Walmart and Microsoft Join Hands To Bid For TikTok, Fighting Against A Common Enemy: Amazon.
On Thursday, Walmart confirmed, that it will be teaming up with Microsoft, to bid for the purchase of TikTok. The step they took, is considered as a move forward in the direction to tackle Amazon; Amazon being a competitor for both. In the field of Cloud, Microsoft faces stiff competition from Amazon, whereas, Amazon growing e-commerce market is a threat to Walmart.
It is interesting to know that Microsoft and Walmart are already partners. They have a five-year contract to strengthen their businesses in the fight against a common enemy; Amazon.
It will be a long fight against Amazon! However, if they will fight together, they might get an edge over Amazon. If they succeed in occupying TikTok, they will have access to one of the biggest user databases, consisting of billions of users.
Daniel Newman, Futurum Research analyst, in a statement to Business Insider, clarified the situation, stating:
“With the demographic that TikTok serves, the e-commerce play that can tie to the riches of data being created on the platform will have a greater means to directly monetize with Walmart’s expansive online commerce and logistics experience.”
Though, according to Newman, teaming-up to purchase TikTok, can not be seen as a direct take to fight against Amazon. It is more like a small part of a larger picture; the larger picture, is yet to be revealed.
He also added that if the deal between Walmart, Microsoft and TikTok goes through, Amazon could strengthen its ties with Facebook and Instagram. It will lead to a bigger social media e-commerce market.
A statement released by Walmart showed a clear sign of excitement by the company. Walmart is planning to use the audience database of TikTok for advertisement and increasing its reach to more audiences.
The statement says: ‘We are confident that a Walmart and Microsoft partnership would meet both the expectations of U.S. TikTok users while satisfying the concerns of U.S. government regulators,’
No one can question the popularity of TikTok. In the U.S market, it has nearly 100 million users. However, the parent company ByteDance is under immense pressure by the government of the U.S. The U.S government is forcing ByteDance to either sell the company or quit business from the U.S, as it fears that the company is just a puppet for the Chinese government and it could be seen as a threat to the cybersecurity of the U.S.
It is not just Microsoft which is showing interest in TikTok. There are several other techs. Firms which are seeking to acquire the database of TikTok, Oracle is amongst one such big name.
The asking price for TikTok is yet not revealed by the parent firm ByteDance. However, it is reported by the Wall Street Journal that the value estimated is about $30 billion for the business of TikTok in the U.S.
Although, the bidders feel that TikTok is expecting too much for the business. Yet, no comments on this have been shared by the TikTok.
TikTok has always played smart and tried to portray a neutral outlook, hiding its roots which are in China. One such notable step was hiring Kevin Mayer as its American CEO for the business.
Unfortunately, Mayer did quit TikTok only completing just a few months of his service in the company. The reason given to the employees of the company was ‘political environment has sharply changed,’ which is indeed the truth.
ByteDance formed TikTok in 2017, they later bought Music.ly a video application which was very popular with kids in the US and Europe.
The U.S government fears that the Chinese application is sharing the data of its people with the Chinese government. However, the owners of the application deny any such claim.
With the U.S president determined to shut down the business of the Chinese application in the U.S. It would be impossible for TikTok to escape this without facing the damage.
The Chinese application has until September 15, either it can shut its business in the U.S or sell it to an American company.
President Trump has in a statement on August 18, stated that Oracle was ‘a great company’ that ‘could handle’ buying TikTok. However, he didn’t specifically comment on which one is the best (Microsoft or Oracle).
TikTok Trump Row: CEO Kevin Mayer Calls Quit
- TikTok confirmed CEO Kevin Mayer’s departure in an emailed statement and said the political dynamics of the last few months have “significantly changed” the scope of his role.
- Former Disney executive, Kevin Mayer had joined the TikTok in mid-May and resigned just after 100 days.
Kevin Mayer, TikTok Chief Executive Officer has left the company in less than four months after he joined the world’s largest short video app in mid-May. According to an internal memo viewed by Financial Times, TikTok’s general manager Vanessa Pappas will take over the position on an interim basis.
Mayer said in his letter to employees,
“In recent weeks, as the political environment has sharply changed, I have done significant reflection on what the corporate structural changes will require, and what it means for the global role I signed up for.”
“Against this backdrop, and as we expect to reach a resolution very soon, it is with a heavy heart that I wanted to let you all know that I have decided to leave the company.”
Over the last few weeks, TikTok faced tremendous pressure from the Trump administration over its links to China. On August 6, Trump also signed an order banning TikTok and WeChat in 45 days if they don’t sell the app’s U.S operations though they have time until mid-November to divest itself. Mayer “did not anticipate the extent to which TikTok would become involved in tensions between China and the U.S.”, sources reported to Financial Times.
Recently, TikTok filed a lawsuit against the Trump administration for banning transactions with ByteDance. TikTok is owned by Chinese internet company Byte Dance that is caught amidst growing distrust between Washington and Beijing. Trump administration accuses the app as a national security threat to the U.S.
The impending TikTok sale attracted investors interest starting from Microsoft, the front runner to least expected Oracle.
TikTok spokesperson in a statement to TechCrunch said,
“We appreciate that the political dynamics of the last few months have significantly changed what the scope of Kevin’s role would be going forward, and fully respect his decision. We thank him for his time at the company and wish him well.”
ByteDance’s founder and CEO Zhang Yiming said Mayer had joined the firm just as it was “entering arguably our most challenging moment.”
“It is never easy to come into a leadership position in a company moving as quickly as we are, and the circumstances following his arrival made it all the more complex.”
TikTok has also been targeted in India as it was one of the 59 Chinese apps banned by the Indian government in June following a border clash between India and China.
Before joining TikTok, Kevin Mayer worked at Disney for over 27 years and was head of direct-to-consumer content and international business at Disney who oversaw the launches of Disney+ and ESPN+. Mayer left after Disney named Bob Chapek the company’s new CEO. Mayer was considered a longtime contender for the CEO position.
TikTok Market Struggles In Midst Of Trade War Between USA and China!
The uprising trade war between the USA and China is not a new issue in the market. Everyone knows about the ongoing trade war between the two countries. Among these tense scenarios, TikTok is fighting hard, not to get trapped in between. However, it is hard to avoid the damages to the ship when you are in the sea and get dragged in a sea storm.
After facing banishment from its largest user market, i.e. India, now TikTok is facing the threat of getting banned in the USA. Recently, Secretary of State in the US, Mike Pompeo announced, that the USA is in the process of banning the Chinese application TikTok, in the USA. This announcement came soon after India banished 59 Chinese apps from its market.
USA President, Donald Trump’s re-election campaigns clearly showed dissatisfaction with China. The campaign showed support to Pompeo’s statements, supporting the banishment. One of the campaign ad slogan used by the Trump campaign announced: “WARNING: China is spying on you.” This campaign was visible on Facebook and requested users to sign a petition in support of the banishment of TikTok.
However, in response to this, the TikTok spokesperson blamed Facebook. They said that Facebook is charging money for the campaign and defaming TikTok to uplift its product which is Instagram Reels.
Instagram recently launched this new feature on its platform. The feature also allows the users to create short videos, just like TikTok.
Although TikTok is among the less favorable advertising option among the advertisers. Even though TikTok has or say had 2 billion users, still due to the high price of advertisement advertisers less likely trusted TikTok for advertisement purposes. Therefore, not many advertisers are concerned about the war and banishment on the Chinese application. Most of the advertisers stated that the TikTok was still in an experimental phase of their advertisement strategy.
One of the main reasons for that could be the reason for TikTok being new in the market. It has been only a year since TikTok provided the option for advertisement on its platform. However, instead of being new TikTok received several positive responses from the advertisers. The brands were impressed with the growth and advertising solutions provided by TikTok. However, still, TikTok needs to climb multiple stairs to reach the moon it is dreaming, since the standards of the market are set quite high.
The most important factor related to TikTok is brand safety. Due to its origin from China, many brands are keeping their distance from the platform. They intend to maintain this distance even if TikTok moved its operations from China.
According to TikTok, they removed nearly 49.2 million videos from their platform. These videos did not follow their community guidelines. They did it between the time frame of 1st July and 31st December. They also claimed that nearly 89.4% of the removed content was never viewed by anyone on the platform, hence this content never received any reviews. However, around 5 million videos with exploited content, that did not follow the terms and services policies of the platform got viewed by people, raising another concern in the market.
To make sure that the company provides a safe-advertising solution to the advertisers, the company has decided to work with several different third-party clients like Openslate, Doubleverify, Integral Ad Science, and Moat.
A spokesperson from TikTok stated, “We’re in the early stages of working with these partners and will be able to provide more information at a later date, but we can say that advertisers are excited by these partnerships and the controls that we are seeking to provide for their campaigns.”
A survey found that the most downloaded users of TikTok are between 6-18 year old. This data is from the UK, from the year 2019. Also, during the period of lockdown, 14% of children between the age of 3- to 10 years downloaded TikTok, and 31% were between the age 13-18 years of age. The data was issued by the U.K communications regulator Ofcom.
According to an ad buyer, TikTok violated the policy of the Children Online Privacy Protection Act, when the application was known with the name of Music.ly. Later, TikTok paid $5.7 million to settle the Federal Trade Commission allegations. The allegations were made due to the collection of personal information from children, aged under 13-years. However, Musical.ly was ordered by the authorities, demanding the removal of videos uploaded by the children under the age of 13 years. As these videos were uploaded, without the concern of the child parents.
Brendan Gahan, partner and chief social officer at digital agency Mekanism, issued a statement stating, “that is a bad way to introduce yourself to a new market.”
When announced, Mekanism and its clientèle did a review of the details of the violation. The news regarding the violation stated: “planned activations under the microscope,” said Gahan. However, the Makanism discovered that the mistake was made by Music.ly.
To be clear, TikTok launched in 2016, and ByteDance purchased Musical.ly in 2017 and later in 2018 transferred its users to TikTok.
However, TikTok still faces a threat to COPPA. Federal Trade Commission and the USA. Department of Justice is looking into the claims filed that the short-video application is not deleting the videos of underage children on its platform. If these claims are found to be true and the commission and the Justice Department of the USA find any such content which includes children under age the age of 13 years, then TikTok will have to face severe challenges in the USA.
However, according to TikTok, it takes “safety seriously for all our users,” and also offers a “limited app experience” in the USA.
Hence, providing extra safety experience to the users in the USA. TikTok also has a 12+ ranking on the app store. Which means parents can block the application for their children, who are under the age of 13.
Reports suggest that the short video application is planning to generate a revenue of $500 million from the USA market. To achieve that TikTok has hired sales representatives. It has also launched its self-service advertisement tool. These tools will help advertisers to create a high-end graphic and advertising content with sound. Also, TikTok is now aiming for the SMEs, to make sure it attracts the small and medium enterprises TikTok has launched several luring plans for the business so that they can start advertising on its platform.
Also, advertisers who have boycotted Facebook are looking for a new platform to get started with their advertisement campaigns.
The increase in the audience on the platform is one of the greater factors that the short video platform is attracting an audience for the advertisement.
Apart from the condition of banishment on the application, all the other factors play in favor of the app.
According to Amy Luca, chief executive of influencer marketing platform theAmplify, “There’s a cautious tone but there’s not a big concern for brands right now.” If the application saves itself from the trade war between the US and China, “At the end of the day, advertisers will want to be where their audience is spending time and right now, if you are looking to engage a young audience, TikTok is a good strategy.”
TikTok Launches New Business Solutions To Help SMEs in MENA
The short-video application has recently launched a set of new advertising solutions. TikTok strongly feels that these solutions will help the small and medium enterprises in the Middle East region. By using TikTok for business, these SMEs can grow their market and brand value.
TikTok has made sure that the new tool is easy to use, and it can help advertisers reach global audiences with their products. Since the small and medium businesses are severely affected by the COVID crisis, the platform with the new feature will help them cope with the issue to some extent.
The Back-to-Business credit plan includes a $100 million advertisement credit reserve for SMEs. This credit is devoted to rebuilding small businesses and brands. The credit is available for worldwide markets, including the MENA region as well.
Now, the TikTok business is equipped with self-service tools. These tools will help the advertisers in a step-by-step campaign creation process. As the application is known for its creative content by its users, the toolkit will help the advertisers to create unique advertising content.
Therefore, due to the extended reach to audiences, more brands realize the potential of advertising on this application platform. With the new toolkit in place, TikTok is going to attract more number of small and medium businesses.
“TikTok’s immersive, short-form videos give businesses a platform to participate and engage with a community known for its creativity, ingenuity, and joy,” said Blake Chandlee, Vice President, Global Business Solutions at TikTok.
Further, Blake stated, “As our marketing solutions scale and evolve, we’re continuously building for the future and aiming to meet the growing needs of our partners. We’re excited to continue supporting our community by providing the tools and resources for SMB owners to navigate these challenging times.”
In another statement issued by Shant Oknayan, General Manager of Global Business Solutions MENA:
“The MENA region is a big focus for TikTok’s efforts in the Small and Medium Businesses space. SMBs play a vital role in communities across the region, and we are working very hard to ensure that those businesses can leverage the power of the platform to further build brands in a new, authentic, and engaging way. Brands will also have the flexibility to expand their reach beyond the current media ecosystem and tap into those consumers and opinion leaders that cannot be reached on other platforms.”
The TikTok’s self-service toolkit is available globally:
With the help of a simple interface, the TikTok AdManager toolkit for business empowers all businesses including SMEs. However, creative tools make it even easier for advertisers.
Key features of the product include:
Creative tool: The creative toolkit helps the advertisers to unleash their skills. These tools help the advertisers match the innovative standards of the application and its users. With the help of TikTokAdStudio, brands can tell their stories and can portray the most authentic version of their brand to the audiences.
Flexibility in the budget: The budget flexibility helps different businesses set a budget for achieving different goals.
Performance targeting: The advertisers will be able to target their audiences smartly and effectively. The toolkit assures them of reaching the right audience.
Business accounts: Additive tools will be featured along with the business account. The toolkit will come handy with some additional customization features. These features will give the advertisers a glimpse of engagement with the audience and performance analysis.
Back-to-business program, available worldwide to the users.
The program will provide a $100 million advertising credit to small businesses. The small businesses are greatly affected during this epidemic lock-down. Therefore, the advertising fund will help the users to rebuild their market and get back on their feet in the business.
Small businesses are the backbone of every economy. The advertisement and marketing will help them to get back into the business.
Any small business can apply for this credit. The credit can be availed by applying on the website, under back to business.
India Shook China: Banned 59 Major Chinese Mobile Applications
In a recent decision taken by the Indian government, 59 Chinese mobile applications will be banned, in India. The list of 59 applications included some major, names from the market. TikTok, which had a higher share of its business in the Indian market, is included in this list.
It would be interesting to know that in 2019, when TikTok was briefly banned, in India, ByteDance, the parent company of TikTok reportedly lost more than $500,000 daily. The User share of TikTok has increased tremendously since then in the Indian market. Therefore, the news must have come as a disaster for the company.
The Indian government took this decision after the Indian intelligence informed the government about the potential risk of security from these applications.
Since the brutal face-off between the Chinese and Indian army in the “Galwan Ghati“, a place in Ladakh, the air is stiff between both the countries.
In a press release following statement was issued by the government stating, “The Ministry of Information Technology, invoking its power under section 69A of the Information Technology Act read with the relevant provisions of the Information Technology (Procedure and Safeguards for Blocking of Access of Information by Public) Rules 2009 and in view of the emergent nature of threats has decided to block 59 apps since in view of the information available they are engaged in activities which are prejudicial to sovereignty and integrity of India, defence of India, the security of the state and public order”.
The press release further mentioned, “The Computer Emergency Response Team (CERT-IN) has also received many representations from citizens regarding the security of data and breach of privacy impacting upon public order issues,”
It clearly stated that this move is to “safeguard the interests of crores of Indian mobile and internet users”.
Since the tension in Ladakh, the anger against TikTok and other Chinese application/equipment was seen, in the Indian market.
The rating of the application started falling continuously on the platform after the incident took place. On Apple store, the Chinese app used to rank in the top-5 free applications which later dropped down to 10th place in the ranking.
Similarly, TikTok saw a fall in ranking on the Google Play store and slipped from third to the fifth position in India, still managed to stay in the top 10 free applications.
It is not just the country of India, which banned the Chinese application!
Taiwan also banned a few Chinese applications due to security concern. However, in Germany, Zoom was restricted for the usage, Including other apps.
Robert O’Brian, the US national security advisor, has clearly stated that the Chinese applications are used as a weapon by the Communist Party of China(CPC) to spread its ideology across the globe.
The younger generation grew highly fond of this Chinese application. The application has this younger fan base not only in India but also in countries like the US and China.
TikTok, the highest downloaded app, had more than 2-billion users. India turned out to be the largest contributor in this success, contributing 611 million user downloads.
According to the report by sensor tower, the Chinese application grew in popularity during the lockdown phase in this epidemic.
The list of 59 Chinese mobile apps included:
- TikTok
- Shareit
- Kwai
- UC Browser
- Baidu map
- Shein
- Clash of Kings
- DU battery saver
- Helo
- Likee
- YouCam makeup
- Mi Community
- CM Browers
- Virus Cleaner
- APUS Browser
- ROMWE
- Club Factory
- Newsdog
- Beauty Plus
- UC News
- QQ Mail
- Xender
- QQ Music
- QQ Newsfeed
- Bigo Live
- SelfieCity
- Mail Master
- Parallel Space
- Mi Video Call Xiaomi
- WeSync
- ES File Explorer
- Viva Video QU Video Inc
- Meitu
- Vigo Video
- New Video Status
- DU Recorder
- Vault- Hide
- Cache Cleaner DU App studio
- DU Cleaner
- DU Browser
- Hago Play With New Friends
- Cam Scanner
- Clean Master Cheetah Mobile
- QQ Security Center
- Wonder Camera
- Photo Wonder
- QQ Player
- We Meet
- Sweet Selfie
- Baidu Translate
- QQ International
- Vmate
- QQ Launcher
- U Video
- V fly Status Video
- Mobile Legends
- DU Privacy
Google Removed TikTok Clone Zynn From Playstore!
Is Google Playing Partial By Favouring TikTok?
Recently, Google removed Zynn from Google play store. Zynn was a successful competitor and a clone of TikTok.
Although, the reason provided by Google for removing the app was the copyright issues. Recently, several incidents have been registered, where Google is seen favoring TikTok in different ways.
Zynn was a clone of TikTok. Hence, Zynn had similar policies and interface, also that of TikTok.
TikTok rival companies created Zynn to compete against TikTok. In a short period, Zynn was gaining huge success. It was nominated as the best application on play store and was among top 10 free applications on Google play store.
Zynn provided money to its users for signing up, watching videos and referrals to friends.
It’s not just the first incidence where Google favored TikTok.
In another incident, due to a dispute between members of the YouTube community and TikTok, the rating of TikTok fell to 1.2 on Google play store.
Users started reporting TikTok and reviewing it with one-star ratings. Soon, Google decided to intervene. Hence, it leads to deletion of user ratings of millions of users. Due to this, TikTok ratings resurfaced to 4.4.
According to Google, the reviews posted mostly came from fake accounts. Although, it is interesting to know that there are millions of fake accounts working on Google play store raise a question on the security front.
Google just didn’t stop there! Soon after deleting the reviews, Google deleted “Mitron”.
Mitron launched in India to compete with TikTok. Mitron was a huge success, as it gained a user rating of 4.4 with 5 million users.
However, Google decided to bring down the application.
The reason provided by Google for removing Mitron was related to its poor functionality.
According to Google, Mitron violated its spam policy. They stated that the application didn’t fulfil the minimum functionality policy. Also had repetitive content, and failed to produce any original content of its own.
Certainly, India contributes a huge user database on Chinese application, TikTok.
Recently, due to the current pandemic events, people of India decided to boycott Chinese products. Several actions were taken in the process. People made sure that the boycott proves to be successful.
Soon, Twitter flashed with the hashtag of #BoycottChineseProducts. As a result, people started uninstalling Chinese applications, on their devices. This led to the creation of an application. This application was capable of determining the Chinese application installed on phones.
However, Google stepped up and took down the application.
According to Google, no application can insist on people to remove other application from their devices.
Google’s policy reads, “We don’t allow apps that attempt to deceive users or enable dishonest behavior including but not limited to apps which are determined to be functionally impossible. Apps must provide an accurate disclosure, description, and images/video of their functionality in all parts of the metadata and should perform as reasonably expected by the user. Apps must not attempt to mimic functionality or warnings from the operating system or other apps. Any changes to device settings must be made with the user’s knowledge and consent and be easily reversible by the user.”
OneTouchAppLabs an Indian startup developed the application. The company confirmed on twitter that the application doesn’t ask people to remove applications on their mobiles. The purpose of the application was to educate people.
In just a period of 10 days, the “remove china application” gained huge success. Millions of people downloaded the application. However, the people who have installed the application can keep using the application, but no new users will be able to download the application.
According to a cybersecurity expert: “The app scan focused on the installed android application package (APK) only. Hence, it doesn’t affect any change in stored personal data.”
After monitoring the current scenarios, It is difficult to understand the roleplay of Google.
It is difficult to decide if Googles’ decisions are effective? Or is it using its policies to favor TikTok, to create a TikTok monopoly in the market?
How To Advertise Effectively On TikTok- Process And Costs Laid Out.
Even though marketers are always discussing to run ads on TikTok, but only a handful of them can do that. The situation has gone even worse during the period of recession.
The cost to run an ad to reach 1000 audience is $8 in the UK. Also, The minimum advertisement budget has to be at least $25,000. Looking at this amount you can guess that this platform is not for those who are looking forward to advertising cheap. However, those who are willing to spend this fortune will have the luxury of advertising on this platform.
The advertisement on TikTok comes into the premium category and it is managed by the sales team of TikTok. They make sure that the advertisement is unique and catchy and worth the hefty price paid by the advertiser. This results in uniqueness and quality of content gaining worthy audience. Hence, they can’t be compared to the misguided ad-campaigns on Snapchat and Instagram.
Recently, TikTok shared a rate card with the media in the UK.
The Takeover ads.
These type of ads are generally portrayed to the audience as a start-up ad. The time frame of this ad consist of 3-5 seconds.
For each category, only one advertiser can put an ad, for a day. This ad costs around $53,000 per day and is used to buy 8.9 million impressions.
A Topview ad.
This ad appears as a start-up ad when the application starts. The ad can usually last up to 60-seconds. These advertisements also contain sound.
The cost to run this advertisement is $65,000 per day. It will help advertisers to reach 7.4 million impressions. A Takeover ad can be converted to a Topview ad if the advertiser is willing to pay the difference in the amount.
In-Feed video (Maximum for one-day).
The usual time duration for these ads is 15-seconds. They are shown in video feeds of the user and usually appear in the fourth feed. To reach 3.6 million impressions with these an advertiser has to pay $26,000.
Brand Premium In-Feed videos.
This type of ad on TikTok can cost an approximate of $25,000. These ads are randomly placed in the feeds of user are shown after every 130th feed a user completes.
The Hashtag Challenge.
The Hashtag challenge is quite popular on the TikTok. A user can create a video and post it under a hashtag. This hashtag works as a challenge for others. It will challenge them to compete with the video content by posting similar content in a better manner.
https://www.youtube.com/watch?v=-Q3a7BSAJ5A#action=share
The advertiser can add their voice-over to the hashtag or they can simply add a piece of official music. This format includes both, One day ads and brand takeovers. The cost of this format of advertisement is $130,000. Features of this advertisement include Special content protection, Banner, personalized hashtag and their challenge page.
The Hashtag Challenge+
By paying an additional fee ($130,000+$30,000=$16,000), an advertiser can upgrade their ad to Hashtag challenge plus. The advertiser gets all the features of Hashtag Challenge, besides, they can direct people to their app or store within the application.
The Branded Effect.
An advertiser can attach 2D animated lenses and a user can use lens by their hand or face movements. Tik-Tok creative team created this effect. The cost of this format of advertising is $45,000 for a time frame of 30-days.
Even though all these options may seem costly to a new advertiser, they can take a test drive with cheaper options available. Maybe, that is the reason so many brands and influencers are collaborating to advertise the product on Tik-Tok.
Jide Maduako, the CEO of Yoke Network said, “Influencers are the only way to advertise on TikTok because all the best viral content on the platform is made by them.”
He also stated, “Advertisers need to be paying closer attention to the consistency of views of influencers. It’s a strong indicator as to how successful your video will be when brokering deals.”
The following information is provided by TikTok regarding the creator package.
The Mid-tier package.
The package can consist of a total of five-creators, all of them will have a minimum of million followers on the application. The cost of the advertisement with the help of influencers is $12,000.
The Top-tier package.
The number of creator or influencer will remain the same(five) as of the Mid-tier package. However, influencers will have followers between 1 million to 5 million. The package will cost $35,000.
The Value Hybrid package.
The package will include a total of five influencers. Among them two will be from the Top-tier and Three will be from the Mid-tier. The cost of the package will be $20,000.
The Premium Hybrid Package.
With Premium Hybrid Package You will get one “VIP” influencer and two of each(mid and top tier) influencers. The package will cost $30,000.
Influencers Share Their Secret to Earning Big Bucks on Social Media
Key Insights
- Affiliate marketing and paid advertising are one of the top revenue sources but the real bread and butter of influencer income is brand sponsorships reveals a survey of 69 digital stars by Influencer.co
- The survey results were gathered at the beginning of 2020, before the pandemic that has changed the consumer and digital landscape.
- The result highlighted that influencers have diversified income sources and can help them earn even in an economic downturn.
A goal is a dream with a deadline.
– Napoleon Hill
Making a living out of online business is a dream that is now achievable. For many, it is a dream turned reality but with a fair share of struggles. A survey of 69 influencers conducted earlier this year by influencer platform Influence.co highlighted myriad ways available for creators to make big money in 2020.
The results gathered before the pandemic outbreak reveals Brand sponsorship as the top moneymaker with 78% of creators calling it the main source of income. 58% of creators highlight paid advertising like YouTube AdSense also amongst the top three sources of income. However, this category has been dropped off recently as advertiser demand has run down due to the pandemic.
However, influencers have leaned on alternate revenue streams and moved away from sponsored posts as brands have paused/postponed influencer campaigns in 2020. 41% of survey respondents have named commission-based revenue as a key income driver followed by affiliate marketing (39%). Respondents also pointed to physical merchandise (26%) as one of the top income sources.
These are income sources where influencers are paid a fee for e-commerce sales that they drive from their social accounts.
Below is the breakdown of income sources that is listed by influencers as primary revenue sources in the survey.
1. Brand Sponsorships (78%)
78% of influencers surveyed listed brand sponsorships as a primary source of income.
https://www.instagram.com/p/BYwIRyWgHqY/?utm_source=ig_embed
H&M has the largest followings as women reflect H&M style all by themselves as a part of the influencer campaign. H&M partnered for its fall 2017 collection with two influencers -fashion blogger Julie Sariñana and model Ela Velden. Sariñana promoted the clothes on her own Instagram account as she loved them.
Brand sponsorships are mostly sponsored posts on social platforms like Instagram, YouTube, and TikTok. The most reliable way of making money and the main source of income has taken a hit in the last few months mainly because:
- Advertisers have trimmed their budget to save costs.
- Brands are facing economic headwinds caused by the pandemic.
As reported by Business Insider, the frequency of sponsored posts has dropped down on Instagram and 22% of creators have lowered their rates due to slow demand.
As this category is affected by the economic downturn, brands are partnering with influencers to conduct live streaming as consumers at-home interest in real-time videos have spiked.
2. Paid Ads (58%)
The second-highest source of income listed by influencers in the survey with 58%.
Influencers can directly earn through ads that play in their videos across platforms like YouTube, Facebook, and Instagram.
Instagram says that Live creators have seen a 70% increase in video views during the pandemic. It now prepares to launch new tools that enable video creators to earn money that includes badges that viewers can purchase during Live Instagram videos and the introduction of IGTV ads.
YouTube’s Partner Program allows influencers to earn money by placing ad breaks within the content on their channel. Ad revenue earned directly through Google placed ads is the main source of revenue and the rate YouTube pays creators depends on factors like video watch time. And viewer demographics. And if a video climbs millions of views then creators receive a big check from YouTube.
For instance, YouTube creator Groth told Business Insider that normally his channel earns $9 and $12 for every 1,000 views. BI also reported that YouTube creators earned from $3600 to $40,000 off a video with 1 million views.
3. Commissions (41%) and affiliate marketing (39%)
Affiliate marketing has been a popular source of income for influencers and 41% of influencers surveyed pointed out commission on sales as a top source of income.
Another popular revenue source for influencers.- fashion and lifestyle influencers on Instagram, Tech reviewers on YouTube, and media publishers like The New York Times that generates affiliate income on its review site, The Wirecutter.com
In this type of arrangement, creators can earn a commission on sales made through a promotional code and affiliate marketing where they promote products with a trackable link.
https://www.instagram.com/p/BZQolWBB5Eu/?utm_source=ig_embed
In March 2020, the category saw a rise in revenue as many companies shifted their focus to e-commerce sales due to lockdown policies whereas April was a mixed bag as some brands like Walmart, Victoria Secret suspended their services.
4. Event Appearances (29%)
Event Appearances and Speaking engagements are big revenue streams for some YouTube creators who have diversified their businesses.
A recent college grad and YouTube creator Ruby Asabor (170,000 subscribers) have presented for events of universities like NYU and Rutgers in the US. She is a motivational speaker and recently many events and tours have been canceled owing to the pandemic. She explains in her video how the business has changed due to coronavirus and events are postponed.
https://www.youtube.com/watch?v=rlG26M1a2gk
5. Physical- Merchandise sales (26%)
26% of the influencers points out physical merchandise sales as a source of revenue. The ‘merch’ trend has picked up in recent years. While some have built online direct sales to consumers and others have partnered with retailers like Walmart and others.
Blippi is a popular YouTube star who makes educational videos and has more than 21 million subscribers. The man behind the creation is Stevin John. Recently, Jazwares LLC which makes toys has created a line of items “My Buddy Blippi” which includes figures, plush toys, and toy vehicles. It aims at helping children count or learn colors by putting accessories inside numbered or colored boxes. The products will be released through Walmart and Amazon.
The North Start for the toy industry is Ryan Kaji, an 8-year-old who is the face of YouTube channel ‘Ryan’s World.’ According to Pocket. Watch, retail sales for Ryan-branded products had hit $200 million in 2019.
6. Digital Product Sales (16%):
Fitness influencers on Instagram and YouTube witnessed a spike in engagement and direct-to-consumer sales due to the coronavirus pandemic.
Many fitness influencers sell fitness digital membership programs in the form of app or classes or websites. For instance, Rachel Brathen, aka Yoga Girl, is a Swedish yoga teacher and a New York Times’ best-selling author. She leverages her Instagram account to preach and encourages yoga lifestyle and sell classes from anywhere in the world.
As reported by Business Insider, a fashion stylist, and influencer, Audree Kate Lopez has nearly 30,000 followers and conducts an online course Fashion Fundamentals for college students.
7. Followers donations(6%)
Many influencers receive donations or gifts via live streaming through membership platforms and social media platforms respectively. Take a look:
- Influencers receive donations from followers through Patreon or Buy me Coffee.
- TikTok, Twitch also has features to donate to influencers in real-time.
- In April, Facebook announced the rollout of its star monetization program, where fans can send virtual stars to a live-streaming creator worth $0.01 each.
- YouTube content company launched the “FBE Super” Membership program using Patreon’s Memberful platform. It offers three paid tiers for fans to contribute either $5,$10, or $15 a month to receive exclusive live streams, discounts, or an opportunity to be cast in episodes.
Read more: 26 Stellar Video (YouTube) Advertising Examples To Take Creative Inspiration From!
TikTok Helped UNICEF Gather Funds of $200,000 for the Welfare of Children –
Key Insights:
- The global leader in short mobile videos inspired its community to raise awareness and funds for UNICEF in the latest challenge #JoyOfGiving.
- According to UNICEF analysis, 99% of children and young people under 18 are vulnerable and support disproportionately.
- The challenge was run during the holy month of Ramadan and received an overwhelming response with over 2.3 million views and achieving the donation goal of $200,000.
- TikTok hosted a number of celebrities and regional content creators in 17 thought-provoking live sessions.
- The funds will be utilized by UNICEF to deliver crucial resources and relief to children across the MENA region.
In recent times, TikTok has partnered with UNICEF MENA (the Middle East and North Africa) to help the community gather information about COVID-19 and its preventive measures.
Background
UNICEF is on frontlines worldwide with responders in this pandemic and provides them information and resources to keep children healthy and safe from sickness and violence. TikTok, a pioneer in short mobile videos with its latest challenge #JoyOfGiving is raising awareness and funds for UNICEF’s mission.
Be Smart: According to UNICEF analysis, the children and young people are vulnerable to coronavirus and urgent action can ensure that children don’t feel the impact of the COVID-19 crisis in the decades to come.
Details: The challenge #JoyOfGiving ran during Ramadan, the month of giving, invited TikTok’s community of content creators to help in the donation drive by participating in 17 thought-provoking Live sessions.
The campaign received an overwhelming response with over 2.3 million views, easily achieving the donation goal of raising $200,000. UNICEF will utilize these funds to deliver relief and resources to the children and affected communities across the MENA region.
The intrigue: TikTok hosted several celebrities and regional content creators like Yara (@yara), Balqees Fathi (@balqeesfathi), Khalid, and Salama Al Ameri (@khalidandsalama), Carmen Soliman (@carmensoliman), and Raya Abirached (@rayaofficial) for interactive sessions.
The session focused on UNICEF initiatives to provide essential supplies to children and personal experiences during COVID-19.
UNICEF Mena hosted live sessions on its TikTok page featuring renowned musician and composer Jad Rahbani and senior nutrition advisor Vilma Taylor.
The bottom line: The #JoyOfGiving challenge is an initiative by TikTok for the MENA region to spread positivity in adverse times and raise awareness of the critical issues.
Read on: Dubizzle Launches Their Own Self-served Advertising Platform
Is Zynn, A Clone Of TikTok, Set To Dominate The Market? Certainly Looks Like So!
From a period, TikTok market is suffering from a lot of negativity. After being criticized for its user data policies in the US, the TikTok market is facing a downfall in its active user database in India. Several of its accounts have been suspended, as complaints have been filed against them for posting unethical content. Now, TikTok is facing a challenge due to the #BycottChineseProduct revolution in the Indian market.
Even in its own country of origin, Its problem doesn’t seem to end. TikTok is facing tough competition within its country bounds. Recently, Zynn, which is a replica of TikTok is making its way on the top charts of Google Playstore and Apple store.
Zynn has been ranked as the number one application in the free app category on Apple store. Whereas, it is among the top 10 applications on Google play store.
Zynn is a doppelganger of TikTok! Every aspect of Zynn is similar to that of TikTok, even they have a similar user interface. The only difference is, it pays its user to watch a video, refer to friends and even just to sign up.
This is also a USP which keeps Zynn ahead of its competitors.
The only distinct feature of Zynn interface is the dollar sign, appearing on the screen. The “$” sign appears on the left-hand top corner, it also acts as a timer for the video.
The moment a user starts watching a video, the dollar sign gets filled with colour. Once the video is complete, and the sign is filled, it gets added into your credit points. The user can redeem these points, and convert them to gift cards or cash.
There is no personal proof of the redeeming of cash and gift card. Although, there are some YouTube videos which claim to have received the balance in their account. They show their bank statements, confirming the above statement.
Zynn didn’t appear from non-existence. Zynn is a byproduct of the competitive market of China. It is launched and promoted due to an ongoing rivalry of tech companies in China.
Kuaishou, a well-funded start-up running the biggest video apps, created Zynn. To promote Zynn, they used the same payment technique used by Douyin. Douyin is a Chinese version of TikTok.
Zynn supports in-app advertisement purchase. It is its only source of income. Currently, as per the reports they are not selling advertisement in the US.
Recently, Zynn received a hefty investment, amount of $2 billion. Tencent a Chinese tech giant invested this amount in Zynn. Tencent is also a creator of Wechat which is the most popular Instant messenger in China.
The report posted by The Information, in December stated that the investment was made to “contain the threat of ByteDance,” the creator of TikTok and Douyin.
Following are some of the reasons responsible for the quick growth of Zynn in the market:
- It pays its user an approx of ($0.12), to watch a few minutes video.
- Secondly, the application provides you with money for every referral.
- Big brand promotion can provide up to $110. If you make five people sign up, and they keep using the application continuously.
- The brand obtains its data from Kuaishou, hence, the application is pre-loaded with videos.
A report states that most of the video uploaded on Zynn are from Kuaishou database. Zynn is slowly attracting people to leave TikTok and shift to its database.
After downloading, you can directly start watching the videos. Though, If you are willing to earn rewards you must sign up first.
Also, you must know that you can’t create a direct account with Zynn. It has to be either with Facebook, Gmail or Twitter. it will verify your phone number, and in case of failed verification, you won’t be able to sign up.
It requests access to the device location. However, you can deny it. You also have to attach your Paypal account for the payments you will receive.