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TikTok Surpassing Facebook in Influencer Marketing Spend in 2022, YouTube by 2024

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When it comes to influencer marketing and the budgets that businesses and brands spend (US) on the digital marketing campaigns, TikTok is set to overtake Facebook by the end of 2022, and projected to continue to climb the mountain, according to TechCrunch.

It’s clear that Instagram is worried about their hold on the top spot, as TikTok continues to climb the ranks, and given the amount of updates Instagram has implemented to make it’s app feel more like TikTok (more on that), the brands are digging in their heels to collide for supremacy atop the influencer marketing mountain.

The report cites a new data study from analysts at Insider Intelligence (previously eMarketer) that indicates that TikTok is set to overtake Facebook in influencer marketing spend within 2022, and will take over YouTube, who currently sits in the second spot, by the year 2024.

Currently within the United States, YouTube is seeing $948.0 million in influencer marketing dollars spent on its platform which is ahead of Facebook’s $739.0 million, but TikTok has already topped YouTube based on marketer usage for influencer centric marketing campaigns.

Also noted were Instagram’s recent rolling back of some recent updates to replicate TikTok, but some kickback, which included a complaint from celebrities like the Kardashians, forced a change in approach.

Instagram could be planning for larger scale changes in the future, so it can slide more fluidly into an influencer marketing centric focus. Whether or not TikTok SEO will force Instagram to embrace search engine optimization style marketing remains to be seen, but change is coming.

Smaller influencers are set to see some growth in opportunities as well, as Instagram’s feed adjustments would allow smaller “micro” and “nano” influencers to get a bigger cut of the revenue cake. To clarify, Nano-influencers are considered to be those with 1,000-4,999 followers, with micro-influencers clocking between 5,000-19,999 followers, and with TikTok content creators who would fit in those categories already generating benefits, it’s vital for Instagram to also point focus in those directions.

The report predicts that “nano” influencer spending will rise 220.5%, and spending on “mega” influencers will grow only 8.0%.

There is also data to show that marketers may prefer to work with smaller creators, for a number of reasons that include cheaper rates and higher engagement rate potential.

“TikTok is surging in popularity for influencer marketing, but it’s still nowhere near Instagram in terms of spending or marketer adoption,” Insider Intelligence principal analyst Jasmine Enberg said. “That’s in part due to the higher prices Instagram creators charge for content, but also because of its wide array of content formats, most of which are now shoppable. Still, Instagram is trying to be more like TikTok so that it can attract smaller creators, which TikTok is known for. That’s key for Instagram to retain its lead in the influencer marketing space, especially as many creators on TikTok now boast follower counts that rival or surpass those on Instagram and YouTube.”

The report closes by predicting that 74.5% of U.S. marketers will use influencer marketing in 2022 and influencer marketing spend will rise by 27.8% to $4.99 billion this year alone.

 

 

 

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Patreon Hires Twitch’s Adiya Taylor as New Corporate Communications Lead

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Content creation platform Patreon has officially tabbed Adiya Taylor as their new corporate communications lead, effective in February, according to an official announcement.

Taylor worked for Amazon’s video game streaming platform Twitch for three years in a variety of roles, most recently serving as the company’s senior monetization communications manager prior to her departure.

Taylor’s hiring comes after Patreon brought on Brielle Villablanca as Vice President of communications and creator advocacy back in November 2023.

“I’m thrilled to begin crafting and implementing a communications strategy around policy, trust and safety, product and more,” Taylor said during an official post on the networking platform LinkedIn, adding that she believes Patreon is a “true advocate” for creators.

“I’m looking forward to more storytelling around how we’re fostering fandom so that creators own long-lasting businesses built around their artistry,” Taylor added.

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Microsoft Bringing Four Games to Rival Consoles

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Microsoft has responded to recent reports that there will be changes to it’s first-party strategy and has confirmed that four game titles will be released on rival consoles.

More specifically, Xbox head Phil Spencer said that ‘Starfield’ and ‘Indiana Jones’ will not be among the four titles heading to other platforms. Both games had a number of candidate platforms, per reports, adding that this is “not a change to our fundamental exclusive strategy.”

“We don’t damage Xbox and we can grow our business using what other platforms have to help us with that,” Spencer said, according to GamesIndustry.biz.  “Looking forward, I think there is an interesting story for us of introducing Xbox franchises to players on other platforms to get them more interested in Xbox. We think there’s a good brand value for Xbox there.”

Xbox president Sarah Bond announced that Activision Blizzard games would begin to be added into Game Pass offerings, starting with Diablo 4, which will be added on March 28th.

Additionally, Bond said that Microsoft is still working on hardware for the future and that their focus regarding the future is “delivering the largest technical leap you will ever have seen in a hardware generation.”

 

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Sega’s Revenue See Rise to $27 Billion

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Sega Sammy has released its financial report for the nine-month period that officially concluded on December 31st, 2023, and that report that demonstrated a rise in overall sales and profit despite a decrease in sales for Sega’s new titles.

That decline was offset by growth in pachislot and pachinko machines, however Sega had lowered its sales forecasts for the full financial year.

Here is a breakdown, courtesy of GamesIndustry.biz.

  • Net sales: ¥349.9 billion ($2.3 billion, up 28.7% year-on-year)
  • Operating income: ¥54.4 billion ($364 million, up 42.4% year-on-year)
  • Ordinary income: ¥57.2 billion ($383 million, up 42.7% year-on-year)
  • Net sales were up 130.3% to ¥120.2 billion ($805 million) in this segment
  • Ordinary income increased by 521.3% at ¥45.7 billion ($306 million).
  • Entertainment Contents segment, which includes video games, net sales were up 4.2% at ¥219.3 billion
  • Profit decreased by 52.5% to ¥19.7 billion ($131.8 million) as a result of weak game sales

You can read a breakdown of the entire report at GamesIndustry.biz here.

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