Influence Weekly #315 - YouTube Is Now Hiding Which Channels Get a Cut of Ad Revenue

Influence Weekly #315
December 15th, 2023
Executive Summary
  • Alix Earle wants to start a brand and share the process on her podcast
  • TikTok invests $1.5B in Indonesia e-commerce market
  • How OnlyFans millionaires live and spend in L.A.
  • YouTube Is Now Hiding Which Channels Get a Cut of Ad Revenue
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Great Reads

YouTube Is Now Hiding Which Channels Get a Cut of Ad Revenue
YouTube has recently removed a code snippet from its website that revealed which channels are part of the YouTube Partner Program (YPP), responsible for sharing ad revenue and subscription payouts. This change has significant implications for creators, journalists, and researchers who used this transparency feature to monitor the platform's financial engagements with content creators.  The YPP is an exclusive program that shares ad revenue with selected creators, validating their talents and content. The now-removed code helped users identify channels in this program, offering insights into who benefitted most from YouTube's monetization strategies. Its removal has sparked concerns among various stakeholders, including advocacy groups like Ekō, who used it to track problematic content, and creators like Tony Woodall, who relied on it to understand competitive strategies in content monetization.  

YouTube spokesperson Kimberly Taylor states that the removal was part of ongoing updates to enhance privacy for creators and viewers. However, this decision has been met with criticism for reducing transparency and making it harder to hold YouTube accountable for its revenue-sharing practices.  The change poses challenges for monitoring the platform’s financial support of content, especially problematic or controversial channels. Developers and researchers who previously relied on this code for their studies or tools now face limitations in assessing YouTube’s monetization decisions.  This move by YouTube reflects broader concerns about transparency and accountability in digital platforms' monetization policies, impacting how creators and the public view the platform's financial relationships with its users.


TV reporters become TikTok influencers » Nieman Journalism Lab
As TV reporters build large personal followings on TikTok, there is a growing push for them to capitalize financially like influencers. Local journalists use TikTok mainly for "day in the life" content versus hard news, amassing hundreds of thousands or even millions of followers. Yet due to ethics concerns around bias, they cannot accept the lucrative brand sponsorship deals offered.

This causes frustration over lost income compared to both the low salaries of local news and the high earning potential of mid-tier influencers. Some suggest compromises like allowing non-political sponsorships or industry reckoning with pay issues. Ultimately, as TikTok prioritizes specific content over individual creators, reporters must embrace influencer strategies to succeed. Stations should adjust by allowing personnel to benefit from personal brands separate from the network, similar to college athletes and NIL rules. As journalism faces a burnout crisis, rewarding TikTok's influencer-like demands with commensurate compensation will likely occur more in 2024.
Campaign Insights

Here's How Senior Citizens are Shattering Stereotypes as Silver Influencers on TikTok
The social media landscape, traditionally dominated by younger generations, is experiencing a remarkable shift with the emergence of 'silver influencers.' These senior citizens are gaining significant traction on platforms like TikTok and Instagram, challenging age-related stereotypes and redefining beauty standards. Notable influencers like Jane McKennan and Joan and Jimmy O’Shaughnessy are not only amassing impressive followings but also translating their online popularity into financial success through brand partnerships and sponsored content.  This trend represents a lucrative opportunity for marketers, especially given the spending power of the over-50s demographic.

In the UK, brands are tapping into this segment, realizing its broad appeal that spans across age groups. Influencers like Lyn Slater and Gillean McLeod are also gaining recognition in the fashion industry, further highlighting the influence of this demographic.  For influencer marketing professionals, the rise of silver influencers underscores the importance of diversifying marketing strategies to include older demographics. These influencers demonstrate the potential to connect authentically with both young and senior audiences, offering unique perspectives and content. Their success challenges the traditional notion of influence in the digital age and opens new avenues for engaging with an often overlooked yet affluent audience segment.


‘Creator content is now a vital part of the mix,’ IAB says. Here’s what that means for brands
A  recent IAB report highlights a shift in advertisers' approach, with 44% planning to up their investment in creator content by 25% in 2024. This pivot reflects the growing recognition of creator content as a high-quality advertising channel, with 90% of advertisers affirming its value.  The creator economy, currently valued at $250 billion, is projected to almost double by 2027. This surge is attributed to the alignment of creator content with consumer preferences, as evidenced by 39% of consumers engaging more with creator content than the previous year, compared to 22% for studio content.

This trend underscores a deeper engagement with creator content, driven by a desire for connection and learning.  Furthermore, advertisers are now measuring the impact of creator content with the same KPIs used for studio content, facilitating direct comparisons. The IAB report reveals 86% of advertisers are confident in assessing the effectiveness of creator campaigns.  For influencer marketing professionals, the takeaways are clear. Recognize the full-funnel potential of creator content, moving beyond mere brand awareness to drive purchase decisions. Trust creators as content producers who understand their audience, and focus on niche topics to cater to specific interests. This strategic shift signals a more integrated and effective approach in influencer marketing.


Denim brand Lee appoints Sara Ali Khan as brand ambassador; launches campaign “Lee: Home of the Real Denim”
Iconic denim brand Lee has brought on Bollywood actor Sara Ali Khan as its new brand ambassador in India. Lee launched a campaign titled "Lee: Home of the Real Denim" positioning itself as the top choice for young audiences seeking authentic denim. The ads showcase Khan embodying a stylish "fashion police" persona wearing Lee's comfortable designs, questioning people's clothing choices in a humorous way.

As brand ambassador, Sara Ali Khan represents Lee's heritage of over 130 years of denim innovation combined with a contemporary spirit. The campaign aims to drive more customers, especially younger demographics, to Lee both online and at retail stores. With her magnetic, authentic presence, Khan brings the right attitude to fuel excitement for Lee among India's vibrant, fashion-forward youth. The appointment and launch campaign are part of the brand's India growth strategy focused on leveraging influencers to spotlight Lee's denim authority.


Dior, Chanel And Nike Top China's Influencer Engagement In 2023
According to exclusive data from Launchmetrics, the top brands by influencer engagement in China this year were luxury houses Dior ($397 million in Media Impact Value) and Chanel ($313 million), followed by sportswear giant Nike ($134 million). Dior's success is attributed to early adoption of trends like short video platform Douyin, which now drives over half its influencer impact. Meanwhile, Tom Ford averaged an impressive $6,200 in Media Impact Value per influencer placement, displaying efficient use of limited posts.

Mass market brands Uniqlo and Zara dominated on the Xiaohongshu platform, likely due to its female-skewing audience receptive to lifestyle content and retail recommendations. Uniqlo generated 81% of its influencer value there. As Chinese consumers trend towards more budget-conscious spending, accessible brands resonate. The data highlights how pioneers like Dior and efficient engagers like Tom Ford find China success. It also shows fast fashion's strong influencer foothold, as entities like Uniqlo and Zara thrive on platforms aligned with consumer mindsets.
Interesting People

Katya Tolstova Went From Modeling To A Major Influencer Career
Katya Tolstova, a former model turned prominent fashion influencer, details her journey in the digital content creation realm. With over half a million Instagram followers, Tolstova has been a staple at fashion shows and events worldwide, leveraging her experiences to cultivate a significant online presence. She began her Instagram journey in 2012, sharing behind-the-scenes modeling life, but fully transitioned to content creation in 2019, focusing on fashion influencing.  During the lockdown, Tolstova experienced a substantial growth in her following, adapting to the constraints by creating self-styled, self-shot editorials from her Brooklyn apartment. Post-lockdown, she gained recognition attending global fashion weeks, not as a model but as a sought-after guest, sharing insider perspectives with her audience.  

Tolstova's content provides an authentic view of high fashion, including exclusive details from various fashion weeks like NYFW, MFW, and PFW. She emphasizes personal style and direct interactions with designers, offering fresh insights into the fashion world.  Her experiences highlight the interplay between runway trends and street style, underscoring the cyclical influence they have on each other. Tolstova values the role of street style in fashion, considering it an integral part of her fashion week experiences, from preparation to post-show analysis. She also acknowledges the crucial role of street style photographers in shaping fashion narratives.  Addressing sustainable fashion practices, Tolstova emphasizes reusing high-end pieces and supporting sustainable brands, reflecting a responsible approach to fashion consumption.


Bait cars and glitter bombs: Former NASA engineer and YouTuber Mark Rober turns tables on San Francisco car burglars - ABC7 Los Angeles
Popular YouTube star Mark Rober has released a new prank video targeting car burglars in San Francisco. Rober, a former NASA engineer, rigged backpacks filled with glitter, a foul odor spray, and hidden cameras. The backpacks were placed in bait cars to capture the reactions of thieves breaking in. Over 8 months, Rober recorded 25 break-ins, finding most were individuals rather than organized groups. Rober enlisted I-Team reporter Dan Noyes who helped track stolen license plates used in crimes to a fencing operation he had previously reported on.

One plate was stolen from retired professor Gerald Eisman’s car in Oakland which was later filmed being used in a break-in. The video also features a laptop with a tracking device that was stolen and led back to the same known fencing spot Noyes had exposed. While meant to entertain, Rober notes the video provides insight into who is breaking into cars and where the stolen goods are going. With clever tech pranks, YouTuber Mark Rober creatively sheds light on and brings awareness to San Francisco’s ongoing vehicle break-in problem.


From founder to creator: The rise of a new breed of influencers in the creator economy
In the evolving landscape of influencer marketing, a new category of influencers has emerged: founders turning into content creators. As the creator economy expands, these founder-influencers, like Anand Mahindra and Ratan Tata, are harnessing social media platforms to build personal brands distinct from their enterprises. This trend reflects a shift towards more personable and authentic content, focusing on entrepreneurship, leadership, and behind-the-scenes insights into business operations.  Gautam Madhavan, Founder and CEO of Mad Influence, notes the growing influence of these individuals, who combine their business acumen with content creation skills. Platforms like LinkedIn are becoming arenas for these founders to establish a more relatable presence, as observed by Kalyan Kumar, Co-Founder and CEO of KlugKlug. For example, Nithin Kamath of Zerodha has engaged audiences through YouTube and podcasts, discussing various topics from the metaverse to electric vehicles.  

Experts in the field, such as Sagar Pushp, CEO of ClanConnect, identify these founder-creators as key opinion leaders (KOLs), differentiating them from regular content creators due to their thought leadership and higher engagement rates. However, their impact is still seen as somewhat limited, constrained by geographic and audience-specific factors.  This trend also presents a competitive challenge in the influencer marketing space. Brands are increasingly recognizing the value of these KOLs for their authenticity and influential opinions, particularly in sectors like auto and finance. As this category grows, it fosters a dynamic and competitive environment, urging these influencers to continually innovate and differentiate their content.


How OnlyFans millionaires live and spend in L.A.
The article profiles three OnlyFans content creators living in Los Angeles - Casey Boonstra, Desiree Schlotz, and Carly Sutherland Lawrence. It explores how they earn substantial incomes on OnlyFans and how they spend their money living in LA.  Before OnlyFans, they struggled financially with jobs like bartending and minimum wage retail work. Now Boonstra rents a luxury Hollywood apartment with views of the Hollywood sign, Schlotz drives a BMW and gets $3,000 Botox treatments, and Lawrence splurges on shopping and Vegas gambling.  

They frequent high-end restaurants like Catch and workout at places like Equinox. Schlotz started her own swimwear line using OnlyFans earnings while Lawrence is launching a perfume brand. Beyond material goods, the article notes that OnlyFans incomes fund passions like acting lessons for Boonstra and therapy for Lawrence.  While highlighting the creators' lavish spending, it notes most still live below their means, save money, and invest back into their personal brands and businesses. The article puts a lifestyle lens on the emerging creator economy enabled by platforms like OnlyFans.



 
Industry News

Twitch launches annual recap with new game, marketing push
Twitch has launched its 4th annual Twitch Recap feature, including a new side-scroller game for users to celebrate top streaming moments. In the "Twitch Recap Game", players control the platform's mascot to collect goat icons, riffing on G.O.A.T, along a journey showcasing 2022's most memorable clips.

The game and surrounding recap aim to highlight Twitch's diverse communities. It's supported by a marketing campaign with influencer partnerships to stream the game, social media activations for clip shares, in-stream chat emotes to boost player points, and more. Streamers can also host "Recap Streams" for their communities, potentially getting showcased by Twitch. With custom creative across social media and ads, Twitch hopes to generate excitement like other platforms' end-of-year recaps that summarize users' personal activity. The elaborate Twitch Recap and game integration focuses on memorializing top content rather than individual data, allowing the platform to celebrate its tight-knit creator ecosystem.


Salv Raises $4.3 Million to Expand Financial Crime Compliance Solutions
Influencer platform LTK has launched a new AI solution called LTK Match.AI designed to optimize pairings between brands and digital creators for marketing campaigns. Analyzing LTK's robust dataset across publishing platforms, the technology matches brands and influencers based on historical performance to drive maximum impact. For brands, it discovers new relevant creators to expand reach. For creators, it suggests lucrative brand partnerships to elevate income. The proprietary AI leverages real-time product data on what creators are already promoting to determine who effectively markets certain categories and make data-backed recommendations.

LTK touts it as advancing influencer marketing through intelligent, performance-focused connections versus manual outreach. Part of LTK's expansive creator-brand ecosystem, the AI-powered matchmaking aims to craft success for both sides. With over 7,000 brands and creators in 150+ countries on its platform, LTK is positioned to scale its tech to optimize the partnerships underpinning the entire influencer marketing industry.


Snapchat now lets subscribers share AI-generated snaps
Snapchat is introducing new AI-powered features exclusive to Snapchat Plus subscribers, including the ability to generate images from text prompts to share with friends. By tapping an "AI" button in the camera toolbar, users can type prompts like "futuristic disco" and Snapchat's generative AI will produce a related image to customize, caption, and send. Plus members also gain access to extending photos using AI, which digitally zooms out from a close-up shot by having the technology fill in the surrounding environment.

On top of those tools, subscribers get one free monthly pack of the app's AI-enabled selfie lenses called "Dreams," which now work on photos with multiple people. The new subscriber perks add to Snapchat's growing suite of AI offerings like its public chatbot and ChatGPT-powered lenses. As platforms race to rollout generative AI capabilities, Snapchat is leveraging the technology as a subscription driver - letting members pay for exclusive access to more robust creation tools and content augmentation enabled by its algorithms.


Twitch loosens its policy on sexual content
Twitch is updating its policy on sexual content after feedback that the rules were confusing and unfairly penalized female streamers. The platform will now allow some previously banned content, including visible breasts and genitals in drawings or sculptures, as well as erotic dances, as long as the stream has a mature content warning label. The change aims to align Twitch's policies with industry standards.

However, sexually explicit material like sex games and pornography remains completely prohibited. Though mature labeled content can still be found by searching, it will not appear as homepage recommendations. Twitch hopes the updated policy will reduce disproportionate enforcement against women streamers by distinguishing between mild sexual suggestiveness and hardcore sexual material. While loosening restrictions in some areas, Twitch maintains it still aims to keep much of its site free of overtly sexual content.


TikTok invests $1.5B in Indonesia e-commerce market
In a strategic move that echoes the evolving landscape of the global creator economy, TikTok has announced its acquisition of a majority stake in Tokopedia, Indonesia's leading e-commerce platform. This $1.5 billion investment, a significant escalation in the digital commerce arena, marks a turning point for TikTok, transcending its origins as a short-form video app to a formidable player in the e-commerce market.  The deal, expected to close in the first quarter of 2024, involves TikTok obtaining a "controlling stake" in Tokopedia, a move that will not alter the existing share distribution with its current parent, Indonesian tech conglomerate GoTo. Reports estimate TikTok's stake at about 75%.

The integration will see TikTok's commercial features, part of TikTok Shop, being subsumed under the Tokopedia brand. This merger not only expands TikTok's digital footprint but also augments its capacity to serve the burgeoning market of Indonesian consumers and micro, small, and mid-size businesses (MSMBs).  TikTok, owned by ByteDance and operating globally out of Beijing, Singapore, and Los Angeles, sees this venture as a synergistic opportunity to leverage GoTo's existing digital financial services and on-demand services via Gojek, enhancing the scope and scale of Tokopedia. The financial dynamics of this arrangement grant GoTo an ongoing revenue stream, proportionate to Tokopedia's growth and scale.
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How Influencer Bianca Ingrosso Built Multimillion-Dollar Beauty Brand - Insider
Swedish influencer Bianca Ingrosso, known as a part of the 'Kardashians of Sweden,' has successfully expanded her beauty brand, CAIA Cosmetics, into the global market, including the US and UK. Founded in 2018 with a team including her manager Vanessa Lindblad and industry veterans Mikael Snabb and Jesper Matsch, CAIA Cosmetics has surpassed $50 million in revenue in 2023 and is experiencing a 30% year-over-year growth.  Ingrosso's background in the entertainment industry, combined with her family's fame in the Swedish music and entertainment scene, played a crucial role in the brand's initial success. Yet, she emphasizes that CAIA is much more than her celebrity status, citing high-quality products and a keen understanding of customer needs as key factors.

The brand's strategy includes a mix of online and traditional marketing, leveraging entertainment collaborations and social media presence.  Despite the crowded beauty market, CAIA distinguishes itself with unique offerings like the "Scandinavian glow" and interactive customer engagement, including tutorials and responsive communication. The brand's adaptability was evident when it shifted its approach following customer feedback on its advent calendar, switching to full-sized products.  As CAIA ventures into competitive markets like the US and UK, Ingrosso remains confident in the brand's potential, supported by its success in countries like Germany, where her personal fame is minimal. CAIA's growth demonstrates the evolution of influencer-led brands in the global beauty industry and highlights the significance of product quality and customer connection in achieving international success.


TikTok becomes biggest non-gaming app - Fortune
TikTok has generated over $10 billion in global consumer spending, making it the first non-gaming app to hit this milestone. According to Data.ai, TikTok added nearly $4 billion in 2022, largely driven by users purchasing virtual coins to tip content creators. So far, only 5 mobile apps have surpassed $10 billion - popular games like Candy Crush, Clash of Clans and Honor of Kings. But with projections of $15 billion in total spending next year, fueled by users spending a full work week's worth of time monthly on the platform, TikTok looks primed to become the highest grossing mobile app ever. The figures don't even include sizable advertising and emerging ecommerce revenues.

With exponential growth in engagement and money flowing through the app, TikTok seems poised to soon overtake gaming giants. However, even as spending and usage continues skyrocketing, TikTok still faces ongoing political backlash and calls for bans over security concerns in the US. But its runaway commercial success continues to strengthen its market position.


The Skin Care Industry's Secret Weapon? Kids on TikTok - Bloomberg
Amanda Little's article sheds light on the disturbing trend of "baby beauty" influencers on TikTok. She spotlights 7-year-old Haven Garza and others like her, who demonstrate high-end beauty products to millions of followers. This phenomenon, mirroring teenagers' "get ready with me" trend, raises critical concerns about the exploitation of children in marketing and the psychological impacts on young, impressionable audiences.  

Little criticizes the beauty industry and social media platforms for targeting young girls with products like Drunk Elephant and Baby Dior's youth lines. She also notes the lack of critique from fashion media, except for a few like journalist Kirbie Johnson. The trend not only exposes children to harmful chemicals but also fosters an unhealthy obsession with appearance, correlating with mental health issues. Little urges industry leaders to consider the ethical implications and prioritize the well-being of young consumers.


Alix Earle wants to start a brand and share the process on her podcast - Glossy
Alix Earle has rapidly risen to TikTok fame in 2023, amassing over 6 million followers with candid videos on nights out, skincare and more. After reinventing the "Get Ready With Me" trend into engaging storytelling, the 22-year-old launched the podcast "Hot Mess with Alix Earle" on Alex Cooper's network. Earle hopes to further connect with fans by giving them a deeper look at her journey. She's also scored major brand deals, being named a L'Oreal ambassador, collaborating with Tarte and Benefit, appearing in Ulta ads and seeing products she endorses fly off shelves from what's dubbed the "Alix Earle effect."  

With highlights like making Forbes' Top Creators list and establishing a scholarship, Earle calls giving back the most meaningful achievement. Looking ahead, she wants to document the process of building her own brand through her podcast. After finding fame by being real and relatable, Earle aims to continue engaging her audience in 2023 with transparency around chasing the next level of success.
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