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
TikTok competitor Triller is in advanced talks with at least three blank-check companies to go public at a valuation between $3 billion and $6 billion, according to sources familiar with the matter.
That range is broad because the L.A.-based viral video app is seeking to acquire one of its strategic partners, a U.S. subsidiary of a foreign-listed company, before merging with a special purpose acquisition company or SPAC, those sources said. The target company is a tech business that Triller already works with to help monetize its app. If that acquisition goes through, one source said, Triller's revenues would increase from around $100 million to $300 million, and its valuation could be on the higher end of the reported range.
<p>Triller livestreamed this past weekend's eight-round showdown between Mike Tyson and Roy Jones Jr. at the Staples Center in collaboration with Fite.TV. The event exceeded revenue expectations and convinced company insiders that Triller had enough momentum to make a successful run on Wall Street. </p><p>Since April, Triller has been working with bicoastal boutique investment banking firm Farvahar Partners to pursue a $250 million fundraise at a valuation of $1.25 billion. Triller has raised over half that amount, one source said.</p><p class="shortcode-media shortcode-media-rebelmouse-proxy-image">
<img type="lazy-image" data-runner-src="https://assets.rebelmouse.io/eyJhbGciOiJIUzI1NiIsInR5cCI6IkpXVCJ9.eyJpbWFnZSI6Imh0dHBzOi8vbWVkaWEucmJsLm1zL2ltYWdlP3U9JTJGd3AtY29udGVudCUyRnVwbG9hZHMlMkYyMDIwJTJGMDglMkZ0eXNvbi1qb25lcy10cmlsbGVyLXBvc3Rlci1Db3B5LTgwMC5qcGcmaG89aHR0cHMlM0ElMkYlMkZjZG4td2JuLmItY2RuLm5ldCZzPTc4NiZoPTU0Njg3ZjRhZjk5Zjk4ZWI5YTY5NjdmNzUzYTFkMWZiMjQ4MTExNTYwMzA1MGM4NWUwYWFmYTY5OWRjM2NhMjYmc2l6ZT05ODB4JmM9MTYxODUyMzYxMCIsImV4cGlyZXNfYXQiOjE2Mjk1NjI0NDR9.MPLwNFTbCnN8PHeOfMigNX7F1Ukk-d-upBXWbHyKnp4/img.jpg" id="d7eae" class="rm-shortcode" data-rm-shortcode-id="75fe55fd7e824a4d13b627c8ad8d5960" />
</p><p>But over the summer, several SPACs expressed interest in Triller, as rival TikTok faced a potential shutdown by the Trump administration. When TikTok's parent company ByteDance revealed it sought a $60 billion valuation for the acquisition of its subsidiary – and reputable companies like Oracle, Walmart and Microsoft still wanted to buy it – the interest intensified, one source said. (The deadline for a TikTok sale has been extended to Dec. 4.)<br/></p><p>Farvahar Partners brought in M. Klein & Company, another boutique investment banking firm, to be a co-advisor because of its expertise with SPACs. M. Klein's majority partner, Michael Klein, also directs Churchill Corp, a SPAC, but Churchill is not one of the SPACs that Triller is currently considering, the people said. </p><p>SPACs <a data-linked-post="2648465322" href="https://dot.la/supernova-spac-2648465322.html" target="_blank">are empty-shell companies</a> that raise money to go public with the intention of eventually merging with a private company. To those private companies, going public via a SPAC typically offers a simpler and cheaper route to the public markets than an IPO. SPACs have grown particularly popular this year following several high-profile and successful SPAC mergers, such as DraftKings and Virgin Galactic. </p><p>Founded in 2015 and acquired by Proxima Media in 2019, Triller told dot.LA it currently has around 18 million daily active users and 65 million monthly active users. The company recently faced <a href="https://www.businessinsider.com/some-former-triller-employees-wary-of-monthly-active-user-count-2020-9" rel="noopener noreferrer" target="_blank">accusations from former employees</a> that it has inflated its user numbers, but the company denies those allegations. Either way, its numbers are a sliver of TikTok's estimated 800 million monthly active users.</p><p>Prior to Triller's current funding round, the company had raised rounds of $50 million and $28 million. In total, the company says it has raised around $225 million. </p><p>---</p><p><em>Sam Blake primarily covers media and entertainment for dot.LA. Find him on Twitter @hisamblake and email him at samblake@dot.LA</em><br/></p>
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How Influencers Became Key to Big Brands During the Pandemic — and Why They'll Continue to Grow
Nov 30 2020
- 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?
<h2>The Rise of Influencer Marketing
</h2><p>
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 <a href="https://insights.digitalmediasolutions.com/articles/history-celebrity-endorsements" rel="noopener noreferrer" target="_blank">has existed for a long time</a>, but the internet and social media gave rise to a new capability for companies of targeting specific audiences with more precision than a television or radio commercial. As a result, <a href="https://hbr.org/2020/03/reinventing-the-direct-to-consumer-business-model" rel="noopener noreferrer" target="_blank">niche, direct-to-consumer businesses offering specific products</a>, and online influencers to peddle those products, have bloomed.
</p><p>
Before the pandemic set in, Influencer Marketing Hub, a research firm, <a href="https://influencermarketinghub.com/influencer-marketing-benchmark-report-2020/" rel="noopener noreferrer" target="_blank">reported</a> 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.
</p><p class="shortcode-media shortcode-media-rebelmouse-image">
<img type="lazy-image" data-runner-src="https://dot.la/media-library/eyJhbGciOiJIUzI1NiIsInR5cCI6IkpXVCJ9.eyJpbWFnZSI6Imh0dHBzOi8vYXNzZXRzLnJibC5tcy8yNDc3ODkzOS9vcmlnaW4ucG5nIiwiZXhwaXJlc19hdCI6MTYyOTgyMjA3OH0.xpryQloQoGrDFAS_tPWcgpveDJauJtbJSOMKa2rO4WE/image.png?width=980" id="ff70c" class="rm-shortcode" data-rm-shortcode-id="3dda47e9ab550c3021585f6d6426b260" data-rm-shortcode-name="rebelmouse-image">
<small class="image-media media-caption" placeholder="Add Photo Caption...">Influencer MarketingHub's 2020 report, based on a survey of 4,000 professionals, forecasted a massive rise in the growth of influencer marketing. </small><small class="image-media media-photo-credit" placeholder="Add Photo Credit...">Courtesy <a href="https://influencermarketinghub.com/influencer-marketing-benchmark-report-2020/" target="_blank">Influencer MarketingHub</a></small></p><p>
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 <a href="https://www.magiclinks.com" target="_blank">MagicLinks</a>, 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%.<br>
</p><p>
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.
</p><p>
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.</p><h2></h2>
Influence in the Wake of Ecommerce
<span style="display:block;position:relative;padding-top:56.25%;" class="rm-shortcode" data-rm-shortcode-id="07f23e0bad020e13c4a64c5c6a12cd87"><iframe lazy-loadable="true" src="https://www.youtube.com/embed/VY-vJMb-Dr0?rel=0" width="100%" height="auto" frameborder="0" scrolling="no" style="position:absolute;top:0;left:0;width:100%;height:100%;"></iframe></span><p>The pandemic has also caused ecommerce to <a href="https://www.smartinsights.com/digital-marketing-strategy/online-retail-sales-growth/" target="_blank">skyrocket</a> and led people to <a href="https://www.emarketer.com/content/how-coronavirus-changing-us-social-media-usage" target="_blank">spend more time on social media</a>, both of which have increased the supply of potential customers for brands to target with influencers.</p><p>"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.</p><p>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 <a href="https://dot.la/social-native-2647873306.html" target="_self">predict how well an influencer campaign will do</a>.</p><p>"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.</p><p>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.</p><p>"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."</p><p>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 <a href="https://www.firsttubemedia.com/" target="_blank">First Tube Media</a>. Prior to the campaign, "Tito's had never spent a dollar in influencer marketing," First Tube CEO Andrew Beranbom told dot.LA. <a href="https://www.superdry.com/us/" target="_blank" rel="noopener noreferrer">Superdry</a>, 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.</p>How Influencers Change What We Buy, and What They Make
<img lazy-loadable="true" src="https://assets.rebelmouse.io/eyJhbGciOiJIUzI1NiIsInR5cCI6IkpXVCJ9.eyJpbWFnZSI6Imh0dHBzOi8vbWVkaWEucmJsLm1zL2ltYWdlP3U9JTJGaXMlMkZpbWFnZSUyRkNyb2NzJTJGMDIxMTIwLUtGQy1BbmdsZWQzJTNGJTI0bWt0LWpwZy05MCUyNCZobz1odHRwcyUzQSUyRiUyRmltYWdlcy5jcm9jcy5jb20mcz0xMDE4Jmg9YzYzNDVmZTk1OTk3ZjI0NDNkNDAzMzg1YTVhY2VlNGVjOWU1ZTUwMWNlOThhNzg4MjcxMTIxYjJmODBhOWY0YiZzaXplPTk4MHgmYz0yOTMxOTEwMjQ3IiwiZXhwaXJlc19hdCI6MTYxODk3OTA5OH0.gx73p3jbM6G95Y4iFZyHzIHpJiuUWfJAr1-reUHd1V8/img.jpg" id="67c4c" class="rm-shortcode" data-rm-shortcode-id="e5d31832c6a8ebce26e0222146f673e6" alt="KFC crocs" />KFC Crocs, an unholy creation of influencer marketing.
<p>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 href="https://www.crocs.com/KFC.html" target="_blank">a KFC line of Crocs</a>, e.l.f. Cosmetics' Chipotle <a href="https://nrf.com/blog/chipotle-inspires-new-makeup-kit-elf-cosmetics" target="_blank">burrito-inspired handbag and makeup kit</a>, and Forever 21's <a href="https://www.businessinsider.com/forever-21-cheetos-clothing-collaboration-2019-6" target="_blank">Cheetos apparel line</a>.</p><p>"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."</p><p>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.</p><p>"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.</p><p>Yet that informality is part of the appeal of influencer marketing.</p><p>"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 <a href="https://www.advertisemint.com/" target="_blank">AdvertiseMint</a>, 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."</p><p>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 <a href="https://dot.la/celebrity-economy-2647441974.html" target="_self">threatened to upend the living of its influencers</a>, TikTok's hold on the traditionally elusive younger demographic – along with other user-generated video platforms like Instagram, YouTube, Twitch <a href="https://dot.la/snap-spotlight-2649022645.html" target="_blank">and Snap</a> – has become increasingly hard for companies to ignore.</p><p>"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 <a href="https://www.qyoumedia.com/" target="_blank" rel="noopener noreferrer">The QYOU</a>. "Moving forward I think we'll see brands start to build deeper relationships with influencers."</p><p>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.</p><p>"A lot still depends on relationships, conversations and trial and error," said Darren Litt, chairman and co-founder of L.A.-based talent marketplace <a href="http://www.marketerhire.com" target="_blank" rel="noopener noreferrer">MarketerHire</a>. "A successful influencer campaign requires a detailed understanding of an influencer's brand, and that's hard to do with tech and AI alone."</p><p>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.</p><p>"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.</p><p>But much like a song that goes viral on TikTok can <a href="https://musically.com/wp-content/uploads/2020/10/Report-429-4692555.pdf" target="_blank" rel="noopener noreferrer">drive a listening bump on streaming platforms</a> like Spotify, so, too, it appears, can an influencer campaign drive offline purchases.</p><p>After all, Dunkin' Donuts <a href="https://www.tmz.com/2020/09/23/charli-damelio-dunkin-donuts-drink-cold-brew-sales-boost/" target="_blank" rel="noopener noreferrer">saw sales surge</a> following its D'Amelio partnership, even though the girl with over 100 million TikTok followers <a href="https://www.elitedaily.com/p/the-reason-charli-damelio-hasnt-ordered-her-dunkin-drink-makes-sense-38410234" target="_blank" rel="noopener noreferrer">has reportedly never ordered "The Charli" herself</a>.</p><p>--- </p><p><em>Sam Blake primarily covers media and entertainment for dot.LA. Find him on Twitter @hisamblake and email him at samblake@dot.LA.</em><br></p>From Your Site Articles
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Snapchat is paying out $1 million a day to top creators as competition for influencers intensifies.
It is the latest move in an arms race among a growing list of social media companies that depend on short-form, user-generated videos.
The new feature, called Spotlight, rolled out on Monday. Snap, which once distinguished itself as a friend-to-friend messaging app, is now letting users submit video clips of up to 60 seconds that can be viewed by anyone on the platform. It comes weeks after the platform opened up public profiles to everyone.
<p>Snap says it will determine who gets paid, and how much, based on a proprietary formula that may include metrics such as views and engagement. Snap's content algorithms will influence how many people see Spotlight submissions. Those formulas in part consider how users' content has performed in the past. </p>
<p>As <a href="https://dot.la/tiktok-wechat-rivals-cleaned-up-during-a-weekend-of-confusion-2647741538.html" target="_self">TikTok's future in the U.S. remains in limbo,</a> competitors have sought to lure creators and their followers with shiny incentives. Shortly after TikTok <a href="https://newsroom.tiktok.com/en-us/introducing-the-200-million-tiktok-creator-fund" rel="noopener noreferrer" target="_blank">launched its $200 million creator fund</a> (which the company has said will grow to $1 billion within three years), Instagram <a href="https://techcrunch.com/2020/08/05/instagram-reels-launches-globally-in-over-50-countries-including-u-s/" rel="noopener noreferrer" target="_blank">rolled out Reels</a> globally, and reportedly sought to <a href="https://www.wsj.com/articles/facebook-seeks-to-reel-in-tiktok-creators-raising-stakes-in-social-media-rivalry-11595928600" rel="noopener noreferrer" target="_blank">woo creators from TikTok with gobs of money</a>. Not to be outdone, Triller, <a href="https://dot.la/triller-2646853219.html" target="_self">another short-form social video competitor</a>, has reportedly attempted to <a href="https://www.nytimes.com/2020/10/07/style/triller-app-tiktok.html" rel="noopener noreferrer" target="_blank">attract top talent with luxurious meals, cars and mansions</a>. </p>
<p>Now it is Snap that is dangling money to try to tip the user-generated video scales in its direction. </p>
<p>Not that the company has been struggling. Since a <a href="https://www.tubefilter.com/2020/09/09/snapchat-vidcon-2020-user-profiles-analytics/" rel="noopener noreferrer" target="_blank">banner Q3 earnings report</a>, Snap's stock has soared nearly 60%. </p>
<p>Monday's announcement further illuminates a new contour in Snap's strategy, however: staking out a claim in the music-accompanied short-form user-generated video space. Spotlight will leverage Snap's <a href="https://www.bloomberg.com/news/articles/2020-08-03/snap-lands-deals-with-top-music-companies-to-add-songs-to-videos?sref=4Kf8RwDw" rel="noopener noreferrer" target="_blank">recently inked music licensing deals</a>, which have already been used to <a href="https://www.theverge.com/2020/10/15/21516348/snapchat-snap-sounds-music-ios-update" rel="noopener noreferrer" target="_blank">allow users to add songs to messages they send on Snapchat</a>. The new feature also presents a strong use case for <a href="https://dot.la/snap-acquires-voisey-2648998840.html" target="_self">Snap's acquisition last week of Voisey</a>, which allows users to easily create and upload songs of their own.</p>
<p>Spotlight also appears poised to bring new revenue streams to Snap. The nine-year-old company has never turned a profit. According to the new feature's terms of service, it "may contain advertisements," and the payouts made to top videos "may be funded either by Snap or from a portion of the proceeds we receive from advertisements distributed in Spotlight."</p>
<p>The feature is currently available in Australia, Canada, Denmark, France, Germany, Ireland, New Zealand, Norway, Sweden, the United Kingdom and the U.S., "with more countries to come soon," according to a representative. </p>
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