How YouTube and Instagram stars are adapting their businesses as the coronavirus impacts the influencer-marketing industry
Welcome to this week's Influencer Dashboard newsletter!
This is Amanda Perelli, writing to you from my desk at home, and here's an update on what's new in the business of influencers and creators.
First off, I'm lucky enough to be able to work from home, and I hope all of you are healthy and staying safe!
This week, my colleague Dan Whateley and I caught up with several creators across YouTube and Instagram, along with industry experts, on how they are adjusting their businesses to continue to make a living during the coronavirus pandemic and the resulting economic turmoil.
As many brand deals stall, influencers are starting to switch up their strategies, focusing on long-term bets like direct-to-consumer businesses or alternative revenue streams like consulting, teaching, and coaching.
"Our entire company is at a standstill at the moment and I don't really know when jobs or campaigns will happen again in the next month," said Audree Kate Lopez, a fashion stylist, consultant, and influencer with nearly 30,000 followers on Instagram.
Lopez said during this downtime she is focusing on getting organized internally and creating content at home that she normally doesn't have time to do.
And the influencer-marketing firm Sapphire Apps told Dan that it's no longer conducting photo shoots with influencers for brand campaigns, instead turning to animation and user-generated content filmed by influencers at home that's then edited by the Sapphire team afterwards. (Read the full post here.)
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More industry updates on the impact of the coronavirus pandemic:
Influencer marketers say sponsored Instagram posts have had views, likes, and comments sharply increase the past 2 weeks: Dan spoke to the influencer-marketing agency Obviously, which said it had seen a 76% boost in the number of "likes" on sponsored posts on Instagram in the past two weeks despite some advertisers cutting budgets.
Coronavirus is 'impacting all talent' on Instagram as brands cancel influencer-marketing deals and paid events get put on hold: I spoke to several bloggers, travel influencers, and industry experts about the impact of the coronavirus on the influencer industry and their brand deals.
The price of sponsored posts on platforms like Instagram could fall by up to 25% in the near term, according to an influencer-marketing agency: Dan covered a new report from the influencer-marketing platform Izea, which said the company expected the average price for a sponsored post on social media to drop between 15% and 25% in the near term.
An influencer-marketing agency made a 68-page deck on how the coronavirus pandemic could change the industry. Here are the 5 key takeaways: Also from Izea, I wrote about the main points of its recent report on the impact the coronavirus could have on the influencer industry.
Esports broadcasts have quickly adapted as sports leagues have shut down, but online-only competitions present challenges for pro gaming: My colleague Kevin Webb wrote about the impact the coronavirus pandemic has had on esports, from the challenges to the opportunities.
FaZe Clan's top recruiters explain how to join the red-hot gaming organization and what they look for in new members
FaZe Clan is a multimillion-dollar gaming organization focused on esports and video content creation.
Kevin spoke to Vera Salamone, FaZe Clan's director of talent, and Erik Anderson, FaZe Clan's head of esports, on what FaZe Clan looks for in new recruits.
Anderson said FaZe is constantly recruiting on a global scale to find the best players to represent the team.
"I don't want to have to call a guy to wake him up to get him to and play video games as his career," Anderson said. "I want someone that's hungry to go and compete at a high level and understands that they're in a really amazing place to do that."
Read the full post on how to join FaZe Clan, here.
Inside YouTube's secretive Google Preferred program, which can boost a creator's income and signal they've 'made it'
For a YouTube creator, joining "Google Preferred" - the company's top-tier monetization category - means you've made it.
Dan spoke to creators like Remi Cruz, a YouTube star who posts DIYs, cooking tutorials, and makeup and fashion videos for her 2.5 million subscribers, and other individuals familiar with how Google Preferred works to learn more about the company's secretive program.
Google Preferred videos tend to make more money because they command higher CPMs (cost per thousand views) than YouTube's standard AdSense (biddable pre-roll, mid-roll, and post-roll) monetization, according to multiple sources who spoke to Business Insider.
"In the beginning with Google Preferred, it definitely boosted [revenue]," Cruz noted. "But since then I think it's been climbing depending on the quarter that I'm in."
But how do you get into the program? Dan has the inside details.
Read the full post to learn more about the Google Preferred program, here.
The TikTok metrics that matter for a successful sponsorship deal between an influencer and a brand, according to industry insiders
TikTok has become one of the most popular apps among Gen Zers and brands are looking to leverage the massive reach its creators have.
I spoke with an influencer talent manager and a digital agent about some of the metrics they see brands paying attention to in 2020 on TikTok.
"On TikTok, it doesn't matter how many followers you have, that's not the main metric of success," said David White, head of influencer management at Whalar Stars. "It's all about how many views you're getting."
From a branding perspective, TikTok is good for its volume of impressions and reach, and Instagram is the place to drive sales, said Alex Devlin from WME.
Read the full post on the TikTok metrics brands are paying attention to, here.
What else happened on BI Prime this week:
The 12 investors betting millions on the Call of Duty League - from the LA Rams owners to a group including Gary Vaynerchuk: Kevin created a list of everyone who's invested millions to be part of the Call of Duty League's first season.
The FTC provided specific guidelines on what influencers should and shouldn't do for sponsored posts in its recent $1 million settlement with a marketer: Dan highlighted some key takeaways for influencers looking to avoid the ire of the FTC based on the agency's settlement with Teami.
Here's what else we're reading:
We Live in Zoom Now: Zoom is where we work, go to school and party these days: Taylor Lorenz, Erin Griffith, and Mike Isaac from The New York Times wrote that overnight, the video conferencing platform, Zoom, has become a primary social platform for many high school and college students, as those institutions move to online learning.
Big 'gram on campus: At USC, students train to become influencers: Kalhan Rosenblatt from NBC wrote about USC's social media influencing curriculum and clubs, where content creation is more than just a hobby.
YouTube will slowly start monetizing coronavirus videos following creator anger: Julia Alexander from The Verge reported that YouTube was reassessing its policies in an effort to let some creators monetize videos they make about the coronavirus.
ICM Signs Digital Management Firm TalentX (Exclusive): Natalie Jarvey from The Hollywood Reporter wrote that talent management firm TalentX has signed with ICM Partners, bringing its 32 clients under the agency's fold.
The most popular TikToker is on track to lose her throne, and she's looking to Taylor Swift and Shawn Mendes for the next leg of her career: Kat Tenbarge from Insider spoke to 17-year-old Loren Gray, who is the most followed person on TikTok.
Meet David Dobrik, Gen Z's Jimmy Fallon: Myles Tanzer from The Wall Street Journal wrote about YouTube star David Dobrik and his big dream to be a late-night host.
Thanks for reading! Send me your tips, comments, or questions: aperelli@businessinsider.com.
