Beyond Platforms: Undervalued Startups
Aggregating millions of consumers, high engagement, multi-platform, structurally expanding, mobile-first, social-first, and inherently organic.
What if social influencers were the next El Dorado? This topic is not new by any means. But, so far, social influencers have only been addressed as an additional media channel to place ads. Current market valuation is in favor of Snapchat and Facebook, rather than Shonduras or Logan Paul.
Let’s think about who could develop the most sustainable business model and drives hundreds of millions of dollars. What comes to mind are startups like Victorious which has taken the lead in this area. Victorious is a mobile app that enables influencers to directly communicate with their fans and, in turn, it allows superfans to become influencers within the fan community. Everybody wins.
Certainly, a strong focus on influencers bears the risk of being dependent on a single person to develop a business. But at a time where audience fragmentation is increasing and the landscape is fragmenting, is it really better to be stuck on a single platform? And thinking about a social influencer, are you really investing in a single person? Most of the traditional intermediates are investing in this “platform”, from talent agencies, studios, TV networks, platform developers, and others.
The picture becomes even more relevant when we look at the opportunities for new business models. Most of the new platforms (social or not) do not allow pre-roll or banners, especially as ad blockers continue to extend their reach.
Whatever the wording du jour is, native content or organic marketing, the end goal is the same: to further blur the boundaries between advertising, platforms, and content. Platforms can offer such services, or at least will be able to in the near future.
No one is in a better position today to accomplish this than influencers. They are the new talent who generate the audience of major online platforms. They deliver the content and value. If we want brands to be part of this trend conversation, rather than just following it, working with influencers through a structured, consistent, and long-term strategy is key. By investing time and resources, we can activate the community management capabilities of platforms that still remain underused.
Last but not least, the talent discovery opportunity on these social platforms is widely underestimated. This reinforces the sustainability of the overall model. Investing in top social platform talent opens the door to an entire network of influencers.
Take a look at the vines of Logan Paul, Cameron Dallas or King Bach and look for the number of unknown talent sharing the screen, like George Janko who created multi-million loops on Vine with Logan Paul.
For more information on this topic, check out the marketplace research 18 Hubs has produced in collaboration with UCLA’s School of Theater, Film, and Television and USC’s Annenberg Innovation Lab — all available on the 18 Hubs website.
Our report “The Power of IP: New Developments in Advertising” expands on what we discuss here by demonstrating the value in building a synergistic, multi-vertical structure of influencers.
