Get in the KNOW
on LA Startups & TechX
TikTok has already dominated the social media landscape. Now, its users are helping it become a search engine.
While at Fortune’s Brainstorm Tech conference, Google Senior Vice President Prabhakar Raghavan said internal research indicates that users aged 18 to 24 are forgoing Google Search or Maps and instead sending their inquiries to social media sites. Despite growing concern about misinformation on such platforms, TechCrunch reported that TikTok and Instagram are now steering attention away from the core feature that launched the company into notoriety.
“We keep learning, over and over again, that new internet users don’t have the expectations and the mindset that we have become accustomed to,” Raghavan said at the conference.
Google, for its part, wants to highlight TikTok and Instagram videos in its search engine. Additionally, Raghavan said the search engine is incorporating more visuals while also leaning into voice searches.
As TikTok users film their meals and often add short, quippy reviews, Raghavan said Gen Z is turning to social media apps for their next lunch spot. Many TikTok users turn to influencers for food suggestions, with Los Angeles restaurants like The Red Chickz and Paris Tokyo gaining notoriety on the app.
Users often check the app for a wide range of recommendations. Raghavan’s statements confirm that TikTok users are turning to the video-sharing app for information. Videos under the hashtag for facts, hacks and recommendations, #tiktoktaughtme, have gained a cumulative 8 billion views.
Influencers on TikTok, however, often do not accurately disclose when a video includes sponsored content, as required by the Federal Trade Commission. And marketing companies have shifted to incorporate ideologies, like Urban Legend, an ad-tech startup that recruits social media celebrities from macro to nano to create content around everything from climate change to discouraging mask mandates. Urban Legend’s strategy draws on the idea that users who turn to influencers for recipe recommendations or fashion trends may also trust their opinion on political issues—even if many of the posts were not flagged as sponsored.
TikTok has also come under fire for misinformation—from the potentially harmful abortion tips to international elections to Russia’s invasion of Ukraine, the app has been criticized for not doing enough to combat it. Google has also been criticized for how its algorithm can highlight misinformation, such as suggesting “fake” abortion clinics.
With TikTok’s growing popularity, Google must contend with how to capture Gen Z’s attention as they try to retain that audience. And TikTok, for all its problems, has helped communities come together to inform people about topics ranging from autism diagnoses for women to astrological terms to LGBTQ+ information. Suggestions get local, too, with Los Angeles residents sharing free things to do downtown, vintage stores to shop at and museums to visit—succinctly providing recommendations with flashy videos.
- Can Streaming Compete With Gaming For Gen Z's Attention? - dot.LA ›
- Poparazzi Photo App Wants To Win Over Gen Z Without Selfies - dot ... ›
Hollywood is on notice: Gen Z would rather scroll through social media, play video games and stream music than watch TV or catch a film.
That's a remarkable shift from earlier generations – who still prefer to kick back and watch a screen – and poses serious challenges to traditional media, according to an annual survey of digital trends by Deloitte.
Asked to choose their favorite entertainment activity, the top response among Generation Z was video gaming (26%), followed by listening to music (14%), browsing the internet (12%), engaging on social platforms (11%) and then watching TV or movies at home (10%).
Administered in February as the pandemic was raging, the survey of more than 2,000 U.S. consumers reflects the rising popularity of gaming across ages but most starkly highlights the digital divide among generations.
"Media companies and advertisers may still be video-first, but younger generations may not be," the report said.
Of the Generation Z respondents, defined as those born between 1997 and 2007, 87% play video games daily or weekly, on smartphones, consoles or computers. And while a majority of the respondents, including millennials and Generation X, said video games have helped them stay connected to others during the pandemic, they see entertainment differently.
For all other generations (Millennials: born 1983-1996; Gen X: 1966-1982; Boomers: 1947-1965 and Matures: 1946 and prior), kicking back and watching the tube came in as the number one entertainment option.
Here are some additional takeaways:
- 82% of U.S. consumers have at least one video streaming subscription
- The average subscriber pays for four services
- Cost is the most important factor for deciding whether to subscribe to a new streaming service, followed by content selection
- 52% find it difficult to access content across so many services
- 53% are frustrated by the need to have multiple service subscriptions
- 40% would prefer to pay $12 a month for an ad-free video service, while 60% said they'd accept some ads for a lower fee.
- Streaming music subscribers pay for an average of two paid music services
- 45% would rather pay than have ads for their music streaming; 67% of millennials would prefer to pay
- 67% don't trust the news they see on social media
- 55% of Generation Z and 66% of millennials say social media ads influence their purchasing choices versus 49% of Generation X and 13% of boomers
- 40% would be willing to provide more personal information to receive more targeted ads
- 62% of Gen Z and 72% of millennials would rather see personalized ads than generic
- Pivot of the Year: Curative Inc. - dot.LA ›
- Ten Venture Capital Firms Commit to 'Diversity' Rider' - dot.LA ›
- Here's How Bird Laid Off 406 People in Two Minutes - dot.LA ›
One of the most famed soccer teams in the world, Barcelona Football Club, has described appealing to Gen Z as "the greatest challenge in professional sport."
That's why the Spanish soccer league and home of Barcelona FC, La Liga, has partnered with GreenPark Sports, a mobile gaming platform that has also inked deals with the NBA and League of Legends Championship Series (LCS), a popular esports league.
"We need to reinvent the role of the fan," said GreenPark chief executive Ken Martin, former co-founder and chief content officer of Blitz, a marketing agency. He founded GreenPark in 2018 along with Chad Hurley, co-founder of YouTube, and Nick Swinmurn, founder of Zappos.
GreenPark Sports chief executive Ken Martin
GreenPark has yet to launch, but earlier this month closed a $14 million Series A investment round, following a 2019 seed round of $8.5 million.
The company aims to engage fans of professional sports teams that are struggling to appeal to a generation that has grown up on social media and mobile screens. Just over half of Gen Z'ers consider themselves sports fans, compared to nearly 65% of adults, according to a recent survey from analytics firm Morning Consult.
"With this partnership, we will get close to a gaming community that nowadays is very important not only for the league, but also for our clubs," said Oscar Mayo, head of marketing and international development at La Liga.
The product is a free mobile app that asks players to align with their favorite professional teams. Players compete alongside their fellow fans against other teams' fans in a battle to demonstrate who is the most passionate fanbase.
For example, if the Lakers play the Pistons in two days, Lakers fans and Pistons fans will compete during that timespan in a series of mini-games like trivia, obstacle courses or rhythm-based challenges. For the actual game, they'll make predictions about what will happen, such as which player will grab the most rebounds, or score the game's first bucket.
"Gamers want to be the hero; they want to slay the dragon," Martin continued. "As a fan, you don't necessarily get that. So we said, what if we made the fans compete against each other?"
Built with the Unity gaming engine, players enter a theme park-like world containing different professional league hubs. Martin said GreenPark already has two additional leagues that it will unveil in the coming weeks.
"We believe the majority of fans' main activity is pretty much yelling at the internet," Martin said. He wants to change that to a more active role, á la competing in a video game.
As players compete, they can rack up swag to bedeck their avatar characters.
Will Fans Actually Sign Up for GreenPark?
The GreenPark app has so far only been tested among a cohort of several hundred esports fans. In January 2021 it will open up to a broader, early-access beta period, which currently has about 1,000 fans on the waiting list. That's a far cry from revolutionizing the fandom of an entire generation, but that's where the league partnerships will come in – or so GreenPark and its investors hope.
Courtney Reum, partner at L.A.-based VC firm M13, invested on a personal basis in GreenPark's recent $14 million Series A round. His firm doesn't usually invest in pre-revenue companies, but he said "we wanted to track it" for a potential M13 investment down the line.
Reum's primary concern is whether the league partnerships can help GreenPark lure users onto the platform.
"I view it as a marketplace of sorts. They're building the supply side with the league contracts and now comes the demand generation. So how quickly can we get evangelism is still the biggest question of mine," he said. "I think it's great to get the leagues on board, but now it's like, 'what league can you get to be your go-to workhorse?'"
Reum will be watching to see whether the leagues include GreenPark in their communications, both to fans and to internal stakeholders like players, managers and owners.
Mayo said "La Liga will include some of our stakeholders in this initiative. We believe with this partnership we will get close to a gaming community that nowadays is very important not only for the league, but also for our clubs."
What's In It for the Leagues?
Although GreenPark will be free to play, like most mobile games it plans to earn revenue from a combination of advertising and in-app purchases on cosmetic items to adorn users' avatars. Martin also envisions unique sponsorship opportunities, such as a brand embedding itself as a non-player character and interacting with GreenPark users.
This sort of non-traditional fan engagement embodies what Martin sees as GreenPark's larger value proposition to their league partners: "Leagues are getting a focus in on a younger demographic," he said. "Some leagues are real hungry for something that's going to rekindle or start to de-risk the future."
"I don't think anybody I've talked to about the vision doesn't see that there's potential," said Reum. He particularly likes the founding team, given their experience. He generally likes repeat entrepreneurs, but acknowledged there's always a risk of lower motivation in such cases. But Reum said he doesn't think that will be an issue with this group.
GreenPark currently has 63 employees, with the lion's share in L.A. The team is split about evenly across engineering, creative and business operations.
The company's $14 million Series A was led by Galaxy Interactive. Its $8.5M Seed Round in late 2019 was led by SignalFire with participation from Sapphire Sport and Founders Fund, among others.
Sam Blake primarily covers media and entertainment for dot.LA. Find him on Twitter @hisamblake and email him at samblake@dot.LA