Google recently announced that is has acquired FameBit, a platform for influencer marketing of branded content, in an effort to continuously increase its monetary revenue for creators.
Over the past decade, there has been a steadily rise in the amount of content creation through platforms such as YouTube and Instagram. In addition to making these videos for fun, online influencers have also garnered a way to profit from advertising deals with high end and up and coming companies. Nine years ago, YouTube released its Partner Program, which allowed content creators the ability to gain revenue through distribution on the website. But many had complained of the almost 45% share that was being taken away from them, so YouTube launched ways in which brands and creators could interact independently to produce monetary achievements. This not only increases revenue, it also allows creators full range in which brands they subsequently work for. Companies such as FameBit make it easier to connect both parties together, without disrupting their flow of creation.
If you have watched any sort of famous YouTuber over the past few years, you might notice certain brands being mentioned, or show on screen. Audible for example, which is an online audiobook service, can be see in almost every popular YouTube star’s videos, with special offers if you use their code word for purchase. And every time the brand is mentioned, and people go to their page, the YouTuber gets paid a certain amount of money. While it may be a bit tedious to cold calling and seek out sponsors for content, businesses like FameBit allow a direct connection between content creators and branded companies. Digital producers who have more than 5,000 subscribers are able to participate in the service, with opportunities to expand and grow, which would mean a substantially increasing revenue flow. YouTube Vice President, Ariel Bardin stated “Creators will always have the choice in how they work with brands…Our hope is that FameBit’s democratized marketplace will allow creators of all sizes to directly connect with brands, as well as provide a great technology solution for companies…to find matches for their creators and brand partners.”
FameBit is currently working with a total of 46,144 creators who span a massive 3.4 billion viewership across multiple platforms. With this amount of support, content creators will likely see a tremendous increase in their take home pay, as well as branded content sponsorship. Bardin goes on to say, “We believe that Google’s relationship with brands and YouTube’s partnerships with creators, combined with FameBit’s technology and expertise, will help increase the number of branded content opportunities available, bringing even more revenue into the online video community.” Over the last year, video advertisement has risen by 50%, inciting that more and more companies are looking to brand their content through this digital means.
FameBit currently works with large companies such as Sony, Conair, Adidas, Canon, and Activion, while reaching over 25,000 branded content videos. Although Google has currently owns them, FameBit will remain as a standalone company for the time being.