Influencer Marketing News: Snapchat’s Confidential IPO
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Influencer Marketing News Weekly Roundup: Snapchat Quietly Files For IPO, Instagram's Livestreaming, & More
This week on the Mediakix blog, we interviewed Snapchat and YouTube influencer Shonduras and highlighted the top 20 Musical.ly stars in an infographic. We also broke down the top 10 mobile advertising statistics for 2017 and evaluated how marketers can leverage Musical.ly’s features.
Today’s roundup of influencer marketing news will touch on Facebook’s most recent ad metric mistakes, EA’s new FTC disclosure rules, and more.
Facebook Puts Out Fires This Week
Despite Facebook’s suggested lead in digital ad growth, it’s been a rough week for them with advertisers (Digiday). Late last week, advertisers started to worry about whether their ads were being displayed alongside fake-news. Facebook promptly cut fake-news publishers from its display ad network. Most are saying this development is unlikely to affect its ad revenue and relationships with advertisers (Digiday).
Additionally, it was revealed Facebook miscalculated several metrics, including: 1)organic reach of posts; 2)video completions; and 3)time spent on Instant Articles. This has led Facebook to do two things: 1)launch a measurement council and 2)provide more third-party verification (Facebook). Even though it is unlikely that marketers will abandon Facebook because of miscalculation blunders, many will become more wary of what Facebook’s metrics really mean for their campaigns.
EA Plays It Safe With Its YouTuber and Twitch Influencers
Influencers working with Electronic Arts on YouTube, Twitch, and other social sharing sites are being asked by EA to fully disclose their collaboration in accordance with FTC regulations (Venture Beat). EA breaks sponsorship labels into two categories based on the nature of the sponsorship and relationship with the influencer.
The first category, labeled with “Supported by EA” watermark, applies to content created by influencers that received free product, paid travel, or access to events. The second category, labeled with “Advertisement EA”, applies to content created by influencers who were paid to play or promote a game (Venture Beat). EA is also asking its influencers to disclose information shared on social media with either the hashtag “#advertisement” or “#supportedbyEA” (Gamespot). EA’s movement towards full and clear disclosure should serve as an example to marketers on how influencer marketing is ethically and legally implemented.
Snapchat's Newly Filed IPO
Snapchat’s parent company, Snap, filed for a $25 Billion IPO this week (Wall Street Journal). It is the largest IPO since Alibaba in 2014 ($171B valuation) and the largest U.S. tech IPO since Facebook in 2012 ($81B). Snapchat’s IPO is happening in a sparse year for initial public offerings. 123 U.S. tech companies, down 20% from last year, (Reuters) have publicly listed their shares so far this year.
The company’s revenue, which is forecasted to reach $367M this year (eMarketer), has been driven primarily by advertising to-date. However, the recent launch of a new hardware product, Spectacles (The Verge), indicates that Snap has larger aspirations.
Mediakix will soon post a deeper analysis on the Snap IPO, including what those long-term aspirations might be.
Related Post: Snapchat Ads: A Year-By-Year Timeline
Instagram Joins The Livestreaming Arena
Instagram recently announced that it too will be rolling out a livestreaming feature for its app (Financial Times). Instagram follows in the footsteps of its parent company Facebook. Facebook launched its livestreaming functionality over the summer to compete with existing offerings from YouTube and Twitter. In August, in order to compete more directly with Snapchat, Instagram launched its own version of Stories complete with differentiating features including the ability to tag and include URLs in Stories (TechCrunch).
To drive awareness and engagement on Facebook’s livestreaming platform, the social network paid out over $50M to publishers, celebrities, and social media stars to use livestreaming throughout the summer months into Q3 (Wall Street Journal). For Instagram’s livestreaming debut, it remains to be seen whether the photo and video social sharing app will also launch a similar campaign to promote the app’s new feature.
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November 18, 2016 By Mediakix Team