactive’s ADHD treatment product, EndeavorOTC.  With Akaks’s expertise in talent negotiation and Mash’s experience in partnerships and production, SonderCo is poised to make a significant impact in the influencer marketing landscape, particularly for brands seeking authentic connections with their audiences.


Top 5 creator partnerships: 2023 year in review
In a dynamic shift in media consumption, podcasts have emerged as a central medium in shaping cultural moments, as highlighted in a recent Spotify Advertising report. The report underscores podcasts' increasing influence, particularly among Gen Z, who view them as a primary connection to modern-day culture. This trend was evident with the release of the 'Barbie' movie, which led to a significant surge in Barbie-related podcast streams on Spotify.  Advertisers and publishers are recognizing the unique engagement opportunity podcasts offer. Unlike other media forms, podcasts foster a deeper connection with audiences, making them more influential in driving purchasing decisions. Spotify data reveals that 58% of podcast engagement extends to the ad experience, with a notable percentage of listeners taking action, such as making purchases or signing up for email lists, after hearing podcast ads.

Key cultural events like Eurovision, music album releases, and significant sports news have seen heightened podcast engagement, often surpassing Google search trends. This phenomenon demonstrates podcasts' role not just in reflecting but also amplifying cultural trends. The medium's intimate nature allows for profound discussions on trending stories, creating a direct link to the content that resonates most with listeners.  For influencer marketing professionals, this insight emphasizes the need to integrate podcasts into their strategies. As the landscape evolves, podcasts are becoming an essential part of the media mix, offering a highly engaged platform for brands to connect with audiences in meaningful ways.


AI pretenders infiltrating Influencer marketing in Australia
AI influencers are infiltrating Australia's marketing sector, posing as real people to quickly and cheaply reach consumers open to virtual creators. But experts are split on their potential impact versus human influencers. Some believe AI lacks authentic relatability, though hyper-realistic celebrity avatars already entertain social feeds. AI competitors also force more influencer choice for brands. Firms can potentially craft their own AI ambassadors, owning that space rather than renting humans.

But disclosure remains critical so audiences can distinguish between real and fake. While AI can output higher volumes fast, it currently focuses on static imagery. Animation ability would rapidly accelerate replacement risk. Overall, unchecked AI growth threatens to undermine recently legitimized influencer marketing with deception. Leaders urge promptly addressing AI, before the entire online world blurs between fiction and reality. But some find AI influencer assistants intriguing, calling them an augmented experience versus a doomsday scenario. The consensus: AI demands caution, but may complement humans.


TikTok Shop helps PacSun, other brands increase holiday sales
Fashion and beauty brands like Tarte Cosmetics, PacSun, and Gen Z-focused Cider are seeing sales surge from TikTok Shop. The platform's holiday discounts, affiliate program allowing creators to earn commissions, and algorithmic boost for shoppable videos are driving rapid growth. Tarte traced a 40% October increase in overall sales to TikTok Shop and has made 300,000 sales there so far. A viral Cider dress video led to over 34,000 purchases of that one item out of 100,000 total.

PacSun's gross merchandise value rose 580% between October and November thanks largely to TikTok Shop. While some users complain about excessive affiliate content, the platform's push toward shoppability makes it crucial for brands seeking awareness and sales. DTC and impulse-purchase brands especially should develop TikTok Shop strategies, experts say. Success stories show its potential as a holiday sales driver, making TikTok impossible for brands to ignore as commerce and content further converge.
Interesting People

Gstaad Guy: Inside the Niche Social Media World of the 1%
Gstaad Guy, a satirical influencer known for his parodies of the ultra-rich, has carved out a niche in the influencer marketing industry, drawing attention from major luxury brands and the wealthiest social circles. Operating under anonymity, Gstaad Guy’s content centers around fictional characters like Constance, an old-money aristocrat, and Colton, a Gen-Z nouveau riche American, who embody the lifestyles of the ultra-wealthy. His humor, laden with cultural references, resonates particularly with the top 1%, including many on Forbes' Billionaires List.  

The influencer's impact is palpable: a collaboration with luxury brand Loro Piana for limited edition shoes sold out rapidly, demonstrating his unique influence in the luxury market. Gstaad Guy’s approach reflects a shift in luxury marketing, moving from traditional advertising to creating digital conversations akin to those at an exclusive dinner party. He emphasizes authenticity and connection, using humor and insider knowledge to appeal to his high-net-worth audience.  This innovative approach to influencer marketing spotlights a trend in the industry: the effectiveness of niche, character-driven content that resonates with specific audiences. Gstaad Guy’s success is a testament to the potential for influencers to shape brand perception and consumer behavior in the luxury sector.


Influencers turn entrepreneurs banking on digital fame
As social media influencers build massive fan followings, many are now leveraging their fame and turning entrepreneurs. With support from private equity and talent agencies, influencers like YouTuber Bhuvan Bam are launching production houses, while others are starting merchandise lines or hair care brands. Industry experts say the ventures are natural extensions of the influencers' personal brands and allow them to monetize their existing audiences.

Funding often starts with the influencers' own wealth or partnerships with brands. Influencers seek ongoing revenue streams to sustain careers beyond social media platforms. Their businesses also give them more control compared to relying solely on brand sponsorships. As the creator economy expands, social media stars aim to transition from individual content producers to fuller-fledged media enterprises. Ultimately, having their own companies allows influencers to diversify while still connecting with loyal followers.


It’s Detroit influencer Randi Rossario’s world — and we’re just living in it
Detroit social media influencer Randi Rossario has become a prominent figure with her unique blend of humor and relatability. Her journey, characterized by her talkative nature and entrepreneurial spirit, led to the creation of "The Randi Rossario Show" on Tubi and a role in the nationally recognized podcast "Tonight’s Conservation." Known for her humor and wit, Rossario's content reflects her Detroit roots, often compared to personalities like Wendy Williams and Iyanla Vanzant.  

Rossario's early career included launching Oh So! Radio, a platform for emerging journalists and creatives. Her resilience shone following a challenging recovery from a car accident in 2018, which inspired her shift to motivational and self-help content on social media. This authentic approach resonated with her audience, growing her following significantly on Instagram and TikTok. Her story exemplifies the power of authenticity in building a successful influencer career, offering valuable insights for influencer marketing professionals about leveraging personal experiences to engage and grow an audience.


NFL Content Creator Who Celebrated Tyreek Hill’s Backflip Selfie Says He Was Suspended for Season
Kevin Fitzgibbons, an NFL content creator, has been suspended for the remainder of the season, with a potential for permanent dismissal, after participating in Miami Dolphins' player Tyreek Hill's touchdown celebration. The incident occurred in October during a game against the Panthers, where Hill recorded himself performing a backflip after taking Fitzgibbons' phone. Fitzgibbons, who is also a University of Miami student and claims to be a personal friend of Hill, engaged in the celebration by mimicking a camera and jumping in excitement.

Although the CBS broadcast's perspective of the celebration was shared on the NFL's official account, Hill's viewpoint was not.  Fitzgibbons was penalized for violating NFL's rules prohibiting credentialed individuals from showing fandom or celebration. Despite understanding the NFL's decision, Fitzgibbons expressed regret over the incident, reminiscing it as one of the best moments of his life. The video, later shared by Hill on social media, highlighted the strict enforcement of conduct rules within the NFL, even amidst memorable and spontaneous moments.


Tennis Star Nick Kyrgios is OnlyFans' newest content creator
Australian tennis star Nick Kyrgios is joining subscription platform OnlyFans to interact with fans. The 28-year-old announced he will launch a free OnlyFans page, making him one of the most high-profile male athletes on the site known for adult content. Kyrgios, currently sidelined from tennis with injuries, aims to produce and own unique content while connecting to audiences in new ways. He said athletes must have an online presence beyond just sports venues.

OnlyFans offers creators control over monetized posts. While explicit material is allowed, Kyrgios won't go that route. Often controversial, the talented player seems suited to speak directly to the public. Kyrgios had a career highlight as 2022 Wimbledon runner-up. Though presently unranked, at his best he has beaten tennis legends Djokovic, Nadal and Federer. Kyrgios will likely use OnlyFans to give unfiltered opinions, discuss mental health, and reveal his personality. It allows him more freedom than tightly managed pro tennis. The move continues Kyrgios’ maverick approach to sports stardom.



 
Industry News

SocialVoice Uses AI Technology To Vet Influencers
SocialVoice uses AI technology to thoroughly vet influencers for brands and agencies. Going beyond typical data points like followers and hashtags, SocialVoice analyzes an influencer's entire video back catalog across platforms. Their program extracts topics, sentiment, and even the creator's voice to assess expertise and brand safety issues. This eliminates subjectivity in influencer profiles. As the creator economy grows, SocialVoice helps standardize the process of identifying authentic, knowledgeable partners. Their long-term data helps spotlight true experts versus creators chasing trends.

As more brands work with micro-influencers, SocialVoice's tech assists with efficient vetting and management at scale. Key factors assessed include sensitive content, profanity, and overall brand alignment based on industry standards. SocialVoice aims to empower both brands and creators with data-driven insights. As attention spans shrink, their focus on short-form video positions them for future growth. With innovators like SocialVoice driving integrity and compliance, the creator economy can continue expanding while optimizing marketing ROI through credible influencer partnerships.


TikTok brings its Ticketmaster partnership to more major markets
TikTok has expanded its ticketing partnership with Ticketmaster, enabling users across 20 additional countries to purchase event tickets without leaving the app. First launched in the US last August, the feature now works in major markets like the UK, Germany, France, and Australia. Verified artists can embed links to ticket sales directly in their videos to promote upcoming shows. TikTok says US beta testing saw strong adoption, with ticketed videos receiving over 2.5 billion views.

The expansion reflects TikTok's growing music industry presence as it rolls out artist accounts, promotional tools, and its TikTok Music streaming service. Letting fans buy tickets while engaging with videos drives convenience and sales. Rival platforms like YouTube and Snapchat have similar Ticketmaster integrations, but TikTok's massive reach offers unmatched exposure. As the app becomes a go-to for artist discovery, embedded ticketing completes the loop, turning viral moments into live event opportunities worldwide.


US Congress will not take up TikTok legislation this year -senator
US legislation targeting Chinese-owned video app TikTok will not pass Congress this year, according to Senator Maria Cantwell. Cantwell says the Senate Commerce Committee is still working on a bill and discussing concerns raised at a classified briefing last month. However, with the 2022 legislative calendar wrapping up, action will likely be postponed to 2023. TikTok faces ongoing scrutiny over fears user data could be accessed by China's government.

Bipartisan support exists for restricting TikTok, but efforts have stalled to date. The House passed a TikTok ban bill along party lines, but the full chamber did not take it up. Separately, a judge blocked a TikTok ban in Montana set to take effect January 1st. The Biden administration has not acted further on a Treasury Committee recommendation to force TikTok's Chinese owner ByteDance to divest. Analysts think election-year politics make a ban less likely in 2024. For now TikTok, with over 150 million American users, has avoided new federal policy constraints, despite national security worries in Washington.


Amazon-owned Twitch will exit South Korea in February 2024
Twitch has announced its withdrawal from the South Korean market due to prohibitively high operating costs. Set for February 27, 2024, this move significantly impacts the vibrant Korean gaming and streaming community on Twitch, which includes streamers like Yummy_2 with 30,000 followers. The platform’s decision is attributed to the country's high network fees, which are 10 times more expensive than in most other countries.  In response to the shutdown, Twitch streamers in Korea are faced with the challenge of migrating their communities to alternative platforms like YouTube and Afreeca.

Traditionally, Twitch’s rules have restricted streamers from directing their audience to other platforms. However, CEO Dan Clancy stated that Twitch will now assist Korean streamers in this transition.  The decision stems from South Korea's Sending Party Network Pays law, an internet traffic tax that obliges content providers to pay fees to telecommunications companies. This law has been contested by major companies like Netflix and Google but remains a significant financial burden for internet-based businesses in South Korea.  The shutdown will also affect streamers outside Korea who rely on Korean viewership, and Twitch has warned of potential revenue changes for these individuals.


IZEA Announces Acquisition of Australian Influencer Marketing Leader Hoozu
IZEA Worldwide announced the acquisition of Hoozu, Australia's top influencer marketing company. This strategic move marks a significant expansion of IZEA’s influence within the Asia-Pacific region, building on its global growth momentum in countries like the U.K., China, and South Korea. Hoozu, known for its innovative brand partnerships and a talent management division named Huume, will operate as a wholly-owned subsidiary of IZEA.  

This acquisition aligns with IZEA's vision for geographical and capability expansion in the creator economy. Hoozu, co-founded by entrepreneur Nathan Ruff and professional footballer Lote Tuqiri, has demonstrated brand credibility and market expertise in Australia. Natalie Giddings, the CEO of Hoozu, will continue to lead the company under IZEA’s umbrella.  Ryan Schram, President and COO of IZEA, emphasized the acquisition's role in enhancing geographic reach and adding new capabilities. The transaction, a mix of cash and stock with deferred payments based on KPI performance, positions IZEA for further growth and consolidation in the influencer marketing sector.


TikTok is driving spending for women in their 20s
Gen Z women are increasingly shaping spending trends on TikTok, with 75% using the app compared to 62% of their male peers, as reported by Morning Consult. The platform has become central in setting what's 'hot' online, particularly for young women. This trend is leading to financial risks, as influencer-led "haul" videos often promote aspirational, yet unaffordable lifestyles.  This social media influence is likened to the modern "keeping up with the Joneses," contributing to a significant rise in nonmortgage debt among Gen Zers.

Between March 2021 and the first quarter of 2023, their debt increased by 99.3%, with notable spikes in personal loans and credit card balances.  Financial experts advise young women to be cautious of the misleading portrayal of wealth on social media and prioritize long-term financial planning. They emphasize avoiding credit card debt and focusing on savings and investments, crucial for establishing a secure financial future beyond the allure of social media-driven consumerism.

 
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In the Creator Economy, It’s the Wild Wild West for all Involved - The New York Times
A panel of influencers, brand executives, and industry experts convened at the recent DealBook Summit to discuss power dynamics in the exploding creator economy. They agreed it's a "wild wild West" with creators, brands, platforms, and audiences all jockeying for control. Authenticity is essential for success but monetizing that identity creates tension. Creators must diversify into "mini-studios" while retaining audience data/contacts. Brands should trust creators to understand followers and set realistic metrics on reach versus sales. Consumers now have unprecedented ability to hold brands and influencers accountable.

Overall the sector lacks regulation and stability. Creators have short careers so they must maximize income potential quickly. Platforms come and go in popularity. For long-term viability, influencers must become diversified businesses not reliant on one platform. The panelists debate where ultimate power lies but agree creators must produce content that resonates with loyal followers to thrive in this chaotic, high-stakes new economy.


Influencer Sydney Morgan: More brands should embrace livestream shopping - Glossy
Sydney Morgan, a social media influencer with millions of followers across platforms like YouTube, TikTok, and Instagram, shares her insights on content creation and the evolving influencer industry. She views algorithm changes as a game, constantly adapting her content to maximize engagement. Morgan's content varies from makeup tutorials to beauty product reviews, and she has collaborated with brands like NYX Cosmetics and American Eagle.  Notably, Morgan discusses the different content strategies for various platforms. She finds YouTube ideal for building a community and fostering deeper connections, while TikTok is great for gaining new followers. Instagram, with its preference for short, non-speaking videos, presents a challenge for her style of content.  

Morgan emphasizes the importance of engaging with her audience, using features like YouTube Community polls and Instagram’s Broadcast Channel to interact directly with her followers. She also suggests that brands should explore livestream shopping, citing successful partnerships where she demonstrated products in real-time with direct shopping links, enhancing authenticity and viewer engagement.  Finally, Morgan touches on the potential of TikTok Shop but prefers to focus on her existing platforms, noting a shift in her consumption habits due to an overload of branded content on TikTok.


In the Creator Economy There is Money to Be Made - The New York Times
The creator economy, valued at nearly $500 billion by 2027, goes far beyond Instagram influencers. Anyone creating online content and monetizing it falls under this umbrella - from fitness coaches to doctors to individual sports broadcasters. Massive followings aren't always necessary; micro-influencers with engaged niche audiences can be highly effective brand partners. College athletes are now benefiting from name, image and likeness (NIL) deals.

Key to success is authenticity between creators and brands. Agencies rigorously vet pairings while legal guidelines require transparency on sponsored posts. Looking ahead, top influencers will professionalize further as media enterprises themselves, while smaller creators may struggle against AI and more crowded field. Ultimately, the personal connections creators have built with loyal followers must remain genuine. This ever-expanding economy rewards those who leverage digital platforms and analytics while staying true to their initial identity.


Inside Kick, an Upstart Streaming Competitor to Twitch - The New York Times
Kick, an Australian livestreaming startup, has rapidly grown to over 21 million accounts by luring top creators from dominant platform Twitch. Kick keeps just 5% of streamers' earnings and has offered multimillion dollar contracts, compared to Twitch's 50-50 revenue split. However, Kick has faced criticism for its embrace of controversial content like online gambling, risky pranks, and hosts known for misogyny. Sites like gambling platform

Stake share Kick's ownership and frequently sponsor streams. As Kick gained attention, it imposed some content restrictions but remains relatively lax on moderation compared to rivals. Critics say Kick allows harmful behavior to thrive, while supporters see it as a welcome alternative. The site walks a fine line between irreverent niche platform and responsible business as it balances rapid growth with calls for regulation. Its future likely depends on appealing to advertisers while retaining its reputation for edgy freedom.

 
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