How Influencers Became Key to Big Brands During the Pandemic — and Why They'll Continue to Grow

Sam Blake

Sam primarily covers entertainment and media for dot.LA. Previously he was Marjorie Deane Fellow at The Economist, where he wrote for the business and finance sections of the print edition. He has also worked at the XPRIZE Foundation, U.S. Government Accountability Office, KCRW, and MLB Advanced Media (now Disney Streaming Services). He holds an MBA from UCLA Anderson, an MPP from UCLA Luskin and a BA in History from University of Michigan. Email him at samblake@dot.LA and find him on Twitter @hisamblake

How Influencers Became Key to Big Brands During the Pandemic — and Why They'll Continue to Grow
  • Influencer marketing has surged during the pandemic as more consumers have moved online and brands have been forced to adapt to new challenges.
  • The rise of ecommerce and social media continues to usher in a wave of less formal and potentially cheaper marketing from online icons directly connected to audiences that brands can target.
  • Marketers expect the trend to continue, which could lead to more unexpected brand partnerships, like a KFC line of Crocs or Forever 21's Cheetos apparel.

Mix together a cup of cold brew, three pumps of caramel syrup, a splash of whole milk and a generous portion of TikTok and you've got yourself "The Charli" – Dunkin' Donuts' new menu item promoted in partnership with Charli D'Amelio, a superstar social media influencer and the drink's namesake.

Influencer marketing campaigns are not new, but the coronavirus pandemic has accelerated their appeal as companies have been forced to ramp up their online presence. Marketers expect that to continue, due to a combination of changing consumer behavior, a growing sophistication of data and analytics, and tighter ad budgets.

As these forces take shape, subscription streaming services expand and cable's decline continues, could it spell the end of TV commercials?


The Rise of Influencer Marketing

Fundamentally, an influencer is someone with a level of knowledge, expertise or social following that enables them to, well, influence other people's decisions. That premise has existed for a long time, but the internet and social media gave rise to a new capability for companies to target specific audiences with more precision than a television or radio commercial. As a result, niche, direct-to-consumer businesses offering specific products, and online influencers to peddle those products, have bloomed.

Before the pandemic set in, Influencer Marketing Hub, a research firm, reported influencer marketing was expected to grow to a $9.7 billion business in 2020, nearly a 50% increase from 2019. More recent evidence suggests that companies are still piling in, even faster than predicted.

Influencer MarketingHub's 2020 report, based on a survey of 4,000 professionals, forecasted a massive rise in the growth of influencer marketing. Courtesy Influencer MarketingHub

In the quarter from June through August, for example, across a sample of 4,500 ecommerce retailers, sales and customers driven to brands' websites through YouTube influencers are up 80% year over year, according to MagicLinks, an L.A.-based social media marketing company that helps firms track the performance of their influencer campaigns. Applications from influencers wishing to use MagicLinks' sales tools have grown nearly fivefold from the start of the pandemic. And across MagicLinks' retail customers, which include the likes of Walmart, Target, L'Oreal and Best Buy, influencer-driven sales are up 115%.

Several other marketing agencies also told dot.LA they've seen increased spending on influencer content, and an expansion of the types of companies that use influencer marketing, compared to pre-COVID.

Part of that is out of necessity. With film production shut down due to the pandemic, traditional commercial advertising was hampered. And with marketing budgets crimped, potentially cheaper advertising routes, such as a well-targeted influencer campaign, grew more attractive.

Influence in the Wake of Ecommerce

The pandemic has also caused ecommerce to skyrocket and led people to spend more time on social media, both of which have increased the supply of potential customers for brands to target with influencers.

"Consumers crave real-life stories and authenticity, and influencers are able to highlight brands in a way that feels real and accessible. We are seeing that during the pandemic, this need is further heightened as more consumers are spending more time on social platforms," Grubhub's director of content and social Mandy Cudahy told dot.LA.

The growing sophistication of data and analytics on the effectiveness of influencer marketing has also helped companies create more targeted ad campaigns likely to reach spenders. For example, tools are improving to help brands find the right influencer, track their ability to drive purchases, and even predict how well an influencer campaign will do.

"There's been a much bigger push around nailing down the attribution and ROI," said Kevin Gould, co-founder of three L.A.-based ecommerce brands that rely heavily on influencer marketing and collectively earn over $60 million in annual revenue.

That push, in turn, is helping to nudge brands that have historically shied away from influencer marketing. Part of what has held them back is the fact that the data from traditional channels like television and radio advertising is far more robust than what's available in the influencer space, if only because it is relatively new.

"You're going up against hard sets of data since like the birth of Macy's, so it didn't become a priority," said Jennifer Piña, MagicLinks' director of brand partnerships. "Now it's being forced to become a priority."

As a result, bigger, more traditional brands are moving into what has until now been a channel primarily used by smaller, direct-to-consumer brands. Tito's Vodka, for instance, ran its first influencer campaign in August with Brooklyn-based First Tube Media. Prior to the campaign, "Tito's had never spent a dollar in influencer marketing," First Tube CEO Andrew Beranbom told dot.LA. Superdry, a publicly-traded British clothing company founded in 1985, is partnering with MagicLinks to launch its first large influencer campaign in advance of the holiday season.

How Influencers Change What We Buy, and What They Make

KFC crocs

KFC Crocs, an unholy creation of influencer marketing.

Influencer marketing has also given rise to new partnerships between brands that arguably have nothing to do with each other, with influencers as the linchpin linking them together. Examples include a KFC line of Crocs, e.l.f. Cosmetics' Chipotle burrito-inspired handbag and makeup kit, and Forever 21's Cheetos apparel line.

"It's this idea of like, a brand is a brand," said Piña. "What they actually sell or what people purchase from them is oftentimes irrelevant. It's more about the packaging and the moment and the feel and that's what social media does: it creates excitement for something that is not necessarily exciting. Like Crocs: Crocs is like your dad's brand. But it can immediately become cool, at the drop of a pin, once you get the right influencers involved."

Even as data attribution improves and consumers spend more time online in the land of influencers, one key downside to influencer marketing remains: limited control. A company can manage every element of a commercial shoot or Facebook ad, but using an unscripted TikTok or Instagram influencer requires letting go.

"Brands in some categories historically have been super fearful of letting influencers tell their story because it is so important to the sanctity of the brand to keep the messaging really succinct and in line with the brand guidelines," Piña said.

Yet that informality is part of the appeal of influencer marketing.

"Brands get stuck on needing to be perfect or scripted, whereas influencers talk to you like they're your next-door neighbor," said Brian Meert, chief executive of L.A.-based AdvertiseMint, a digital advertising agency. "It's very organic; it doesn't feel like a pushy ask. I think those kinds of elements have enabled us to grow sales for our clients using more of these influencer- and consumer-generated type videos."

Piña noted that while Ralph Lauren, a premium fashion retailer, has been wary of using influencers because of "brand safety," the company recently approached MagicLinks to build out a year-long TikTok strategy. Even as the social video giant's fight with the White House threatened to upend the living of its influencers, TikTok's hold on the traditionally elusive younger demographic – along with other user-generated video platforms like Instagram, YouTube, Twitch and Snap – has become increasingly hard for companies to ignore.

"Any brand that wants to connect with Gen Z, and sell whatever product or service they have, has to engage (with these platforms)," said Glenn Ginsburg, SVP of global partnerships at influencer marketing agency The QYOU. "Moving forward I think we'll see brands start to build deeper relationships with influencers."

Not every brand is poised to get the same value from an influencer campaign, however. An influencer is unlikely to save the day for a travel and tourism company ravaged by the pandemic, for instance. And it remains a challenge to reliably execute an influencer campaign, notwithstanding the emergence of new tools to do so.

"A lot still depends on relationships, conversations and trial and error," said Darren Litt, chairman and co-founder of L.A.-based talent marketplace MarketerHire. "A successful influencer campaign requires a detailed understanding of an influencer's brand, and that's hard to do with tech and AI alone."

Achieving the cost-efficiency of a well-targeted campaign also remains most viable for companies that are best positioned to drive online purchases. Using Kim Kardashian to sell clothing that flatters one's figure, for example, is more likely to drive trackable sales than, say, pushing Pepsi.

"For mass-market products looking to reach a broad audience, TV advertising remains effective because you get the upside of wide reach with the downside of limited targeting," said Litt. That's especially true for products that people don't typically purchase online.

But much like a song that goes viral on TikTok can drive a listening bump on streaming platforms like Spotify, so, too, it appears, can an influencer campaign drive offline purchases.

After all, Dunkin' Donuts saw sales surge following its D'Amelio partnership, even though the girl with over 100 million TikTok followers has reportedly never ordered "The Charli" herself.

---

Sam Blake primarily covers media and entertainment for dot.LA. Find him on Twitter @hisamblake and email him at samblake@dot.LA.

https://twitter.com/hisamblake
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Hello Sunshine Sold for More Than $900M. Now Reese Witherspoon Is Buying It Back.
Image Source: Hello Sunshine

🔦 Spotlight

Hey there, LA.

In Hollywood, every successful story eventually gets a sequel. This one brings Reese Witherspoon back to the company she built.

Five years after selling control of Hello Sunshine in a deal worth more than $900M, Witherspoon is partnering with French production group Mediawan to buy back the Los Angeles media company.

The reported purchase price is in the low-to-mid eight figures, significantly below Hello Sunshine’s valuation when Candle Media acquired a controlling stake in 2021.

That difference tells a larger story than any single Hollywood transaction.

Hello Sunshine was one of the most prominent acquisitions made during the streaming boom, when platforms were spending aggressively and investors placed enormous value on production companies with recognizable founders, established audiences and libraries of intellectual property.

Witherspoon had built all three.

Founded in 2016, Hello Sunshine developed its business around stories centered on women, producing projects including “Big Little Lies,” “The Morning Show,” “Little Fires Everywhere” and “Daisy Jones & The Six.” It also turned Reese’s Book Club into an influential audience and discovery platform that now reaches 6.2 million readers and drives approximately $900M in annual U.S. book sales, according to the company.

By 2021, that combination of talent, intellectual property and direct audience access looked like the foundation of a next-generation media empire.

Candle Media, backed by capital from Blackstone, acquired Hello Sunshine as part of a broader effort to assemble a portfolio of entertainment brands. The company also purchased businesses including Moonbug Entertainment, ATTN: and Faraway Road Productions.

Then the streaming market changed.

Entertainment companies became more disciplined about content spending. The race to accumulate subscribers gave way to pressure for profitability. Production budgets tightened, consolidation slowed and some of the valuations assigned during the streaming boom became difficult to maintain.

Hello Sunshine’s return to founder-led ownership reflects how dramatically the media landscape has changed since 2021. It also gives Witherspoon an opportunity to regain greater influence over the company at a moment when its core assets may matter more than its former valuation suggests.

Under the new ownership structure, Hello Sunshine plans to refocus on premium film and television, Reese’s Book Club and new storytelling and distribution formats. Mediawan brings an international production network, while Witherspoon brings something harder to manufacture: a trusted personal brand and an audience willing to follow her recommendations from books to screens.

That relationship with consumers is increasingly valuable in a fragmented media market. Studios can finance productions. Streaming services can distribute them. Far fewer companies can reliably convince millions of people to care before a project is even released.

For Los Angeles, the deal reflects the increasingly fluid boundary between entertainment company, consumer brand and technology-enabled audience platform. The most resilient media businesses may not be those producing the greatest volume of content, but those that own a direct relationship with a specific community.

The first Hello Sunshine deal captured the optimism of the streaming era.

The second may offer a more focused model for what comes next, with the company once again guided by the founder who understood its audience from the beginning.

Hollywood loves a comeback story.

This time, the company is making one too.

LA Tech Week’s Final Stretch

Still making the most of LA Tech Week? We have organized the remaining events by location to make planning the weekend a little easier:

Event schedules may change, so confirm the latest details with the organizer before heading out.

More from this week’s LA startup and venture scene below.

🤝 Venture Deals

    LA Companies

    • Goodweek raised a $12M seed round led by Adara Ventures to expand its AI management platform for small and midsize businesses. The company brings tools such as ChatGPT, Claude, Gemini and Mistral into one governed workspace and will use the capital to accelerate sales and expand into Latin America and Asia. - learn more

    LA Venture Funds
    • Fika Ventures co-led Otter Health’s $8M seed round alongside Evidenced Capital, with participation from Slow Ventures, Metrodora, CoFound Partners, Patient Capital, SemperVirens and Layout Ventures. The startup will use the funding to scale its AI-powered platform, which helps healthcare payers and providers reduce unnecessary care and manage quality without relying as heavily on traditional prior authorization. - learn more
    • Nant Capital co-led Prolific Machines’ $50M Series B2 alongside Atoms & Bits, bringing the biotechnology company’s total funding to more than $100M. Prolific will use the capital to scale its light-controlled biomanufacturing platform, expand pharmaceutical and biotech programs and begin early work on tissue and organ fabrication. - learn more
    • Family Fund participated in Allara’s $30M funding round alongside new investors Camino Partners and Foreground Capital, while existing backers including Index Ventures and GV increased their commitments. The women’s healthcare company will use the capital to expand AI-enabled care, grow its provider and enterprise partnerships and advance research into hormonal, metabolic and reproductive conditions. - learn more
    • Vida Ventures participated in Soufflé Therapeutics’ oversubscribed $135M Series B, which was led by Juvia Group. The biotech will use the funding to move three lead programs into clinical trials for muscular dystrophy, heart failure and muscle and metabolic disorders while advancing its broader pipeline of targeted RNA therapies. - learn more
    • FJOR participated in LightSprint’s $6.1M seed round, which was led by 645 Ventures. The AI software platform will use the funding to expand its enterprise product and grow its engineering and go-to-market teams as it helps employees across departments make changes to company codebases while keeping engineers in control. - learn more
    • Muse Capital participated in Collective X Health’s oversubscribed $3.2M pre-seed round, which was co-led by Council Capital and Anthemis Female Innovators Lab Fund. The women’s health intelligence startup will use the funding to expand its female-focused research and data platform, meet growing enterprise demand and support new research aimed at closing the women’s health data gap. - learn more
    • Act One Ventures participated in Intake AI’s $2.5M pre-seed round, which was led by Kapor Capital. The startup is building AI agents that automate clinical-trial setup and operations, helping research teams turn protocols into documents, search study materials and transfer approved forms into existing systems. - learn more
    • M13 participated in Ultra’s $62M financing, which included a $50M Series A led by Framework Ventures. The Brooklyn-based robotics startup will use the capital to expand deployment of its AI-powered warehouse robots, which handle packing, sorting and other fulfillment tasks and have already processed more than 500,000 orders. - learn more

    LA Exits

    • Farcaster is being acquired by Balaji Srinivasan’s Network School from Neynar, marking the decentralized social network’s second change in ownership this year. The deal includes Farcaster’s app, protocol repositories and related products, with its new owner planning to introduce a rules-based “social smart contract” governing full participation on the platform; financial terms were not disclosed. - learn more
    • Creator Authority has been acquired by Billion Dollar Boy Group, bringing the agency’s B2B influencer marketing expertise and LinkedIn specialization into BDB’s global creator business. The deal will help Creator Authority scale its work with enterprise brands while strengthening BDB’s presence on the U.S. West Coast and expanding its B2B creator marketing capabilities; financial terms were not disclosed. - learn more
    • Burbank-based CareerArc was acquired by AI hiring platform Humanly, with financial terms undisclosed. The deal combines CareerArc’s recruitment marketing and social recruiting tools with Humanly’s AI-powered candidate engagement, screening and interviewing platform, creating a more connected system for employers managing high-volume hiring. - learn more
    • Ethiqly was acquired by Carnegie Learning from Owl Ventures and the company’s management, with financial terms undisclosed. Carnegie Learning plans to integrate Ethiqly’s AI-powered writing platform into its literacy offerings, helping students improve their writing while giving teachers greater visibility into the drafting, revision and learning process. - learn more

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      How to Navigate LA Tech Week 2026

      🔦 Spotlight

      Happy Friday, Los Angeles.

      Next week, hundreds of tech events will take over the city, bringing founders, investors, engineers and creators together from October 12 through 18.

      Calling LA Tech Week a conference does not quite capture the experience.

      Presented by Andreessen Horowitz, Tech Week is a decentralized collection of panels, workshops, demonstrations and gatherings hosted independently by startups, venture firms and technology companies. There is no convention center or central stage. The programming stretches from Santa Monica and Venice to Culver City, Downtown, El Segundo and beyond.

      In other words, the city is the venue.

      AI remains the dominant theme for 2026, appearing across enterprise software, healthcare, finance, media and the creator economy. The schedule also reflects industries where Los Angeles has built a particular advantage, including aerospace, defense, robotics, advanced manufacturing, entertainment and consumer technology.

      That range is what makes LA Tech Week distinct. It brings together the software companies shaping what comes next with the industries that already define Southern California.

      The challenge is deciding where to show up.

      Our advice: apply early and organize your schedule by neighborhood. Crossing from Santa Monica to Downtown may look manageable on a calendar created by someone who has never driven in Los Angeles.

      To help you spend more time meeting people and less time crossing the city, we have organized each day’s events by location:

      You can also browse the complete official LA Tech Week calendar.

      Plan carefully, but do not fill every minute. The best conversation of the week may be the one that was never on your calendar.

      More from this week’s LA startup and venture scene below.

      🤝 Venture Deals

        LA Companies

        • El Segundo-based Gallatin AI raised a $50M Series A from new and existing investors including 8VC and Silent Ventures, bringing its total funding to $70M. The defense technology startup will expand its engineering team and advance Navigator, an AI platform that helps U.S. military units coordinate vehicle readiness, supplies, medical logistics and other mission-support operations. - learn more
        • Pasadena-based quantum computing startup Oratomic raised a $475M Series B at a $5.4B valuation, just three months after its Series A. ARCH Venture Partners, Spark Capital, Khosla Ventures, Index Ventures, General Catalyst and Bezos Expeditions co-led the round, bringing Oratomic’s total funding to $775M as it works toward a commercially viable, fault-tolerant quantum computer by 2030. - learn more
        • Torrance-based Fortastra raised a $30M Series A led by First In, with participation from Upfront Ventures, Space Capital, Rsquared, Side Door Ventures, ATX Ventures and existing investors. The company will use the capital to develop its next-generation maneuverable spacecraft, expand its engineering and operations teams and scale production of systems designed to protect critical assets in orbit. - learn more
        • Parallel Systems raised a $100M Series C led by AVP, with participation from Hillspire, Agility Global, Cobalt Capital, Anthos Capital, Congruent Ventures, Riot Ventures and Collaborative Fund. Founded by former SpaceX engineers, the company will use the funding to scale production and commercial deployment of its autonomous, battery-electric Panther rail vehicles, which are designed to make short-haul freight more competitive with trucking. - learn more
        • Gaming studio Gardens Interactive secured more than $35M in a Series B led by Lightspeed, with participation from Sequoia Capital, Index Ventures, Accel, Innovation Endeavors, Zenith Capital and other investors. The company will use the funding to launch and operate its debut social role-playing “strandbox” game, an evolving multiplayer world shaped by players’ actions and interactions. - learn more
        • Outer Spaces raised an $8M pre-seed round led by Upfront Ventures, with participation from Unlock Venture Partners, Mucker Capital and Genius Ventures. The startup is developing outdoor furnishings with integrated solar panels and batteries, turning backyards into sources of clean energy and backup power. - learn more
        • Furientis raised a $25M seed round led by Benchmark at a reported $125M valuation, following a $5M pre-seed announced in May. The defense startup will use the capital to scale production of lower-cost missile interceptors designed to be assembled quickly with readily available components, with a long-term goal of producing 1,000 systems annually at each factory. - learn more
        • Hiyo raised a $20.8M Series B led by Constellation Brands, with returning investor Live Nation also participating. The nonalcoholic beverage company will use the funding to expand its adaptogen- and nootropic-infused social tonics across more than 13,000 retail locations while growing its presence at hospitality venues and live events. - learn more
        LA Venture Funds
        • Navitas Capital participated in Vesta’s $30M Series B, which was led by Conversion Capital and included backing from several major mortgage lenders and financial institutions. The company will use the funding to scale its AI agents across mortgage origination, automating tasks such as application reviews, underwriting decisions and closing-document checks. - learn more
        • MTech Capital led Nettle’s oversubscribed $4.8M seed round, with participation from Project A Ventures, Sure Valley Ventures, Portfolio Ventures and Ventures Together. The insurtech startup will use the funding to expand across the U.S. and Europe while growing its AI platform, which helps commercial insurers identify property risks, accelerate inspections and generate reports. - learn more
        • Bonfire Ventures doubled down on Santé by participating in the company’s $15M Series A, which was led by FINTOP and included other returning investors. The New York startup will use the funding to expand its AI-powered operating system for independent wine and liquor stores, which combines point-of-sale, e-commerce, payments, inventory and marketing tools in one platform. - learn more

        LA Exits

        • Winnow Solutions was acquired by Marina del Rey-based Spring Labs, with financial terms undisclosed. Winnow’s attorney-built library of more than 100,000 state and federal regulatory requirements will become a core part of SpringGRC, helping financial institutions connect changing laws directly to their compliance policies, controls and workflows. - learn more

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          LA Tech Week 2026: Sunday’s Event Lineup

          🔦 Spotlight

          LA Tech Week 2026 closes Sunday with one final day of events across Los Angeles. We have organized the remaining lineup by neighborhood so you can finish the week with a few last conversations before everyone returns to their regularly scheduled inboxes.

          ARTS DISTRICT

          12:00 PM

          CARSON

          12:00 PM

          CULVER CITY

          9:00 AM

          • Women in Cleantech & Sustainability Hike and Network: See Details Here
            Women in Cleantech & Sustainability

          6:00 PM

          • Founders pitch competition: See Details Here
            Biomorphix solutions, Nightingale regenerative

          HOLLYWOOD

          10:00 AM

          4:00 PM

          • AI International: Film, Music Video & Micro-Drama: See Details Here
            AI International Film Festivals

          MID CITY

          1:00 PM

          OTHER

          12:00 PM

          • ORGANIC LIFE LABS™ PRESENTS THE ALIGNMENT LAB: The Science of human performance: See Details Here
            The Blue Room Collective

          SANTA MONICA

          8:00 AM

          1:00 PM

          6:00 PM

          SOUTH LA

          2:00 PM

          • Future Builders : Family STEM Day: See Details Here
            Black L.A. Tech Week (Community Collective)

          VENICE

          10:00 AM

          12:00 PM

          • How to Raise Funds to Fund Any Business Using Digital Products.: See Details Here
            DN Events

          VIRTUAL

          5:00 PM

          WEST HOLLYWOOD

          3:00 PM

          Each session provides unique opportunities to gain insights, network, and explore various fields of tech innovation. For updates or more event information, visit the official Tech Week calendar.

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