With the increase and popularity of new technology, TV viewership has been declining. Viewers, especially Millenials gravitate towards online content (1 in 3 Millenials watch online video). It is more convenient for them to watch their favorite show on Netflix or Hulu. If they want to buy a product and are uneasy about their decision, what do they do? Post a question about it on their social media platform, or watch a review from their favorite Youtuber. Viewers have developed a strong and authentic relationship with these content creators because they were given the freedom to choose.
By doing so, it allows them to choose what, when, and from where they want to view their desired content. It enables them to simultaneously trust and fully enjoy what they’re watching. After a while, influencers start becoming their friends. Thus, viewers are most likely going to listen and follow what their friends say, rather than listening to a coorporate brand. Think about it, who wants to be interrupted during the climax of season 5 finale of Scandal for a new Covergirl mascara commercial? (sorry Gigi Hadid) No one!
Here is when Octoly and other similar companies, such as Famebit come to play. Their whole purpose is to connect brands to content creators (Youtubers) to an audience that no longer watches TV. It’s a win- win for both sides. The company gets basically free promotion and reviews, and Youtubers get stuff for free!
The process is farely simpel. Octoly uploads images of their products, and Youtubers choose the products that they want to review. Somebody from the company reviews the specific request. If the request is approved the product will arrive the next day at the Youtuber’s front door. However, their is still some criteria to be considered to review brand products. For Octoly one has to have at least 1000 subscribers, and 1000 views after 30 days to be even considered. As for Famebit one has to have at least 5000 followers along with having a constant social media presence.
Here’s a short video that explains it even better:
(Isn’t it ironic that they only have 3000 views?)
According to a Forbes article written by Bree Brouwer, “How Influencer Marketplace Octoly Has Generated $8.6 Million In Earned Media Value”, Google has already purchased Famebit. Octoly at the other hand is actually doing a bit better. By the end of 2016 Octoly is planning on breaking the trend of 4800 of product placements or reviews, and trough media value it has produced $8.6 million.
Above are statistics taken from the Forbes article, describing the revenue of Octoly. Our marketing textbooks were right! Thomas Owadenko, CEO of Octoly, states that the company strived due to the “pull method” and not the “push method”. It gave more creativty and free will to the creators, hence making ir more accessible and authentic for the viewers.
So, what do you think the future of brand marketing and advertising will be like?