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Influencers are Earning Billions in the New Creative Economy

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The new study highlights that the huge economic impact is just “tip of the iceberg” with independent creators.

By MediaStreet Staff Writers

So here it is, another study from the USA about the power of the new economy. While it doesn’t feature what Europeans are doing, we can use the information to see just how fast the new creative economy is moving. Put it this way: that horse has bolted.

The new report released by the Re:Create Coalition finds that 14.8 million independent, American creators earned a baseline of almost $6 billion from posting their music, videos, art, crafts and other works online in 2016. The research is only a snapshot of the entire New Creative Economy, analysing just some of the biggest online platforms: Amazon Publishing, eBay, Etsy, Instagram, Shapeways, Tumblr, Twitch, WordPress and YouTube.

Despite the study being conducted in the USA, YouTube’s top earner is British. Daniel Middleton (DanTDM) brought in $16.5 million in 2017 alone. 26-year-old Dan, otherwise known as TheDiamondMinecart, posts daily reviews and gameplay videos plus some other silliness that kids love.

“Before the internet, a creator was forced to rely on traditional gatekeepers like movie studios and the recording industry to be successful. Today, anyone with a creative idea and a wifi signal can be successful and make money on the internet, reaching millions of people around the globe almost instantly,” said Re:Create Executive Director Joshua Lamel. “This analysis is just the tip of the iceberg when it comes to understanding the full economic impact of the New Creative Economy. However, its findings demonstrate that millions of Americans rely on the balanced copyright policies that support internet platforms like YouTube, Instagram and Etsy in order to earn billions of dollars from their creative work.”

Selena Gomez is the number one person on Instagram, with close to 70 million followers, more than any other celebrity.

Said study author Dr. Robert Shapiro, “The development of this multi-million user network and multi-billion dollar ecosystem for independent new creators reflects the power of the internet. Even with these highly conservative estimates, this study demonstrates the economic power of the new creative economy and its enormous potential for continued growth.”

For each platform, only a single component of how users can earn income was studied, due to limited public data and insufficient information. Independent creators earn billions of dollars each year online through website ads, sponsorship/influencer compensation, social media traffic, direct sales and other methods, but this study analysed only one revenue-sharing model per platform.

For the full report is here.

 

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Are you a Tourism Marketer? Here’s What Travellers are Hashtagging the Most

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If you are marketing anything in the tourism game, this is what you need to know.

By MediaStreet Staff Writers

For those that are lucky enough to get away on holiday or go on an extended travel stint, we can predict what actvities you might be doing after a new study has been published by Hotels.com

The company have used a data-crunching bot to track what people are hashtagging the most on their sojourns. More than five million brags globally were analysed using a combination of Tweet data, Instagram posts and travel keywords and destinations mentioned on other social media. So here are the results.

Worldwide travellers are all about the culture: they enjoy musing around museums (300,000 brags), old-town charm (170,000 brags) and a spot of sunshine (130,000 brags), but they can also be found in floating restaurants, erotic museums and night markets.

TOP 10 GLOBAL THEMES

  1. Museum
  2. Rooftop bar
  3. Old Town
  4. Modern Art
  5. Opera
  6. Sunshine
  7. Olympic Games
  8. Cathedral
  9. Gallery
  10. Ballet

This travel bragging trend echoes the findings from the recent Hotels.com Mobile Travel Tracker report, which revealed that one in six travellers search social media before their trip to plan the photos they’ll take. And 56% of people surveyed admit to spending more than an hour a day on their smartphones while on holiday.

While travellers naturally brag about taking in the tourist hotspots and cultural offerings, more people than ever are sharing foodie ‘grams, shopping stories and luxe posts.

#Foodporn
You’re never more than an Insta-scroll away from #FoodPorn and the brag lists are brimming with culinary treats. Cakes in Stockholm and curry in Toronto spice up the brag lists, and New York steak and pizza both made the cut. Perhaps more surprisingly, enchiladas proved twice as popular as modern art in Mexico City, ice cream scooped 10% of all San Francisco brags and Jumbo Kingdom floating restaurant in Hong Kong took second place in the Hong Kong chart with more than 20,000 brags.

Shop ’til you drop
Shopping is a must-do for most travellers. Those visiting Paris brag more about the Rue Vieille du Temple, famous for its boutiques, than Le Louvre! Other top shop-spots included Bal Harbour in Miami, the Harbour City mall in Hong Kong, vintage shops in Melbourne and the stylish Cecile Copenhagen fashion brand made the Danish capital’s top 10.

Five-star luxury
When travellers check into a posh, luxury hotel they naturally want the world to know. The stunning 5-star Ritz Carlton in San Francisco topped the city’s brag list, the Four Seasons in Singapore proved brag-worthy and the Park Hyatt came in at number one in Seoul – most likely for its awe-inspiring rooftop pool.

Scott Ludwig at Hotels.com said, “Bragging about your travel experiences on social media has become the norm – if you didn’t get social kudos out of it, it didn’t happen!”

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Advertising in Fashion Magazines is Dead to us Now

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Now? Fashion brands are meeting with social media influencers directly.

By MediaStreet Staff Writers

Hundreds of NY Fashion Week influencers were invited to a party specifically held to put them in front of brands that want some of the spotlight. The party was held by a company called Influence, which connects brands and influencers. Together, they create social campaigns that expand visibility and engage new audiences for brands. The influencer gets paid, and the brands get to reach audiences that they might not be able to access using other methods. Welcome to the “now” of fashion and brand marketing.

Influence is a sister company to the already-successful operation called Newswire. Newswire currently have an online portal that publishes thousands of press releases every day. Journalists and influencers can go straight to company news, by keyword or subject search. This means that they can get their news directly from the companies, rather than have the interaction brokered through a PR agency. This renders the traditional PR agency almost obsolete.

The way the PR industry is changing is similar to the way that fashion magazines are going. Teen magazines and fashion publications are no longer the huge, powerful entities that brokered deals between brands/fashion houses and their audiences. Now, it is the online fashion influencers who have huge sway with their fans, and brands can contact them directly. This circumvents the hugely expensive fashion magazines, whose circulations are falling dramatically.

As an example, a top YouTube fashion influencer is Chriselle Lim. Her channel is growing at a breakneck pace. Her videos reveal how to transform basic pieces of clothing into stylish apparel. Chriselle has support from global brands such as Target and Estee Lauder.

The change in the way brands and fashion are marketed has been incredibly rapid. Fashion magazines? Pah. Now Facebook, Instagram, Twitter and YouTube are the place to put brand marketing spend.

But back to the party. The event hosted hundreds of NY Fashion Week Influencers at Manhattan’s chic Sixty Soho Hotel. Influencers and brands from across the globe arrived to share in networking and developing opportunities for campaign partnerships that strengthen an Influencer’s channel and widen content reach for brands. The party was also used to promote Influence.com itself. And it worked, because here you are, reading about this new company.

Said Director of Influencer Marketing, Magnolia Sevenler, “Whether you are an influencer or marketer, the Influence by Newswire platform provides a community to build your campaigns.”

According to Sevenler, the platform has been well-received from both marketers and creators for its simplicity and reach. “It’s exciting to see all the positive feedback…as we enter a new era of marketing, where micro-influencers can be rewarded for their passions and brands can reach new untapped audiences.”

The company has plans to expand its network and add additional features to enhance users’ experience. And it is doing this all because the fashion magazine industry is destined for a papery grave. It’s time to move on, people, and bring your marketing spend with you.

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You Might be Paying too Much for ads on Google and Bing

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Before you dish out money to bid for a top-ranked ad position on a search engine, you may want to pause and make sure it’s actually going to pay off.

By MediaStreet Staff Writers

New research out of Binghamton University, State University of New York suggests that instead of just spending to get that top spot, advertisers should be considering other factors as well to ensure they are getting the best results from their sponsored search advertising campaigns.

Sponsored search advertising involves paying search engines, like Google and Bing, to bid for placements on the search results pages for specific keywords and terms. The ads appear in sponsored sections, separate from the organic search results, on those pages.

“The common belief in sponsored search advertising is that you should buy the top ad position to get more clicks, because that will lead to more sales,” said Binghamton University Assistant Professor of Marketing Chang Hee Park. “But the fee for the top position could be larger than the expected sales you’d get off that top position.”

Park, with the help of Binghamton University Professor of Marketing Manoj Agarwal, analysed data collected from a search engine and created a model that can forecast the number of clicks advertisers could expect in sponsored search markets based on four factors:

  • Rank in the sponsored listings
  • Website quality
  • Brand equity
  • Selling proposition

The model gives advertisers a way to quantify the expected clicks they’d get by adjusting these four factors, while also taking into consideration how their competitors are managing these four factors. This could enable advertisers to find a perfect blend of the four factors to ensure they are getting the most out of what they are paying for their ad positions.

It may also indicate that they should be spending more money to bolster their brand or website rather than amplifying their offers in top ad positions.

“Using this model, you may find that paying less for a lower ad position while investing more in improving your website is more effective than spending all of that money strictly on securing top ad positions,” said Agarwal.

This applies especially if your competitor has a poorer-quality website, but is spending more than you on securing top ad positions.

Their model found that poor-quality advertisers that are ranked higher in ad positions drive consumers back to the search results page, leading consumers to then click on advertisers in lower ad positions to find what they are looking for.

In contrast, they also found that a highly-ranked good-quality advertiser results in significantly less clicks for all the advertisers ranked below them.

“It’s more likely that in the top position, all advertisers being equal, you’ll get more clicks. But depending on these four factors, as well as the quality of your competitors, you may find that you’ll get more clicks in the second or the third position,” said Park.

“Conceptually, this is not a new idea, but now the model can help determine this by accounting for multiple factors at play at the same time.”

Advertisers aren’t the only ones who can benefit from this research.

Park and Agarwal’s model found that simply reordering the listed advertisers could result in significant changes in overall click volume (the total number of clicks across all advertisers) for search engines.

“Because they often charge on a pay-per-click model, search engines can now simulate which ordering of advertisers in a sponsored search market results in the most overall clicks and, therefore, most revenue” said Park. “Search engines may want to consider charging advertisers in a way that gives the search engine more flexibility in determining the order in which the ads in sponsored sections are displayed.”

 

 

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Understanding Facebook Emoticons Can Impact How You Advertise on Social Media

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Not all “likes” are equal.

By MediaStreet Staff Writers

While the trusty “like” button is still the most popular way to signal approval for Facebook posts, a computer model may help users and businesses navigate the increasingly complicated way people are expressing how they feel on social media.

In a study, researchers developed a social emotion mining computer model that one day could be used to better predict people’s emotional reactions to Facebook posts, said Jason Zhang, a research assistant in Penn State’s College of Information Sciences and Technology. While Facebook once featured only one official emoticon reaction – the like button – the social media site added five more buttons – love, haha, wow, sad and angry – in early 2016.

“We want to understand the user’s reactions behind these clicks on the emoticons by modelling the problem as the ranking problem – given a Facebook post, can an algorithm predict the right ordering among six emoticons in terms of votes?” said Zhang. “But, what we found out was that existing solutions predict the user’s emotions and their rankings poorly in some times.”

Zhang added that merely counting clicks fails to acknowledge that some emoticons are less likely to be clicked than others, which is called the imbalance issue. For example, users tend to click the like button the most because it signals a positive interaction and it is also the default emoticon on Facebook.

“When we post something on Facebook, our friends tend to click the positive reactions, usually love, haha, or, simply, like, but they’ll seldom click angry,” said Zhang. “And this causes the severe imbalance issue.”

For social media managers and advertisers, who spend billions buying Facebook advertisements each year, this imbalance may skew their analysis on how their content is actually performing on Facebook, said Dongwon Lee, associate professor of information sciences and technology. The new model – which they call robust label ranking, or ROAR – could lead to better analytic packages for social media analysts and researchers.

“A lot of the commercial advertisements on Facebook are driven by likes,” said Lee. “Eventually, if we can predict these emoticons more accurately using six emoticons, we can build a better model that can discern more precise distribution of emotions in the social platforms with only one emoticon – like – such as on Facebook before 2016. This is a step in the direction of creating a model that could tell, for instance, that a Facebook posting made in 2015 with a million likes in fact consists only 80 percent likes and 20 percent angry. If such a precise understanding on social emotions is possible, that may impact how you advertise.”

The researchers used an AI technique called “supervised machine learning” to evaluate their newly-developed solution. In this study, the researchers trained the model using four Facebook post data sets including public posts from ordinary users, the New York Times, the Wall Street Journal and the Washington Post, and showed that their solution significantly outperformed existing solutions. All four sets of data were analysed after Facebook introduced the six emoticons in 2016.

The researchers suggest future research may explore the multiple meanings for liking a post.

“Coming up with right taxonomy for the meanings of like is another step in the research,” said Lee. “When you click on the like button, you could really be signalling several emotions – maybe you agree with it, or you’re adding your support, or you just like it.”

And we as marketers know, the more you understand how your market feels, the better you can tailor your advertising to them.

 

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Small Businesses Use Social Media Instead of a Website, Despite Risks

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A new survey indicates that 1 in 5 small businesses use social media in place of a website. Many assume a website is cost-prohibitive and may not consider the risks of not having one.

By MediaStreet Staff Writers

More than one-third (36%) of small businesses do not have a website, according to the websites section of the fourth annual Small Business Survey conducted by Clutch, a B2B research firm. One in five small businesses (21%) selectively use social media instead of a website in an effort to engage customers.

The survey indicates that small businesses consider cost a bigger concern than the potential repercussions of not having a website.

 

Social media platforms such as Facebook and Instagram attract small businesses by cultivating a highly engaged user base. However, relying solely on social media may be a risky strategy for businesses.

“Whenever you put all of your eggs into someone else’s basket, it’s risky,” said Judd Mercer, Creative Director of Elevated Third, a web development firm. “If Facebook changes their algorithm, there’s nothing you can do.”

Facebook recently announced changes that potentially increase the risk of using social media in place of a website. The social media platform plans to prioritise posts from family and friends over posts from brands.

This new policy may make it more difficult for small businesses to reach their audiences through social media. As a result, websites are expected to regain importance among businesses – as long as cost is not considered an obstacle.

Among small businesses that do not currently have a website, more than half (58%) plan to build one in 2018.

Some Small Businesses Say Website Cost is Prohibitive, But Others Cite Costs of $500 or Less

More than a quarter (26%) of small businesses surveyed say cost is a key factor that prevents them from having a website. However, nearly one-third of small businesses with websites (28%) report spending $500 or less.

Small businesses may not be aware that some web development agencies offer packages that defray costs by dividing website construction into multiple phases or sliding rates for small businesses. “You don’t necessarily need to launch with your first-generation website,” said Vanessa Petersen, Executive Director of Strategy at ArtVersion Interactive Agency, a web design and branding agency based in Chicago. “Maybe just start small.”

Mobile-Friendly Websites Becoming Standard
Businesses that do have websites are moving en mass to mobile friendly ones, the survey found. Over 90% of respondents said their company websites will be optimised for viewing on mobile devices by the end of this year.

In addition to the 81% of company websites that are already optimised for mobile, an additional 13% that say they plan to optimise for mobile in 2018.

Clutch’s 2018 Small Business Survey included 351 small business owners. The small businesses surveyed have between 1 and 500 employees, with 55% indicating that they have 10 or fewer employees.

To read the full report and source the survey data, click here.

 

 

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The Media is Now the Least-Trusted Institution Globally

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So, which citizens trust their media the most? And the least?

By MediaStreet Staff Writers

Let’s start with the USA. The 2018 Edelman Trust Barometer reveals that trust in the U.S. has suffered the largest-ever-recorded drop in the survey’s history among the general population. Trust among the general population fell nine points to 43, placing it in the lower quarter of the 28-country Trust Index. It is now the lowest of the 28 countries surveyed, below Russia and South Africa.

The collapse of trust in the U.S. is driven by a staggering lack of faith in government, which fell 14 points to 33 percent among the general population, and 30 points to 33 percent among the informed public. The remaining institutions of business, media and NGOs also experienced declines of 10 to 20 points. These decreases have all but eliminated last year’s 21-point trust gap between the general population and informed public in the U.S.

“The United States is enduring an unprecedented crisis of trust,” said Richard Edelman, president and CEO of Edelman. “This is the first time that a massive drop in trust has not been linked to a pressing economic issue or catastrophe like the Fukushima nuclear disaster. In fact, it’s the ultimate irony that it’s happening at a time of prosperity, with the stock market and employment rates in the U.S. at record highs. The root cause of this fall is the lack of objective facts and rational discourse.”

Conversely, China finds itself atop the Trust Index for both the general population (74) and the informed public (83). Institutions within China saw significant increases in trust led by government, which jumped eight points to 84 percent among the general population, and three points to 89 percent within the informed public. Joining China at the top of the Trust Index are India, Indonesia, UAE and Singapore.

For the first time media is the least trusted institution globally. In 22 of the 28 countries surveyed it is now distrusted. The demise of confidence in the Fourth Estate is driven primarily by a significant drop in trust in platforms, notably search engines and social media. Sixty-three percent of respondents say they do not know how to tell good journalism from rumour or falsehoods or if a piece of news was produced by a respected media organisation. The lack of faith in media has also led to an inability to identify the truth (59 percent), trust government leaders (56 percent) and trust business (42 percent).

This year saw a revival of faith in experts and decline in peers. Technical (63 percent) and academic (61 percent) experts distanced themselves as the most credible spokesperson from “a person like yourself,” which dropped six points to an all-time low of 54 percent.

“In a world where facts are under siege, credentialed sources are proving more important than ever,” said Stephen Kehoe, Global chair, Reputation. “There are credibility problems for both platforms and sources. People’s trust in them is collapsing, leaving a vacuum and an opportunity for bona fide experts to fill.”

Business is now expected to be an agent of change. The employer is the new safe house in global governance, with 72 percent of respondents saying that they trust their own company. And 64 percent believe a company can take actions that both increase profits and improve economic and social conditions in the community where it operates.

This past year saw CEO credibility rise sharply by seven points to 44 percent after a number of high-profile business leaders voiced their positions on the issues of the day. Nearly two-thirds of respondents say they want CEOs to take the lead on policy change instead of waiting for government, which now ranks significantly below business in trust in 20 markets. This show of faith comes with new expectations; building trust (69 percent) is now the No. 1 job for CEOs, surpassing producing high-quality products and services (68 percent).

“Silence is a tax on the truth,” said Edelman. “Trust is only going to be regained when the truth moves back to centre stage. Institutions must answer the public’s call for providing factually accurate, timely information and joining the public debate. Media cannot do it alone because of political and financial constraints. Every institution must contribute to the education of the populace.”

Other key findings from the 2018 Edelman Trust Barometer include:

  • Technology (75 percent) remains the most trusted industry sector followed by Education (70 percent), professional services (68 percent) and transportation (67 percent). Financial services (54 percent) was once again the least trusted sector along with consumer packaged goods (60 percent) and automotive (62 percent).
  • Companies headquartered in Canada (68 percent), Switzerland (66 percent), Sweden (65 percent) and Australia (63 percent) are most trusted. The least trusted country brands are Mexico (32 percent), India (32 percent), Brazil (34 percent) and China (36 percent). Trust in brand U.S. (50 percent) dropped five points, the biggest decline of the countries surveyed.
  • Nearly seven in 10 respondents worry about fake news and false information being used as a weapon.
  • Exactly half of those surveyed indicate that they interact with mainstream media less than once a week, while 25 percent said they read no media at all because it is too upsetting. And the majority of respondents believe that news organizations are overly focused on attracting large audiences (66 percent), breaking news (65 percent) and politics (59 percent).

It’s a brave new world, and we as marketers must realise that placing any marketing cash with distrusted media outlets could mean a very big waste of our advertising spending power.

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YouTube Will Use Human, Technological Methods To Vet Premium Ad Tier Google Preferred

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By Sam Gutelle.

At several points in 2017, major brands suspended ad campaigns on YouTube because they could not be assured that their spots would run next to brand-appropriate videos. As it looks to improve its relationship with those brands, YouTube is reportedly taking steps to ensure its premium ad tier remains a worthwhile buy. As shared by Bloomberg, YouTube will use both human and technological moderation to vet the channels it includes in its Google Preferred package.

Google Preferred, first launched in 2014, ropes off ad space on YouTube’s top channels, which is reserved for advertisers that enter into the Preferred program. In theory, this is a win for both creators, who get to reap the benefits of strong ad rates, and brands, who can ensure that their YouTube media buys connect to strong, engaged audiences.

For a while, Preferred worked as planned. In November 2017, however, some customers griped that Google Preferred wasn’t delivering the level of brand safety YouTube had promised.

Now, YouTube is responding to those complaints. A day after it removed Logan Paul from its Preferred lineup in response to the embattled star’s “suicide forest” video, it vowed to do right by its most valuable brand partners.

“We built Google Preferred to help our customers easily reach YouTube’s most passionate audiences and we’ve seen strong traction in the last year with a record number of brands,” reads a statement from a Google spokeswoman. “As we said recently, we are discussing and seeking feedback from our brand partners on ways to offer them even more assurances for what they buy in the Upfronts.”

YouTube’s promise to clean up Preferred is in line with the initiatives it has taken across its platform. It is planning to hire 10,000 humans to review questionable content, and it is improving its technological processes to ensure they catch the right types of inappropriate videos. Those steps can likely help YouTube restore advertisers faith in Preferred as well.

By Sam Gutelle

Sourced from tubefilter

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YouTube Says 70% Of All Watch Time Is Driven By Its Own Recommendations

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By Geoff Weiss

At the International Consumer Electronics Show (CES), YouTube’s chief product officer, Neal Mohan, announced that a staggering majority of watch time on the platform — to the tune of 70% — is driven not by user search, but by the company’s own masterful recommendations, which are powered by artificial intelligence and machine learning.

And the fact that YouTube is so good at suggesting videos — which is no small feat given that 400 hours of content are uploaded to the site every minute — has resulted in longer watch times, said Mohan (pictured above). Today, the average viewing session on a mobile device lasts more than an hour.

“We focused a lot in the last several years on machine learning and artificial intelligence to learn what our users like and make,” Mohan said, per CNET, at the Las Vegas tech conference. “Our job is to give a steady stream — almost a synthetic or personalized channel.”

By Geoff Weiss

Sourced from tubefilter

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What We Can Learn from a YouTube Influencer Goddess

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This is how you do it. Watch and learn, people.

By Nicole Buckler

How do you make yourself a global sensation without having to get the approval of media chiefs of any industry or sit on every casting couch going? You do it yourself. And if you do it well, fans will come. Self-made beauty and lifestyle star Wengie is a perfect example of this. She is smashing it on just about every piece of internet real estate.

Wengie is an international YouTube sensation, and she is the #1 most subscribed channel in Australia, hitting 10 million subscribers in 2017. But it is not only in her native Australia that she is smashing it. With over 700 million video views, Wengie’s global fan base of ‘Wengiecorns’ continues its unprecedented growth. Wengie started her YouTube channel in 2010, to express her passion for truly fluffy videos that give viewers helpful advice, DIY/life hacks, music, reactions and more. The videos have become immensely popular around the world, in places like the UK, and the United States. And of course, here in Ireland.

Anyone with tween daughters knows just how much influence this unicorn in human form has. Born in China, but brought to Australia as an infant, Wengie could recommend anything from a rubbish bin to a doormat and tweens MUST HAVE IT.

Wengie’s global social media following is currently:

  • 10 million YouTube subscribers
  • 1 million Instagram followers
  • 251k Facebook likes
  • 169k followers on Twitter

These are stats that mainstream media channels can only dream of.

Wengie is not stopping at influencer smashing. She is using it as a stepping stone for global domination. Her music and television career have already gained a substantial audience. In 2017, Wengie recorded her first music album in China. And we all know how big the Chinese market is. She is also currently involved in several on-screen projects including being the voice of the 4th PowerPuff Girl (Bliss) on the Cartoon Network. And the thing to remember here is that she has done this all herself, starting with just a computer in her bedroom. What this means is that ANYBODY can do this. ANYONE. Even you.

The Wengie phenomenon is also interesting for marketers. Placing your product with someone like Wengie is a good bet. Her fans love her and she’s entirely unlikely to get herself involved in any scandals or end up in jail with cocaine all over her face. She is a compelling competitor to any other marketing channel, especially if you are selling anything aimed at tweens and teens. Her growing celebrity status has already made her a very much sought-after collaborator for both high-profile and emerging global brands.

The reason for her popularity is that she understands tween and teen girls perfectly. She knows what they need to relax and switch off from their day on the school battlefront. She’s happy, she’s bright, everything is fluffy, and it’s all rainbows. It is devoid of politics, there’s no lecturing, there’s no drama. Just smiley, cutsie, happy hints and tips, in short ten-minute bursts of fragrant goodness. It’s all good. And, she is a sponsors’ dream.

Go the Wengiecorns.

 

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