Your Weekly Influencer Marketing Update 🚀
19.10.2020 / #50
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🤿 This week’s Deep Dives 🤿
📱Instagram to crack down on UK influencers' 'hidden advertising'📱
The Competition and Markets Authority in the UK has investigated the issue of “hidden advertising” by celebrities and influencers on Instagram and has expressed concern that the platform is not doing enough to tackle it.
“For too long, major platforms have shied away from taking responsibility for hidden advertising on their site,” said Andrea Coscelli, the chief executive of the CMA.
Facebook, Instagram’s owner, has now committed to a set of measures that include “systems to spot posts” that have not been disclosed properly.
Instagram l apparently will report regularly to the CMA, which notes that these commitments apply to all Instagram users in the UK or content that is directed towards UK-based consumers.
“We’re pleased to be working with the CMA on our continued efforts to help people be transparent about when they are paid to post content on Instagram,” said a spokesperson for Facebook. “We are also proud to be launching a programme with Media Smart to help educate young people about branded content and how to identify it.”
Instagram is benefitting from the shift away from traditional media, and their revenues are expected to rise a whopping 47% this year to reach $13.9bn, according to eMarketer.
💡 Our Opinion
We “sell” influencer marketing as an honest and authentic way of sharing messages through third parties that are not our own, but at the same time, the industry has created an ecosystem that (let’s be honest) isn’t exactly transparent or authentic. If we want honesty and authenticity to be at the forefront of our practice, there should be a want to change things.
A few weeks ago we discussed an article in the New York Times where an agency noted it had paid influencers for its #MaskUpMizzou campaign, (“this is an advertising campaign, right?”) but still managed to make the content appear ambiguous when pushed live, omitting paid partnership tags, as well as choosing to not use clear labels such as paid or sponsored. This is just a recent example, with many others out there.
Sadly, it appears that these rules will not be taken seriously until a) there is more of a global regulation standard when it comes to social media advertising (consider the fact that the number of Instagram users with a 100% single-country concentrated audience is very low indeed), and b) there is a heavier (financial) punishment for those that don’t adhere to the rules.
If we as an industry collectively choose to fly the “influencer marketing is authentic” flag, then transparency and honesty are non-negotiables.
⚽ Sponsoring a Fifa 21 esports team can help TikTok own the gaming zeitgeist ⚽
Typically, eSports creators are active on Discord, Reddit & Twitch, but TikTok is looking to change this landscape by partnering up with FIFA 21’s eSports team, Tundra.
Jana Ulaite, head of brand and partnerships marketing, TikTok Europe, said of the teamup: “Our users love to share their winning gameplays, rituals and triumphs, while also watching the best in the business go head to head in international tournaments. We can’t wait to see what team Tundra has in store for us for FIFA 21.”
The platform has picked a FIFA partnership over League of Legends or Fortnite. FIFA’s 3.3bn TikTok views to date are dwarfed by Fortnite (91bn).
According to the article, FIFA sits at the cross-section of gaming, sports and fitness, and suits the platform’s short-form template perfectly.
In addition to TikTok, the sports brand, Kappa, has also just announced a partnership with Tundra, explaining:
”We grew our brand equity in the sector off the back of these recent partnerships and we are getting frequent enquiries from other eSports teams and organisations. eSports fans are a demographic that perfectly fits with Kappa’s core audience and target group of dynamic and young consumers looking to get most out of life.”
Overall, TikTok will look to grow its gaming ambitions, teaming up with Epic Games (Fortnite) to develop a new in-game, “emote.” Back in June, it ran its first eSports competition (the TikTok cup) on Twitch. The platform has also started buying up developers in China and has its own gaming branch.
💡 Our Opinion
This piece is the latest in a long line of proof that shows us that TikTok does things a little differently. Opting to actively sponsoring a specific eSports team is the latest example of TikTok’s creator-heavy approach. In my experience, Instagram tends to stick more to “being a platform” and you could argue that it comes with a bit of an “ivory tower” feel. TikTok tends to shows its face, builds relationships and keeps its finger (publicly) on the pulse.
While competitor Amazon (that owns Twitch) will more than likely dominate the eSports and gaming space for the next few years. There are valuable crumbs to pick up on the back of its success. This sponsorship approach allows TikTok to find its footing within the eSports realm, generate awareness on a rival platform and dig into the feasibility and function of its platform as a specific (entertainment focused) content distributor within a wider ecosystem, while at the same time learning more about gaming and its future.
📰 Headlines
Breakingviews - Italian Insta-star IPO to test influencer model
At the 4 times sales multiple that Prada shares fetch, Ferragni’s group could be worth 80 million euros. It would be tiny, but likely the first IPO to feature a one-person brand solely built on web self-promotion. As the pandemic forces companies to reduce marketing costs, however, some are questioning the influencer model. Investors, too, will need to be convinced that digital businesses built on pretty faces are more than skin-deep.
Teespring is offering creators the ability to sell digital merchandise like filters
Teespring decided to move into the digital merchandise space after a few influencers asked if it was something they could offer their fans, CEO Chris Lamontagne and vice president of marketing, Les Green, told The Verge on Wednesday. While Lamonatagne and the team had worked for a while on developing digital products, it was the pandemic that accelerated their plan to roll it out to creators who use Teespring. That includes people on YouTube, Instagram and, most recently, TikTok.
'I'm sick of influencers asking for free cake'
Should influencers do more to show their worth to businesses in the future? Ashanti Akabusi thinks this is the way forward: "The influencers who are going to win are those who are experts in their field, and who have built credibility with their audience.
Sergio Aguero Announces His Esports Team, KRU Esports
We’re seeing a lot of really interesting names dive into esports lately. In particular, the Football community seems to be attracted to the appeal of esports. Manchester City’s own Sergio Aguero has been streaming often on Twitch, which perhaps is one of the catalysts for his own esports team, KRU Esports. That’s right, the footballer is moving into the esports realm! Unlike certain other orgs, KRU Esports is reported to be completely self-funded by Aguero himself, and all earnings will be reinvested into the team.
TikTok chief security officer says its servers are already separate from ByteDance
TikTok’s chief security officer says in new court documents that the US Commerce Department has mischaracterized how the app stores and secures user data, as the company renews its motion for a preliminary injunction against the Trump administration’s looming ban.
Oracle founder donated $250,000 to Graham PAC in final days of TikTok deal
Oracle CEO Larry Ellison donated $250,000 to a super PAC supporting Sen. Lindsey Graham’s (R-SC) reelection campaign as his company closed in on a coveted position as TikTok’s US technology partner.