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Social platforms become ‘marketing engines’ as creators look for direct deals to earn money

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Social platforms become 'marketing engines' as creators look for direct deals to earn money

The creator economy has spent the last few years ballooning, vacuuming up more and more ad dollars each year. But the creators, who were once beholden to mysterious social media platform algorithms and anemic creator fund earnings, are increasingly moving to cut out the platforms themselves as middlemen.

Because of the platforms’ unpredictable algorithms and mysterious revenue sharing models, social media is becoming more of a marketing vehicle for creators rather than a means to drive revenue itself, creators say. Instead of waiting on the creator fund promised land, creators are rethinking how they view the platforms, with some using social media as a means to get the attention of brands rather than to generate revenue.

It’s partly a matter of diversifying revenue streams beyond the platforms themselves to include things like Patreon subscriptions or shoppable content via Like To Know It links in bios. It’s also, per creators, partly out of frustration with low creator fund payouts. (See how much social media behemoths are willing to shell out to creators here.) Increasingly, creators are opting to strike deals with brands and advertisers directly over email or social media direct messages as opposed to relying on social media platforms themselves as revenue generators. 

Jess Zafarris is an author, content director and part-time content creator with more than 93,000 followers on TikTok. When she started her TikTok back in 2020 and joined the creator fund, daily videos could go for $2.50 if they got above 10,000 views. Since then, the short-form video app seems less willing to shell out, she said, noting the same videos that to get $2.50 now make three to five cents. 

“I would say I use, and I advise authors to use, TikTok as a marketing engine rather than as a sole income generator,” Zafarris said.

When the creator economy started to mushroom back in 2020, thanks to pandemic lockdown increasing screen time, platforms rushed to set up creator funds, creator marketplaces and other monetization opportunities to keep creators engaged. In 2021, Meta promised to invest $1 billion in creator-focused programs, offering monetization opportunities via bonus programs and more. Last March, Meta was reportedly pausing its program that paid out bonuses to creators for making Reels. Pinterest launched a similar initiative in 2021 with its Creator Rewards program. The platform ended the program in November of 2022. TikTok’s creator fund launched its $2 billion creator fund in 2020, reportedly shutting it down last November.

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That’s not to say that platforms have shuttered all efforts toward creator monetization. TikTok has since launched its Creativity Program to help creators generate revenue. Meanwhile, Pinterest still hosts its Creator Inclusion Fund, which caters to underrepresented creators, and creators can earn money on Instagram via branded content, in-app shopping, subscriptions and live stream badges.

Meta, TikTok and Pinterest did not respond to a request for comment in time for publication.

Over the years, creators like Zafarris say payout has waned and algorithm-based success metrics remain murky, leading some to opt out of even applying from platform-supported grants and funds.

“I’ve heard rumors that joining the creator fund decreases your views,” said Annie Silkaitis, a part-time creator with more than 38,000 TikTok followers, who works in tech PR. “For me, it just wasn’t worth the risk.” 

Instead, Silkaitis culls brand deals via email, which is listed in the bio of her TikTok account. Just below Silkaitis’ email is her Linktree, a link in bio tool that takes users to a landing page where Silkaitis houses her Amazon storefront, gift guides and other affiliate links.

It’s the new digital storefront, but also a direct point of contact between brands and advertisers, and the creators they’re looking to work with. Per Linktree, there’s been an uptick of creators using the tool. The company told Digiday that 2022 ended with more than 31 million users, shooting up to 45 million by the end of 2023. At least 10% of “The Bachelor” star and influencer Hannah Ann Sluss’ bookings come from the LTK shopping app. Across TikTok and Instagram, the reality TV star has more than 2 million followers.  

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“I’ve seen a lot of brands like Abercrombie, Walmart, and Target will book me through the LTK app because they see my conversion rate,” she said in an email, adding that she now works with Walmart on a monthly basis. “LTK is a smaller source of monthly income for me but I truly enjoy it.” Sluss did not disclose how much of her income stems from LTK. 

Similarly, Kierra Lanice, celebrity makeup artist and part time content creator with more than 10,000 followers across TikTok and Instagram, prefers striking brand deals directly as opposed creator funds. “You’re giving everyone $200 who’s a part of this [creator fund]. But if I talked to the brand directly, they’ll pay me $10,000,” she said. 

In light of the creator economy boom, it turns out that creator funds aren’t panning out to be as sustainable as once thought, according to The Influencer Marketing Factory co-founder and CEO Alessandro Bogliari. It can get influencers in the door to the creator economy and influencer marketing, but they want the tools to grow, whether that’s to launch their own brands or media companies. 

“If you are in a platform where you are not given the tools to grow organically, in terms of potentially making money, therefore, it’s like, if this is not the way I’m going to make the money… you have to find something else,” Bogliari said. 



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Snapchat Explores New Messaging Retention Feature: A Game-Changer or Risky Move?

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Snapchat Explores New Messaging Retention Feature: A Game-Changer or Risky Move?

In a recent announcement, Snapchat revealed a groundbreaking update that challenges its traditional design ethos. The platform is experimenting with an option that allows users to defy the 24-hour auto-delete rule, a feature synonymous with Snapchat’s ephemeral messaging model.

The proposed change aims to introduce a “Never delete” option in messaging retention settings, aligning Snapchat more closely with conventional messaging apps. While this move may blur Snapchat’s distinctive selling point, Snap appears convinced of its necessity.

According to Snap, the decision stems from user feedback and a commitment to innovation based on user needs. The company aims to provide greater flexibility and control over conversations, catering to the preferences of its community.

Currently undergoing trials in select markets, the new feature empowers users to adjust retention settings on a conversation-by-conversation basis. Flexibility remains paramount, with participants able to modify settings within chats and receive in-chat notifications to ensure transparency.

Snapchat underscores that the default auto-delete feature will persist, reinforcing its design philosophy centered on ephemerality. However, with the app gaining traction as a primary messaging platform, the option offers users a means to preserve longer chat histories.

The update marks a pivotal moment for Snapchat, renowned for its disappearing message premise, especially popular among younger demographics. Retaining this focus has been pivotal to Snapchat’s identity, but the shift suggests a broader strategy aimed at diversifying its user base.

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This strategy may appeal particularly to older demographics, potentially extending Snapchat’s relevance as users age. By emulating features of conventional messaging platforms, Snapchat seeks to enhance its appeal and broaden its reach.

Yet, the introduction of message retention poses questions about Snapchat’s uniqueness. While addressing user demands, the risk of diluting Snapchat’s distinctiveness looms large.

As Snapchat ventures into uncharted territory, the outcome of this experiment remains uncertain. Will message retention propel Snapchat to new heights, or will it compromise the platform’s uniqueness?

Only time will tell.

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Catering to specific audience boosts your business, says accountant turned coach

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Catering to specific audience boosts your business, says accountant turned coach

While it is tempting to try to appeal to a broad audience, the founder of alcohol-free coaching service Just the Tonic, Sandra Parker, believes the best thing you can do for your business is focus on your niche. Here’s how she did just that.

When running a business, reaching out to as many clients as possible can be tempting. But it also risks making your marketing “too generic,” warns Sandra Parker, the founder of Just The Tonic Coaching.

“From the very start of my business, I knew exactly who I could help and who I couldn’t,” Parker told My Biggest Lessons.

Parker struggled with alcohol dependence as a young professional. Today, her business targets high-achieving individuals who face challenges similar to those she had early in her career.

“I understand their frustrations, I understand their fears, and I understand their coping mechanisms and the stories they’re telling themselves,” Parker said. “Because of that, I’m able to market very effectively, to speak in a language that they understand, and am able to reach them.” 

“I believe that it’s really important that you know exactly who your customer or your client is, and you target them, and you resist the temptation to make your marketing too generic to try and reach everyone,” she explained.

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“If you speak specifically to your target clients, you will reach them, and I believe that’s the way that you’re going to be more successful.

Watch the video for more of Sandra Parker’s biggest lessons.

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Instagram Tests Live-Stream Games to Enhance Engagement

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Instagram Tests Live-Stream Games to Enhance Engagement

Instagram’s testing out some new options to help spice up your live-streams in the app, with some live broadcasters now able to select a game that they can play with viewers in-stream.

As you can see in these example screens, posted by Ahmed Ghanem, some creators now have the option to play either “This or That”, a question and answer prompt that you can share with your viewers, or “Trivia”, to generate more engagement within your IG live-streams.

That could be a simple way to spark more conversation and interaction, which could then lead into further engagement opportunities from your live audience.

Meta’s been exploring more ways to make live-streaming a bigger consideration for IG creators, with a view to live-streams potentially catching on with more users.

That includes the gradual expansion of its “Stars” live-stream donation program, giving more creators in more regions a means to accept donations from live-stream viewers, while back in December, Instagram also added some new options to make it easier to go live using third-party tools via desktop PCs.

Live streaming has been a major shift in China, where shopping live-streams, in particular, have led to massive opportunities for streaming platforms. They haven’t caught on in the same way in Western regions, but as TikTok and YouTube look to push live-stream adoption, there is still a chance that they will become a much bigger element in future.

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Which is why IG is also trying to stay in touch, and add more ways for its creators to engage via streams. Live-stream games is another element within this, which could make this a better community-building, and potentially sales-driving option.

We’ve asked Instagram for more information on this test, and we’ll update this post if/when we hear back.

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