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This week in influencer marketing news, we examine the explosive growth of digital ad spending by consumer packaged goods companies (CPGs), Snapchat’s latest milestone in its pursuit to become the biggest social media platform in the world, why Instagram is now considering implementing a new revenue sharing model, and more.
For more in-depth articles on salient influencer marketing trends, visit the Mediakix blog. Recent posts include an in-depth case study on how brands are partnering with YouTubers to create creative, engaging content, an explainer article on the differences between brand ambassadors, social media influencers, and celebrities, and a look at how long-established brands are finding new life through social media marketing. We also published an original infographic about Snapchat’s shifting demographics and explored Old Spice’s Dream Runner campaign in our regular Instagram marketing case study series.
According to a new eMarketer report, U.S. consumer packaged goods (CPG) will spend $6 billion on digital advertising in 2016, an increase of nearly 20% from the previous year. The study also found that, while this sector currently accounts for less than one-tenth of total U.S. digital ad spending (8.7%), the annual growth rates for CPG advertising spending is 13.5%—only spending in the automotive and entertainment industries is projected to grow faster.
Bloomberg recently reported that Snapchat now has 150 million daily active users, enough to surpass Twitter in terms of people who use the platform on a daily basis. (Twitter still claims 310 million monthly active users, according to the most recent earnings report.) While Twitter was once the second-most popular social media platform after Facebook, the rise of new social media offerings (like Snapchat and Instagram) have led to its stagnating growth.
Related Post: [Infographic] How Snapchat Demographics Are Shifting
To incentivize the creation of more polished user-generated content, Instagram’s parent company Facebook is now considering sharing revenue produced from live videos (i.e. Facebook Live) and other popular types of content across both Instagram and Facebook. The move would help solidify both Facebook and Instagram’s role as a major distribution platform for original content and pose a threat to the Google-owned video platform, YouTube, which already uses a revenue-sharing model (Wall Street Journal).
Related Post: Advertising On Instagram Without Sponsored Ads
In an effort to capture the attention of young fans, the U.K.’s biggest tennis tournament, Wimbledon, has agreed to a three-year deal with Snapchat. The partnership will give Wimbledon its own “Live Stories” (featuring Snaps from people attending qualifying matches and official Wimbledon contests) and Snapchat Takeovers from the game’s biggest stars. “We’re trying to create an experience that’s the next best thing to being at Wimbledon,” said Alexandra Willis, who heads up digital at All England Lawn Tennis and Croquet Club, Wimbledon’s organizer (Digiday).
Related Post: How The NBA & MLB Are Leveraging Snapchat To Reach Fans