Q4 is flying by, meaning the busiest but most exciting time in DTC eCommerce is almost here: BFCM and the holidays. Similarly, developments in influencer marketing and social commerce are not slowing down! Here’s the digest of the week:
Instagram confirms it lowers video quality for unpopular videos:
Smaller creators voice concerns that this practice of distributing computational resources puts their content at a disadvantage against bigger creators
TikTok is secretly introducing micro-influencers with product manufacturers:
The new report from Business Insider suggests TikTok believes it can turn high-performing micro-influencers into product/brand owners. Read more in Industry News of the Week
Kuerig Dr Pepper enter agreement to purchase Ghost Energy for over $1B dollars:
Ghost Energy largely grew its prominence in the energy drinks space due to its use of influencers, big and small
Walmart and Forbes team up for first-ever ‘Creator Upfronts’:
At the event, content creators will have the opportunity to pitch advertisers on upcoming programming, much like traditional TV Upfronts
Enjoy the rest of the newsletter!
Cheers,
Al & Alexa
Industry News By Al
TikTok is secretly introducing micro-influencers with manufacturers
A new report from Dan Whateley at Business Insider found that TikTok has secretly started connecting manufacturers with creators to make products to sell.
This comes amid a ton of attention around well-known influencers and celebrities launching their own brands. Examples in 2024 being:
- Mr. Beast & Lunchly
- Bella Hadid and Orebella
- Beyoncé and CÉCRED
At first glance, I was surprised by this news… but here’s why it actually makes total sense.
Most sellers on TikTok Shop are third-party DTC brands. These sellers are inherently incentivized to sell directly to consumers via their own eCommerce websites. In other words, the brand would rather a consumer checkout on their eCommerce site than TikTok Shop. Why?
- To Avoid the 8% processing fee imposed on TikTok Shop orders
- Gives the brand ownership over their customer and journey, meaning first-party data for re-marketing efforts, etc.
- Higher cLTVs in the long run. Cart sizes are bigger on native eComm than social commerce platforms.
This introduces tension between brands, creators, and TikTok:
- Brands would rather have their creators and influencers promote links back to their eCommerce sites
- TikTok would rather have creators drive sales through showcases and native Shops
So, if TikTok sees an opportunity to cut out the brand for a larger portion of its Shop revenue, why wouldn’t they do it? It has the infrastructure to support this given that they already operate a first-party marketplace that sources products from manufacturers. Plus, its relationship with creators is already very strong.
At the end of the day, TikTok is incentivized to become THE eCommerce platform for any sales. Alternative places for commerce like those supported by Shopify and Amazon are inherently competitive with the TikTok Shop platform.
I’m keen to see how this plays out… there’s many questions that will be answered like can micro-influencers launch and sell a product?
Read the full article here.
Brand of the Week By Alexa
We’re excited to welcome Kitsch and Rylee + Cru to the LoudCrowd family! Both brands have just launched their creator-affiliate programs with us—check out the details below.
Kitsch, a beauty and lifestyle brand known for its trendy, affordable hair accessories, beauty tools, and self-care products, has rolled out a new creator program. Creators can now set up personalized storefronts on Kitsch’s website, earning a 20% commission while offering their followers a 15% site-wide discount. 👉
Explore their program: Kitsch Creator Program
Rylee + Cru, a brand offering timeless, classic looks for both mom and child, has launched a creator-affiliate program with a 12% commission for creators and a 15% discount for their followers. Beyond commissions, creators can also earn points for tagging Rylee + Cru on social media, plus enjoy other exclusive perks.
Explore their program: Rylee + Cru Ambassador Program
Content of the Week By Alexa
Influencer marketers should not settle for campaigns that don’t show measurable ROI
LoudCrowd CEO, Gary Garafalo, recently shared his insights on LinkedIn, explaining why the EMV vs. performance debate doesn’t need to continue into 2024. Learn how to consistently achieve a 1-1.5X return on performance metrics for every campaign you run.
Read his full post here: Gary Garofalo on LinkedIn
Tool of the Week By Al
Shopify Magic
I recently read a snippet about how “quiet luxury” brand Old Money leverages Shopify’s AI suite to maintain a consistent aesthetic across all of its product images. They use the tool to remove backgrounds and make them all the same color, which builds trust with customers and improves conversions.
So I did some research and found a bunch of other real-world use cases of Shopify Magic from brands:
- Polysleep is personalizing marketing communications based on location and medium
- Reprise is giving their product images a “festive” touch with just a few clicks
- Brooklyn Tea is scaling their marketing with the help of Shopify Magic for copywriting and digital assets
LoudCrowd Updates By Alexa
We’re excited to announce the launch of first-time customer discounts in LoudCrowd! Brands can now set up automatic discounts that apply directly at checkout for any NEW customers shopping the brand, via a creators’ Storefront.
For help getting this setup in your creator program with LoudCrowd, reach out to your dedicated Client Strategist or [email protected].
