Insiders Say YouTube Is Shaking Up The Business Model Of Its Influencermarketing Program BrandConnect
- YouTube is updating its BrandConnect marketing program.
- Formerly known as Famebit, the tool connects brands with creators for marketing campaigns.
- It seems to be moving more towards a "self-service" model than a hands-on program.
YouTube appears to be revamping its service that helps creators monetize branded content called BrandConnect, moving toward a more "self-serve" model than the app it's been in place for in recent years.
BrandConnect works as an inbound influencer marketing tool that connects brands with creatives for paid campaigns. The tool formerly known as FameBit was acquired by Google in 2016.
Creative Economy experts first noticed the changes to the service in late 2022, when the BrandConnect team reached out to creators and talent managers with a "special invitation to join BrandConnect's self-service pilot program" that stood out from existing products. . Two emails seen by Insider.
The pilot's registration form reads:
“This new self-service pilot program is an extension of the existing BrandConnect program, which allows content creators to receive branded content offers directly from interested advertisers, follow a simple step-by-step workflow and receive payments all in one place. You'll be able to view offers directly in the YouTube Creator Studio and only accept offers that interest you.
A talent manager told Insider that his YouTube contact said the new self-service model will still have offers, but that prices may be lower than what BrandConnect typically offers as the team experiences slowdowns.
BrandConnect's economics have lost traction for YouTube as the economy begins to weaken, said seven people familiar with the project. Some of those sources spoke on condition of anonymity to protect their ties to YouTube, but Insider knows their identities. What started out as a marketplace, these people said, has evolved into an agency that offers custom services to big brands that need more staff.
The announcements about BrandConnect's new line of work were soon followed by a wave of layoffs from the tech giant that included 12,000 employees in January. As part of the layoffs, the BrandConnect team has been cut, and several people who identified themselves as part of the team posted on LinkedIn that they were fired. Five influential industry insiders said some of the people they worked with on the team have left. Many experts said YouTube is unclear about its future plans for BrandConnect and its team.
"Things are so confusing that it's still hard to know what's here and what's not, especially with the ongoing overseas layoffs," said a current YouTube employee, who spoke on condition of anonymity because he was not authorized to do so. to speak openly. About the company: . . . Their identity is known to Insider.
YouTube did not respond to Insider's multiple requests for comment.
FameBit rebranded as BrandConnect in 2020, and the team has also worked on technologies such as augmented reality tests that allow viewers to make virtual purchases. BrandConnect advertises that creators with more than 25,000 subscribers can sign up for the service in their YouTube studio, but three talent managers said the actual service is essentially invite-only, and that employees will communicate directly with the creative team via email. by mail. possible deal. . .
"It was supposed to be a platform, then it became an agency, and even when it became an agency, it was really just an intermediary between the brand and the creator," said a second source familiar with the show.
Four talent managers who work with creators at YouTube said they like using BrandConnect's services and dealing with bigger brands that are harder to come by.
"Being a big company, they took certain things very seriously. don't take pictures where you don't have permission, don't include other brands without permission, of course don't use copyrighted music, that's it. the strictest law-abiding institution. rules that make sense, but definitely stifle creativity," said the creator, who has more than 1 million followers.
What set BrandConnect apart from other powerful agencies was that the team managed almost everything and transacted directly with clients via email. The two talent managers said the BrandConnect team would routinely offer five-figure deals. Some of the brands using the BrandConnect marketplace include Kimberly-Clark, MorningStar Farms and Hershey's.
"They wouldn't help if they didn't have real, reliable capabilities and always paid above market," said a third source familiar with the plan.
But some experts say YouTube-based acquisitions are beginning to overtake the market.
The ecosystem of the creative economy has changed dramatically since YouTube acquired FameBit in 2016, says Paola Marinone, co-founder and CEO of marketing firm BuzzMyVideos. Many marketers are now looking to more independent independent partners to match creators on other platforms, from Instagram to TikTok to Snapchat, he said.
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