SOCIAL
Social Commerce May Not be the Trend That Many Had Hoped – Which is Bad News for TikTok

Will social commerce ever catch on in western nations, and become the big money maker that it has in some Asian markets?
It’s a key question, particularly for TikTok, which isn’t able to directly monetize content through in-stream ads like other video apps. On the Chinese version of TikTok (Douyin), in-stream commerce has become its biggest income stream, with live commerce, in particular, generating big dollars for the app and its creative talent.
But thus far, users in the US and Europe haven’t shown much interest in buying on social apps, so much so that Meta has now opted to shut down its live commerce initiative on Facebook, as well as its affiliate product tagging option on Instagram.
Originally launched in June last year, Instagram’s native affiliate program currently enables eligible creators to discover new products that are available for purchase in the app, then share those products with their followers, via dedicated shopping tags. Creators then earn a commission for any subsequent purchases that they’re able to drive from their content.
It seems like a good supplementary income stream for IG creators – but again, like all in-stream shopping options, it hasn’t really caught on as Meta would have hoped.
As reported by Digiday:
“The program [has] struggled to gain adoption among creators, according to the creator industry executives. Specifically, the program involved too many steps for creators to get set up, and once a creator participated in the program, they were no longer able to tag products that were not included in the program in posts on Instagram.”
So it’s not as directly attributable as in-stream shopping, in general, not catching on, as there are other complications noted here. But you can bet that if Instagram was making money from it, it wouldn’t be shutting it down, which goes the same for live shopping on Facebook (live shopping on Instagram, however, will continue to be developed).
Which is bad for Meta, and its own commerce ambitions, which it had hoped would enable it to build on the pandemic-led eCommerce boom and establish both Facebook and Instagram as more all-encompassing discovery, recommendation and shopping platforms, in addition to their social and entertainment elements.
Indeed, Instagram chief Adam Mosseri recently addressed the lack of enthusiasm for in-stream shopping tools, explaining that:
“Many companies assumed that the swells and business they saw when the pandemic hit were an acceleration of existing trends that would have staying power. In practice it seems like almost all these trends reverted to pre-pandemic trend-lines.”
But again, this is even worse for TikTok, which is largely reliant on in-stream commerce becoming a thing in order to truly maximize its revenue potential, while also keeping its top talent aligned to the app.
TikTok too has had to scale back its eCommerce plans, with its initial push into live commerce seeing poor response in Europe, forcing it to delay its expanded rollout plans. That’s a big blow – because at the same time, more and more TikTok creators are sounding the alarm about the low payments that they’re increasingly seeing from the platform’s Creator Fund, its key, direct monetization pathway, which is subsequently seeing more and more of them spend more time creating for YouTube and IG instead, where they can make real money, without having to organize their own third-party affiliate deals.
That, eventually, could become a bigger threat to TikTok’s current dominance, while others have also noted that the app isn’t really designed to help creators build an audience, as such, as the broader content focus is more about uncovering the latest, trending posts, from anybody, as opposed to driving users to follow specific creators and accounts.
In-stream commerce is supposed to be the big thing that enables its top stars to make money directly from the app. But if users aren’t interested, and creators aren’t taking it up, as many Chinese stars have, that could be the start of a downward trend for the app, as more of them then spend their time building their audiences elsewhere.
It’s not a problem as yet. TikTok is still growing, and its addictive ‘For You’ feed continues to lure more users back to the app more often.
But what if its top stars begin posting exclusively to YouTube, and YouTube Shorts instead? What if YouTube offers them exclusive contracts, pulling their content out of the app – what if TikTok is no longer to hive of the latest, greatest trending content anymore, because people can make more money elsewhere?
It seems unlikely that TikTok’s going to lose enough momentum for that to be a real issue, with projections that it’ll soon hit 1.5 billion active users. But it does feel like an inflection point is coming, where TikTok will either need to provide another revenue pathway for its stars, or it’s usage will start to plateau, then decline slowly over time.
Maybe we’re too addicted to short-form video now for that to happen. But if the next viral, short-form trend originates from Instagram or YouTube, I’d be taking note.
It’s not going to be a sudden decline, but like Vine before it, if TikTok fails to take care of its top talent, they will start looking elsewhere.
SOCIAL
Musk regrets controversial post but won’t bow to advertiser ‘blackmail’

Elon Musk’s comments at the New York Times’ Dealbook conference drew a shocked silence – Copyright GETTY IMAGES NORTH AMERICA/AFP Slaven Vlasic
Elon Musk apologized Wednesday for endorsing a social media post widely seen as anti-Semitic, but accused advertisers who are turning away from his social media platform X of “blackmail” and said anyone who does so can “go fuck yourself.”
The remark before corporate executives at the New York Times’ Dealbook conference drew a shocked silence.
Earlier, Musk had apologized for what he called “literally the worst and dumbest post that I’ve ever done.”
In a comment on X, formerly Twitter, Musk on November 15 called a post “the actual truth” that said Jewish communities advocated a “dialectical hatred against whites,” which was criticized as echoing longtime conspiracy theory among White supremacists.
The statement prompted a flood of departures from X of major advertisers, including Apple, Disney, Comcast and IBM who criticized Musk for anti-semitism.
“I’m sorry for that tweet or post,” Musk said Wednesday. “It was foolish of me.”
He told interviewer Andrew Ross Sorkin that his post had been misinterpreted and that he had sought to clarify the remark in subsequent posts to the thread.
But Musk also said he wouldn’t be beholden to pressure from advertisers.
“If somebody’s gonna try to blackmail me with advertising, blackmail me with money?” Musk said. “Go fuck yourself.”
But the billionaire acknowledged that there were business implications to the advertiser actions.
“If the company fails… it will fail because of an advertiser boycott” Musk said. “And that will be what will bankrupt the company.”
Musk, who met with Israeli Prime Minister Benjamin Netanyahu during a visit to Israel earlier this week, insisted in the interview that he holds no discrimination against Jews, calling himself “philo-Semitic,” or an admirer of Judaism.
During the interview, Musk wore a necklace given to him by a parent of an Israeli hostage taken in the Hamas attack on October 7. The necklace reads, “Bring Them Home.”
Musk told Sorkin that the Israel trip had been planned earlier and was not an “apology tour” related to the controversial tweet.
SOCIAL
TikTok Encourages Creators To Make Longer Videos, With Focus On Ad Revenue 11/30/2023

A new report by The Information shows the company’s recent efforts to convince
creators to put out longer videos in order to provide more room for ad placements.
According to the …
SOCIAL
X Adds Option To Embed Videos in Isolation From Posts

Next time you go to embed an X post, you may notice a new step:
Now, X will enable you to choose whether you want to embed the video element in isolation, or the whole post, as normal.
And if you do choose to embed just the video (or GIF), it’ll look like this:
Which could be a helpful way to present X-originated video on third-party websites, and add context to, say, your blog post, without the clutter of the full X framing.
But it could also reduce brand exposure for X, which is likely why Twitter didn’t enable this before, though it did once provide an “embedded video widget” which essentially served the same purpose.

Twitter gradually seemed to phase that out as the platform evolved, and there’s no specific reason that I can find as to why it removed it as an option. But either way, now, it’s back, so you have more options for using X-originated content, and putting more focus on video elements specifically.
Though I don’t know why they didn’t also take the opportunity to remove the ‘Tweet’ reference. Since the re-brand to X, the platform seems to have gone to little effort to weed out all the tweet and bird terminology, but then again, with 80% fewer staff, that’s probably understandable as well.
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