Influence Weekly #325 - WeightWatchers’ Ozempic hype house backfires

Influence Weekly #325
February 23rd, 2024
Executive Summary
  • YouTube Creator MKBHD Joins Ridge As Chief Creative Partner
  • WeightWatchers’ Ozempic hype house backfires
  • How Zappos is reworking its influencer program
  • Butterfinger doubles down on gaming with streamers and creators to reach younger audiences
Great Reads

What You Need To Know About Snapchat's New Anti-Social Media Ad Campaign
Snapchat's Super Bowl debut highlighted its anti-social media stance, showcasing the app as a privacy-centric alternative to traditional social platforms. With a theme of "Less likes. More love," the campaign underscores Snap's focus on intimate connections over public validation, a narrative consistent since its 2012 launch. This approach, emphasizing privacy and the absence of public-facing features like feeds and third-party likes, aligns with the company's long-standing effort to distinguish itself from other networks.

The campaign arrives amidst Snap's transition to attract new advertisers, following a modest 5% revenue growth in Q4 2023 and a recent staff reduction. Targeting Millennials and Gen Z, Snapchat emphasizes real, unfiltered life moments shared with close contacts. This strategy reflects a broader trend in social media usage, with platforms shifting from social networking to entertainment, leading users towards more private messaging apps. Snapchat positions itself as a solution for younger generations seeking genuine connections, despite challenges in retaining older users. This latest ad initiative reinforces Snap's commitment to offering a social media alternative, aiming to expand its user base beyond the youth demographic.


YouTube Creator MKBHD Joins Ridge As Chief Creative Partner
Popular tech YouTuber MKBHD, real name Marques Brownlee, has joined accessories brand Ridge as an equity investor, executive board member, and chief creative partner. With 18 million YouTube subscribers, Brownlee is one of the internet's top tech reviewers.  The collaboration will see Brownlee leverage that expertise to direct Ridge's brand strategy and design limited-edition wallet and accessory collections. The first co-created product lineup launches in April 2024.  Ridge CEO Sean Frank said Brownlee's authentic approach aligns with the brand's commitment to quality and function.

As a long-time customer, his insights will inform product design. Ridge wallets and gear feature a patented slim design with over 4 million owners currently.  For Brownlee, it represents his first major brand partnership at this scale. He will have significant influence over Ridge's journey beyond one-off collaborations, helping shape everyday carry products. Brownlee has promoted Ridge since 2020 but can now more deeply imprint his perspective.  The deal exemplifies a top creator investing their digital authority into an aligned brand for creative control. Brownlee's industry clout, audience understanding, and passion for Ridge gear position the union for success. It also sets a precedent for influencers to pursue equitable brand collaborations that transform them from promoters to partners.
Campaign Insights

WeightWatchers’ Ozempic hype house backfires
WeightWatchers attempted to rebrand itself by enlisting influencers to promote its new prescription weight loss drug service. However, the marketing play backfired. The brand offered money to creators documenting their experiences with obesity drugs like Ozempic.  But some felt exploited or triggered. Having faced trauma from WeightWatchers' long-time diet focus, they criticized the partnership request. Others were uneasy endorsing something not personally tried.  The subsequent "GLP-1 hype house" event only irritated more. As the formerly diet-centric company struggles with sales declines, its shift to push controversial weight loss shots doesn't sit well with many loyalists or influencers.  

While still maintaining some supporters, WeightWatchers failed to read the room with its edgy marketing ploy. Influencers called out the disconnect between flashy drug promotions and needed sensitivity around past brand harm.  It exemplifies misjudging audience dynamics during major rebrands. When attempting to cater to new demographics, companies must still acknowledge impacted long-time customers. Through its callousness, WeightWatchers showed how not to reinvent a legacy brand in the modern media landscape.


Why Caliray dropped its new under-eye brightener on TikTok Shop before Sephora
Beauty brand Caliray launched its new under-eye brightener on TikTok Shop on February 15, before the product hits Sephora and its own website on February 20. The DTC clean beauty company has increasingly focused on TikTok over the past year, seeing major sales lifts when products go viral.  

Caliray says Sephora supports brands investing in influencer marketing and TikTok specifically, having seen the platform's sales impact firsthand. The brand's latest launch is tailored for TikTok - an "instant gratification" product that shows obvious before-and-after results perfect for creator content.  Leading up to the TikTok Shop drop, Caliray seeded the brightener to over 200 influencers who earn commissions on sales driven by their posts. The brand also held an event previewing the product for press, influencers, and TikTok creators, who were excited to capture shoppable content.


Shein to debut spring-summer collection in shoppable livestream
Shein will showcase its spring-summer 2024 collection through a shoppable livestream event this Sunday, called "Shein Live: Front Row." Hosted by Shein personality Renee Ariel, the show will feature influencers Azra Mian, Aisha Mian, actress Teala Dunn, and podcast host Jenicka Lopez.  This follows a similar livestream for the fall-winter collection last year.

Viewers can watch on YouTube, Instagram, and Facebook, and shop directly through the Shein app.  Livestream shopping is gaining popularity, with Shein joining retailers like Best Buy and Ulta. Shein also explores offline experiences with pop-up shops and reportedly filed for an IPO late last year.


PrettyLittleThing airs new season of YouTube shopper-tainment show The Pink Courtroom
Online fashion retailer PrettyLittleThing has launched the third season of its hit YouTube court show "The Pink Courtroom." The series sees influencers Indiyah Polack and Nella Rose preside over public disputes, rendering verdicts on sticky situations.  It's proven a winning marketing formula for PrettyLittleThing. Since its debut, the YouTube program has driven over 350,000 new channel subscribers and 66 million cross-platform views. Shoppable video links let viewers buy featured outfits.  The entertaining format, with rival guests pleading their case to uncover who's lying, has sparked a cultural phenomenon - from dedicated fan pages to 50,000+ TikTok clip uses. The new season promises more viral moments as the influencer-judges encounter dramatic stories.  

Past episodes have consistently topped 1 million views, exemplifying PrettyLittleThing's knack for valuable community content. The series blends engagement, revenue and branding as influencers display the brand while driving viewership and sales.  It shows how fashion labels increasingly leverage creative YouTube programs as marketing vehicles. When designed for target audiences, original shopper-tainment formats can pay dividends across platforms. Expect more brands to push influencer-helmed shows that embed commerce.


TikTok Shop and the absurd $1.51 bag of Mexican chips
In an effort to expand its e-commerce footprint, TikTok has been heavily subsidizing merchants, attracting sellers with compelling offers like significant discounts and free shipping, as detailed in a Fortune article by tech correspondent Jason Del Rey. The story centers on a small Texas-based Mexican candy shop, Las Delicias Mexicanas, which ventured into TikTok Shop at the encouragement of the owner's wife.

The platform significantly boosted their sales, with the shop experiencing a viral moment that led to over $100,000 in revenue from TikTok Shop within two months. However, this rapid growth also presented challenges, including a backlog of orders due to postal service delays, leading to customer dissatisfaction and financial strain from refunds. TikTok's strategy includes covering a large portion of shipping costs and offering low commission rates to attract and retain sellers, though these are expected to rise, hinting at a future where the platform may reduce subsidies. This approach has placed pressure on traditional retailers and highlighted the competitive edge of Chinese-based online shopping platforms in the U.S. market, leveraging low prices to capture consumer interest.


How Zappos is reworking its influencer program
Zappos is refreshing its marketing strategy by emphasizing inclusivity and real-world engagement in its influencer program, moving away from high-profile influencers to everyday people for its campaigns. The shift, aimed at fostering authenticity, was highlighted in its 2024 "Start Where You Are" running shoe campaign, which showcased a diverse group of runners, including a new mom and a veteran. This pivot reflects Zappos' broader commitment to inclusivity, as seen in its Adaptive branch for customers with disabilities.

The company plans to continue this approach by incorporating real-life stories across its marketing channels, including social media and its mobile app, and is exploring expansion onto TikTok. Zappos' Chief Marketing Officer, Joe Cano, emphasizes the importance of authenticity and real-life impact over sheer influencer reach, indicating a strategic focus on quality and meaningful connections with its audience. As Zappos approaches its 25th anniversary, it is planning celebratory initiatives, including capsule collections and throwback shoes, alongside influencer collaborations and customer engagement events, aiming to blend nostalgia with its forward-looking, inclusive marketing ethos.


Why John Deere is daring a tech influencer to farm
John Deere has embarked on an innovative influencer marketing campaign by challenging tech influencer David Cogen (@theunlockr) to grow corn on a 20-acre field in Des Moines, Iowa, and make a profit. Cogen, with no prior farming experience, will undertake all farming activities from tilling the soil to harvesting. The collaboration aims to educate the public about the complexities of farming, including business and technological challenges.

John Deere's partnership with Cogen, who has a significant following on social media, seeks to provide an authentic farming experience and demonstrate how technology supports agricultural practices. Agriculture influencer Chelsey Erdmann (@ohthats_chelsey) will mentor Cogen, guiding him through the farming process. The campaign, supported by PR agency Racepoint Global, will feature updates across Cogen's social media platforms, culminating in a comprehensive YouTube overview. This initiative reflects John Deere's efforts to connect with a tech audience and highlight the critical role of technology in modern agriculture.


Benefit hosts an influencer trip exclusively for TikTok Shop creators
Beauty brand Benefit Cosmetics flew 10 TikTok Shop influencers to its headquarters, putting them up at a luxury hotel, to strengthen relationships with this new type of creator. Benefit has seen major success since launching its Fan Fest mascara exclusively on TikTok Shop last summer, with triple-digit sales growth.  It now works with over 3,000 TikTok Shop creators, up from 2,000, who promote Benefit products for sales commissions without obligations. The brand vetted trip attendees as deeply as other partners to ensure cultural fit.

During the trip, Benefit previewed upcoming launches and hosted a live shopping session.  While not required, attendees actively posted - generating over 350 posts and 7 million impressions. Benefit aims to build long-term partnerships as TikTok Shop expands its influencer pool beyond traditional beauty experts.  The trip gave niche creators unfamiliar with Benefit insider brand access and education they can infuse into content. Several called it an honor to grow with the brand this way.  For Benefit, it was a test that could establish an ongoing model for cementing influencer ties and sales. The results hint that special treatment breeds advocacy and ROI. Expect more brands to follow suit in worshipping TikTok Shop influencers.
Interesting People

Chelsie Hall: Shaping The Future Of Content With ViralMoment
Chelsie Hall founded ViralMoment in 2021, an AI company that focuses on analyzing video content at scale to provide social media intelligence. The platform leverages advanced AI to understand trending topics across millions of daily videos.  ViralMoment identifies influencers organically talking about specific brands or products to enable targeted partnership campaigns. Its precision helps brands connect with creators genuinely interested in promoting them.  The technology also alerts creators and brands around viral moments and trending topics relevant to them.

These insights inform content strategies to ride waves of attention. ViralMoment aims to illuminate positive conversations while combatting harmful content.  Hall believes generative AI brings both creativity and authenticity concerns with the explosion of easily produced content. But ViralMoment is designed to see inside videos to clarify this "black hole" of analysis. For example, it spotted an emerging "Mob Wife" beauty aesthetic weeks before it peaked, allowing a client to successfully shift products.  Upcoming community management tools will parse social comments and recommend tailored brand responses. As online video surges, ViralMoment wants to be a data-driven partner for brands and creators overwhelmed by fragmented platforms.  The vision is to simplify understanding massive visual content universes beyond one's echo chamber. ViralMoment offers clarity amidst the fog - helping users optimize engagement through strategic insight.


MrBeast says his mom controls his company’s bank account
YouTube mega-star MrBeast brings in up to $700 million annually across his channels and ventures, but claims he's not yet rich since the money gets reinvested. With over 239 million YouTube subscribers, MrBeast, real name Jimmy Donaldson, is the platform's top creator. His elaborate competition videos and charitable stunts regularly exceed 100 million views.  That fuels ad and sponsorship revenue poured into new projects - including chocolate bars pulling $100 million a year, a delivery restaurant, and tech startups.

In total, Donaldson's empire likely clears over $500 million yearly. Seeking at least $150 million in funding last year valued operations around $1.5 billion.  Yet he calls the continual growth focus "stupidity," as profit still proves elusive. His mom controls all finances as chief compliance officer - Donaldson lacks bank account access. But with possible nine-figure streaming deals ahead, his reluctance to splurge may soon soften.  For now, MrBeast claims reinvestment prevents wealth. But as revenue balloons and backers buy in, he can't deny his influencer realm commands serious value. The world's top YouTuber has built a corporate beast - even if he doesn't reap personal riches just yet.


China-loving foreign influencers move in on mainland social media offering fitness, dance tips or simply affection for country
Foreign influencers are gaining massive followings in China by leveraging special skills or expressions of admiration for the country. American singer Annie Lowdermilk, known as Tang Bohu, won fans for flawlessly performing Chinese opera. Her TV appearances have brought over 3.6 million Douyin followers.  Meanwhile, Russian Vladislav Kokolevskii's exaggerated pro-China rhetoric, like wishing the nation happy birthday while waving its flag, has earned the moniker "FuLaFu" 13.3 million followers - and backlash for the over-the-top style.  

German fitness guru Pamela Reif blends yoga, Pilates and dance in workout videos that attracted 11 million Bilibili subscribers. A China tour had her sampling local cuisine and martial arts.  Latvian actor Danny Ray's resemblance to a young Leonardo DiCaprio brings 14.8 million Douyin fans. His fluent Chinese and film roles, including in a Jackie Chan movie, boost his popularity.  And Ukrainian dancer Aleks Kost is considered Douyin's top hand dancer, thanks to 16.6 million followers trying to mimic his skills.  Foreigners can clearly leverage mainland social media for fame and deals if they understand local culture. But popularity through effusive China praise also invites criticism.


Adelicious: Navigating The Audio Revolution
Adelicious, co-founded by David McGuire and Pascal Hughes in 2020, is a network that seeks to redefine podcast monetization by offering a bespoke, hands-on service to podcast creators. CEO Andrew Goldsmith emphasizes the importance of providing a fair representation in the market for podcasters, ensuring they maximize revenue opportunities in the digital economy. The invite-only network prides itself on supporting content that is premium and representative of society, including both large shows and those with smaller audiences. Adelicious aids podcasters in audience growth, employing tactics like cross-promotion and marketing support, while also acting as an extension of the creators to align podcast messages with advertisers' goals.

The network values the intimate bond between podcasters and their audience, encouraging the use of multiple media platforms to broaden reach. Goldsmith also highlights the importance of consistency and a multi-faceted monetization strategy, including live events and exclusive content. Adelicious’s boutique size allows for agility and a personalized approach, positioning it as a key player in supporting the podcasting renaissance and the evolving demands of the creator economy. 



 
Industry News

Want to stop livestreaming? That’ll be $42,000
In China's booming livestreaming industry, talent agencies recruit aspiring influencers with promises of money and fame. But manipulative contracts trap creators in exhausting, low-paying gigs they cannot exit without paying exorbitant penalties.  Agencies compel influencers to livestream for hours daily over multi-year contracts. However, most earn under $700 monthly in virtual gifts from viewers. Quitting requires paying agencies back for training and equipment, often totaling tens of thousands of dollars.  

As disillusioned creators try to break contracts, legal disputes have surged. Courts ordered payments up to $42,000 for breach of contract in recent cases. The deals offer no labor protection since they are business, not employment, contracts.  Critics say aggressive recruiting ignores the physical and mental toll of constant livestreaming. Low pay and other abuses drive breach of contracts. While China introduced some regulations around agencies, more concrete protections are still lacking.  Lawyers report a spike in disputes as exhausted influencers exit. Agencies sometimes sue to deter others from leaving. The livestreaming dream often becomes a nightmare that creators pay dearly to escape. More oversight is needed to rein in predatory contracts in this largely unregulated industry.


Female creators and UGC content dominate the influencer marketing industry, report finds
Move over "de-influencing," the influencer marketing industry is thriving, projected to reach nearly $20 billion this year, according to a new report from Collabstr, an influencer marketplace. While calls for digital detox trends may be gaining traction, creators are finding new ways to connect with audiences and drive brand engagement.  The report reveals a clear shift in the influencer landscape, with female creators taking center stage.

They comprise a dominant 70% of the analyzed profiles, highlighting their significant influence on consumer preferences. Interestingly, Instagram and TikTok remain the top platforms for influencer collaborations, each accounting for 42% of paid partnerships. YouTube, once a major player, surprisingly holds a mere 2% share.  However, the most significant trend identified is the surge of user-generated content (UGC). Over half of creators on Collabstr are now open to offering UGC services, reflecting a 93% increase from the previous year. This signifies a growing preference for authentic marketing strategies that leverage the trust associated with everyday people's recommendations.


TikTok faces threat of hefty fine as EU opens formal investigation over potential breach of Digital Services Act
The European Union has initiated a formal investigation into TikTok, owned by Beijing-based ByteDance, for potentially breaching the Digital Services Act (DSA), specifically concerning the platform's obligations to ensure child protection and transparent advertising. EU industry chief Thierry Breton announced the probe, citing concerns over addictive app designs, insufficient age verification, and default privacy settings that may not adequately safeguard minors.

The investigation will also examine TikTok's algorithmic practices that could lead to behavioral addictions and the "rabbit hole" effect, as well as the platform's efforts to provide a secure environment for young users. TikTok could face penalties up to 6% of its global turnover if found in violation of DSA regulations. This action marks the second DSA investigation, following scrutiny of Elon Musk's social media platform X. TikTok responded by emphasizing its commitment to user safety, especially for teens, and expressed readiness to discuss its protective measures with the European Commission.
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Candy giant Butterfinger doubles down on gaming with streamers and creators to reach younger audiences - Digiday
Candy brand Butterfinger is increasing its investment in gaming influencers and streamers in 2022 to reach younger audiences. As people spend more recreational time online, the brand has shiftedbudget away from linear TV ads toward areas like social media, streaming, and gaming content creators.  Butterfinger aims to establish an "always-on" presence with gaming audiences this year by boosting its "Game Better" campaign spend by nearly 60%. It will expand partnerships with gaming personalities on Twitch and other platforms through its in-house team and agencies.  

Recent collaborations have offered gamers in-game items and sweepstakes entries. The approach has built momentum since Butterfinger's acquisition in 2018, now reaching 1.5 billion gamers.  While still dwarfed by social and streaming media budgets, gaming ad investments grew 7% last year to $8.6 billion. As gaming becomes entertainment and community for younger demographics, brands continue targeting the space.  Butterfinger stresses authentic collaborations that add value for gamers, not just billboard ads. As it increases gaming creator ties, the candy brand also wants to foster long-term, meaningful culture partnerships to embed itself in gaming worlds.


At 70, This Instagram Influencer Shows That It’s Never Too Late - The New York Times
Lyn Slater, a 70-year-old former professor, has emerged as a significant style influencer under the moniker "Accidental Icon," boasting nearly a million followers across social media platforms. Her journey from academia to digital fame, highlighted in her forthcoming book "How to Be Old: Lessons in Living Boldly From the Accidental Icon," showcases her unique approach to fashion and aging. Slater's narrative is marked by her embrace of continual self-reinvention and her drive to authentically express her identity through avant-garde fashion choices.

Initially gaining attention for her distinctive style and insightful fashion blog, Slater's influence expanded through notable campaigns with brands like Valentino and Mango, challenging the fashion industry's age norms. However, this rapid ascent led to a personal crisis, as the pressures of influencer life caused her to feel disconnected from her core values and community. Slater's reflections offer valuable insights into the balancing act between digital visibility and personal integrity, underscoring the importance of maintaining an authentic self in the influencer marketing industry.


How Bethenny Frankel Grew Her Influencer Business to $3.2M a Year - Insider
Bethenny Frankel, the former "Real Housewife," has become a social media influencer, earning $3.2 million in 2023. Her authenticity and humor on TikTok, where she reviews beauty products and critiques expensive brands, resonated with audiences.

She prioritizes honesty over freebies, charging brands for using her content and negotiating fair fees for endorsements. This transparency has built trust and made her a valuable partner for brands. While she's not interested in launching her own beauty line, she's open to exploring other avenues, like acting. Frankel's success highlights the power of authenticity, strategic thinking, and staying true to oneself in the influencer world.

 
Edited by New Monaco Media
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