The influencer marketplace is something to behold. On Instagram alone, the market size, as per a recent Statista report, is estimated as being US$2.3 billion in 2020, which is a significant gain from the $0.7 billion figure from 2017. A Business Insider Intelligence report published last December meanwhile estimates that the market will grow to US$15 billion across all social media platforms by just 2022.
The rise in demand from such marketing has lead to the inevitable – publicly traded companies are now becoming involved. The latest being that of BroadbandTV, operating under BBTV Holdings (TSX: BBTV) whom just this past week announced the pricing of their IPO with the the company aiming to raise $172.4 million through the sale of just 12.4% of the company. While they own one of the largest creator networks currently, they are not to be the only publicly traded firm operating in this niche.
Although BroadbandTV will be the latest to market, they are certainly not the first. Canadian small cap company QYOU Media (TSXV: QYOU) has actually been slugging it out in the space for quite some time, with the company also focused on developing its India-based entertainment platform known as The Q India through the use of influencers and social media stars.
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QYOU’s approach to influencers is actually two-fold. The first method in which influencers are utilized is for its entertainment brand, The Q India. Here, the company utilizes influencers and digital creators to create original content in which it distributes on its platform in the form of both traditional (linear) television, and that of video on demand, as well as “over-the-top” (think Roku) and mobile platforms.
The second method, is that the company utilizes its network of influencers to conduct social media marketing. In this arena, the company will assist its clients with creative strategy, influencer deals, in-house production, media amplification and channel management.
With the influencer marketing division predominantly focused on the US market, the company largely provides marketing services for third party brands. The company traditionally has been primarily engaged with major studios to promote theatrical releases for motion pictures.
With the advent of COVID-19, that has now changed slightly.
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Given the lack of operational theatres, the company has had to slightly refocus on its target market for this influencer marketing. As a result, the company announced this past week that it has begun focusing on a slightly different market for motion pictures. Rather than solely focus on theatrical releases, the company has now found demand for its influencer marketing services in three segments for motion picture markets.
- Theatrical and Premium Video On Demand – Major motion pictures slated to be released directly to consumers at high purchase prices.
- Subscription On Demand – Direct to consumer content that is consumed by platforms such as Netflix, Hulu, HBO, etc.
- Advertiser Video On Demand – Free to consumer offerings that are supported by advertisements on platforms such as Roku, Pluto, Tubi and Peacock.
And with this, the company announced that is has secured US$710,000 in new contracts for influencer marketing services over the course of September and October.
To get a sense of how effective QYOU is at influencer marketing, lets look at a project the company took on earlier this year. As a result of the pandemic, Dreamworks Universal decided to release Trolls World Tour via direct to consumer, rather than taking the theatrical release approach. While unusual for a film of this magnitude, the company was left with little option due to the state of theatres across North America.
The Q influencer team had initially been hired by Dreamworks to promote the theatrical release, but was asked to pivot the campaign as a result of the change in release plans. QYOU worked with 19 influencers for the project, generating over 57 million organic video views and achieving a 17% engagement rate. The custom TikTok channel created for the film also managed to acquire 314,000 subscribers as well.
The end result is that Trols World Tour became the largest direct to video success in history, with the film generating over $100 million in revenue. It also proved just how effective influencer marketing campaigns can be.
Looking forward, QYOU has identified a number of new potential growth areas that can aide in further scaling the influencer marketing division. Opportunities such as media placements, merchandising, talent management, channel management for brands, production services, and original IP development present new avenues for further growth for the firm.
Audiences have changed the way in which they consume their content. Rather than the traditional methods of television, consumers now utilize a number of sources such as YouTube, TikTok, Instagram, and more to obtain their entertainment. From this, valuable opportunities exist for marketing, branding, and more as businesses look to sell their products to the world. Naturally, agencies at the forefront of this trend will ultimately benefit the most.
QYOU Media last traded at $0.065 on the TSX Venture.
FULL DISCLOSURE: QYOU Media is a client of Canacom Group, the parent company of The Deep Dive. The author has been compensated to cover QYOU Media on The Deep Dive, with The Deep Dive having full editorial control. Additionally, the author personally holds shares of the company. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security.
