{"id":3215,"date":"2017-02-02T14:16:36","date_gmt":"2017-02-02T19:16:36","guid":{"rendered":"https:\/\/digital.hbs.edu\/platform-digit\/submission\/stay-famous-with-famebit-disrupting-influencer-marketing\/"},"modified":"2017-02-02T19:34:04","modified_gmt":"2017-02-03T00:34:04","slug":"stay-famous-with-famebit-a-self-serve-marketplace-for-creators-and-brands","status":"publish","type":"hck-submission","link":"https:\/\/d3.harvard.edu\/platform-digit\/submission\/stay-famous-with-famebit-a-self-serve-marketplace-for-creators-and-brands\/","title":{"rendered":"\u201cStay Famous\u201d with FameBit: A Self-Serve Marketplace for Creators and Brands"},"content":{"rendered":"<p><strong>Influencer Marketing<\/strong><\/p>\n<p>Think about the last time you sat down to watch your favorite show and actually paid attention to every ad. If your answer to this was many years ago or never, you\u2019re in good company! Consumers want content that entertains and informs and as a result, brands and companies have had to get more creative with their marketing strategy. Celebrity endorsements, which attach the fame of a star to a brand or product, have long been popular; however, influencer marketing, which creates word-of-mouth advertising using individuals that are trusted in certain circles, is on the rise. According to Musefind, 92% of consumers trust an influencer more than an advertisement or traditional celebrity endorsement (i).<\/p>\n<p><strong>FameBit<\/strong><\/p>\n<p><a href=\"https:\/\/d3.harvard.edu\/platform-digit\/wp-content\/uploads\/sites\/2\/2017\/02\/FameBit-Features.png\"><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-medium wp-image-3603\" src=\"https:\/\/d3.harvard.edu\/platform-digit\/wp-content\/uploads\/sites\/2\/2017\/02\/FameBit-Features-300x224.png\" alt=\"\" width=\"300\" height=\"224\" srcset=\"https:\/\/d3.harvard.edu\/platform-digit\/wp-content\/uploads\/sites\/2\/2017\/02\/FameBit-Features-300x224.png 300w, https:\/\/d3.harvard.edu\/platform-digit\/wp-content\/uploads\/sites\/2\/2017\/02\/FameBit-Features-768x574.png 768w, https:\/\/d3.harvard.edu\/platform-digit\/wp-content\/uploads\/sites\/2\/2017\/02\/FameBit-Features-600x448.png 600w, https:\/\/d3.harvard.edu\/platform-digit\/wp-content\/uploads\/sites\/2\/2017\/02\/FameBit-Features.png 893w\" sizes=\"auto, (max-width: 300px) 100vw, 300px\" \/><\/a><\/p>\n<p>Founded in 2013, FameBit is an online platform originally designed to connect small and mid-sized brands to mid-tier YouTube stars with 50,000-500,000 subscribers, often in very niche demographics (ii). The way it works is that brands post campaign ideas or products they would like to market on the website and creators registered with FameBit then bid on the projects and submit ideas for how they might execute the campaigns. These brands pay their selected creators anywhere from one hundred to tens of thousands of dollars for sponsorship and paid promotion in the form of ads, viral videos, and product placement within adjacent content. This self-serve, two-sided marketplace has benefits for both brands and creators that are outlined below.<\/p>\n<p><strong>Value Creation<\/strong><\/p>\n<p><a href=\"https:\/\/d3.harvard.edu\/platform-digit\/wp-content\/uploads\/sites\/2\/2017\/02\/pic3.png\"><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-medium wp-image-3602\" src=\"https:\/\/d3.harvard.edu\/platform-digit\/wp-content\/uploads\/sites\/2\/2017\/02\/pic3-300x173.png\" alt=\"\" width=\"300\" height=\"173\" srcset=\"https:\/\/d3.harvard.edu\/platform-digit\/wp-content\/uploads\/sites\/2\/2017\/02\/pic3-300x173.png 300w, https:\/\/d3.harvard.edu\/platform-digit\/wp-content\/uploads\/sites\/2\/2017\/02\/pic3-768x444.png 768w, https:\/\/d3.harvard.edu\/platform-digit\/wp-content\/uploads\/sites\/2\/2017\/02\/pic3-600x347.png 600w, https:\/\/d3.harvard.edu\/platform-digit\/wp-content\/uploads\/sites\/2\/2017\/02\/pic3.png 1000w\" sizes=\"auto, (max-width: 300px) 100vw, 300px\" \/><\/a><\/p>\n<ul>\n<li>BRANDS\n<ul>\n<li><strong>Targeting<\/strong> \u2013 FameBit provides a database of creators to reach out to, helping smaller brands with lower marketing budgets get access to creators in different spaces. The FameBit creator database is searchable by price, reach, website traffic, and other criteria, allowing for very specific targeting.<\/li>\n<li><strong>Scale<\/strong> \u2013 FameBit\u2019s technology and automated processes make it easier for brands to hire, communicate with, and approve completed content from many creators across different platforms<\/li>\n<li><strong>Variety<\/strong> \u2013 FameBit\u2019s freelance nature gives brands the freedom to work with different individuals for different campaigns rather than being locked into exclusive relationships<\/li>\n<\/ul>\n<\/li>\n<li>CREATORS\n<ul>\n<li><strong>Non-Advertising Revenue <\/strong>\u2013 Most creators cannot survive on what they are paid via AdSense for their views on YouTube and are looking for alternative revenue streams. Earning non-advertising revenue through brand sponsorships and promotion was previously a luxury only available to the biggest stars managed by giant multi-channel networks (MCNs); however, with FameBit, smaller creators with fewer subscribers can still make money with branded content.<\/li>\n<li><strong>Control<\/strong> \u2013 Creators set their own prices and work directly with brands on campaigns that fit with their own audience and personal brand. This creates great content as well as helps them monetize.<\/li>\n<li><strong>Growth <\/strong>&#8211; FameBit has a referral program for creators where points earned for referrals can be redeemed for lighting equipment, microphones, cameras and more in order to produce higher quality content and grow their channels (iii)<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<p><strong>Value Capture<\/strong><\/p>\n<p>FameBit makes money from both brands and creators by taking a 20% commission on all deals. It charges brands a 10% fee when hiring a creator and charges creators a 10% fee upon completion and brand approval of their content (iv).<\/p>\n<p><strong>Google Acquisition<\/strong><\/p>\n<p><a href=\"https:\/\/d3.harvard.edu\/platform-digit\/wp-content\/uploads\/sites\/2\/2017\/02\/famebit-google.jpeg\"><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-medium wp-image-3600\" src=\"https:\/\/d3.harvard.edu\/platform-digit\/wp-content\/uploads\/sites\/2\/2017\/02\/famebit-google-300x90.jpeg\" alt=\"\" width=\"300\" height=\"90\" srcset=\"https:\/\/d3.harvard.edu\/platform-digit\/wp-content\/uploads\/sites\/2\/2017\/02\/famebit-google-300x90.jpeg 300w, https:\/\/d3.harvard.edu\/platform-digit\/wp-content\/uploads\/sites\/2\/2017\/02\/famebit-google-768x232.jpeg 768w, https:\/\/d3.harvard.edu\/platform-digit\/wp-content\/uploads\/sites\/2\/2017\/02\/famebit-google-600x181.jpeg 600w, https:\/\/d3.harvard.edu\/platform-digit\/wp-content\/uploads\/sites\/2\/2017\/02\/famebit-google.jpeg 786w\" sizes=\"auto, (max-width: 300px) 100vw, 300px\" \/><\/a><\/p>\n<p>Google acquired FameBit in October 2016 as part of a strategy to increase YouTube creator loyalty and retention (v). By supporting alternative revenue sources for creators that flow through YouTube, the goal is that more branded content opportunities will become available and bring more revenue into the online video community. Currently FameBit has relationships with 14,418 brands and 55,377 creators hoping to \u201cstay famous\u201d (the company slogan) (vi).<\/p>\n<p>I view FameBit as a winner because its founders focused on two underserved markets: upcoming YouTubers looking for new ways to make money and smaller brands hoping to connect with a younger demographic. I\u2019m impressed by the way the company was able to connect the two groups and make every transaction a true win-win for both parties, as well as how they were able to grow and attract bigger brands like Adidas and Sony. The acquisition is part of a larger trend of YouTube starting to offer services to creators that previously were only offered by MCNs and it will be interesting to see how their \u201cfrenemy\u201d relationship plays out in the complex online video ecosystem.<\/p>\n<p><strong>Sources<\/strong><br \/>\ni. Forbes <a href=\"http:\/\/www.forbes.com\/sites\/deborahweinswig\/2016\/10\/05\/influencers-are-the-new-brands\/#7ffbae427fc5\">http:\/\/www.forbes.com\/sites\/deborahweinswig\/2016\/10\/05\/influencers-are-the-new-brands\/#7ffbae427fc5<\/a><\/p>\n<p>ii. Pando. <a href=\"https:\/\/pando.com\/2014\/06\/24\/famebit-gets-1-5m-to-democratize-sponsored-content-on-youtube-connecting-long-tail-brands-and-creators\/\">https:\/\/pando.com\/2014\/06\/24\/famebit-gets-1-5m-to-democratize-sponsored-content-on-youtube-connecting-long-tail-brands-and-creators\/<\/a><\/p>\n<p>iii. Vlognation. <a href=\"http:\/\/www.vlognation.com\/famebit-interview\/\">http:\/\/www.vlognation.com\/famebit-interview\/<\/a><\/p>\n<p>iv. Famebit. <a href=\"http:\/\/help.famebit.com\/general-faqs\/how-much-does-it-cost-to-use-famebit\">http:\/\/help.famebit.com\/general-faqs\/how-much-does-it-cost-to-use-famebit<\/a><\/p>\n<p>v. TechCrunch.\u00a0<a href=\"https:\/\/techcrunch.com\/2016\/10\/11\/google-acquires-famebit-to-connect-youtube-creators-with-brands\/\">https:\/\/techcrunch.com\/2016\/10\/11\/google-acquires-famebit-to-connect-youtube-creators-with-brands\/<\/a><\/p>\n<p>vi. Famebit.\u00a0\u00a0<a href=\"https:\/\/famebit.com\/\">https:\/\/famebit.com\/<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>How a two-sided marketplace connecting creators and brands democratized sponsored content and got acquired by Google<\/p>\n","protected":false},"author":1159,"featured_media":3242,"comment_status":"open","ping_status":"closed","template":"","categories":[1090,1091,84,1089,88],"class_list":["post-3215","hck-submission","type-hck-submission","status-publish","has-post-thumbnail","hentry","category-brands","category-creators","category-google","category-influencer-marketing","category-youtube"],"connected_submission_link":"https:\/\/d3.harvard.edu\/platform-digit\/assignment\/digital-winners-losers\/","yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.3 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>\u201cStay Famous\u201d with FameBit: A Self-Serve Marketplace for Creators and Brands - Digital Innovation and Transformation<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/d3.harvard.edu\/platform-digit\/submission\/stay-famous-with-famebit-a-self-serve-marketplace-for-creators-and-brands\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"\u201cStay Famous\u201d with FameBit: A Self-Serve Marketplace for Creators and Brands - Digital Innovation and Transformation\" \/>\n<meta property=\"og:description\" content=\"How a two-sided marketplace connecting creators and brands democratized sponsored content and got acquired by Google\" \/>\n<meta property=\"og:url\" content=\"https:\/\/d3.harvard.edu\/platform-digit\/submission\/stay-famous-with-famebit-a-self-serve-marketplace-for-creators-and-brands\/\" \/>\n<meta property=\"og:site_name\" content=\"Digital Innovation and Transformation\" \/>\n<meta property=\"article:modified_time\" content=\"2017-02-03T00:34:04+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/d3.harvard.edu\/platform-digit\/wp-content\/uploads\/sites\/2\/2017\/02\/Famebit-website-front-smaller.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"2713\" \/>\n\t<meta property=\"og:image:height\" content=\"1135\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data1\" content=\"4 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\\\/\\\/d3.harvard.edu\\\/platform-digit\\\/submission\\\/stay-famous-with-famebit-a-self-serve-marketplace-for-creators-and-brands\\\/\",\"url\":\"https:\\\/\\\/d3.harvard.edu\\\/platform-digit\\\/submission\\\/stay-famous-with-famebit-a-self-serve-marketplace-for-creators-and-brands\\\/\",\"name\":\"\u201cStay Famous\u201d with FameBit: A Self-Serve Marketplace for Creators and Brands - Digital Innovation and Transformation\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/d3.harvard.edu\\\/platform-digit\\\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\\\/\\\/d3.harvard.edu\\\/platform-digit\\\/submission\\\/stay-famous-with-famebit-a-self-serve-marketplace-for-creators-and-brands\\\/#primaryimage\"},\"image\":{\"@id\":\"https:\\\/\\\/d3.harvard.edu\\\/platform-digit\\\/submission\\\/stay-famous-with-famebit-a-self-serve-marketplace-for-creators-and-brands\\\/#primaryimage\"},\"thumbnailUrl\":\"https:\\\/\\\/d3.harvard.edu\\\/platform-digit\\\/wp-content\\\/uploads\\\/sites\\\/2\\\/2017\\\/02\\\/Famebit-website-front-smaller.jpg\",\"datePublished\":\"2017-02-02T19:16:36+00:00\",\"dateModified\":\"2017-02-03T00:34:04+00:00\",\"breadcrumb\":{\"@id\":\"https:\\\/\\\/d3.harvard.edu\\\/platform-digit\\\/submission\\\/stay-famous-with-famebit-a-self-serve-marketplace-for-creators-and-brands\\\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\\\/\\\/d3.harvard.edu\\\/platform-digit\\\/submission\\\/stay-famous-with-famebit-a-self-serve-marketplace-for-creators-and-brands\\\/\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\\\/\\\/d3.harvard.edu\\\/platform-digit\\\/submission\\\/stay-famous-with-famebit-a-self-serve-marketplace-for-creators-and-brands\\\/#primaryimage\",\"url\":\"https:\\\/\\\/d3.harvard.edu\\\/platform-digit\\\/wp-content\\\/uploads\\\/sites\\\/2\\\/2017\\\/02\\\/Famebit-website-front-smaller.jpg\",\"contentUrl\":\"https:\\\/\\\/d3.harvard.edu\\\/platform-digit\\\/wp-content\\\/uploads\\\/sites\\\/2\\\/2017\\\/02\\\/Famebit-website-front-smaller.jpg\",\"width\":2713,\"height\":1135},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\\\/\\\/d3.harvard.edu\\\/platform-digit\\\/submission\\\/stay-famous-with-famebit-a-self-serve-marketplace-for-creators-and-brands\\\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\\\/\\\/d3.harvard.edu\\\/platform-digit\\\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Submissions\",\"item\":\"https:\\\/\\\/d3.harvard.edu\\\/platform-digit\\\/submission\\\/\"},{\"@type\":\"ListItem\",\"position\":3,\"name\":\"\u201cStay Famous\u201d with FameBit: A Self-Serve Marketplace for Creators and Brands\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\\\/\\\/d3.harvard.edu\\\/platform-digit\\\/#website\",\"url\":\"https:\\\/\\\/d3.harvard.edu\\\/platform-digit\\\/\",\"name\":\"Digital Innovation and Transformation\",\"description\":\"MBA Student Perspectives\",\"potentialAction\":[{\"@type\":\"性视界Action\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\\\/\\\/d3.harvard.edu\\\/platform-digit\\\/?s={search_term_string}\"},\"query-input\":{\"@type\":\"PropertyValueSpecification\",\"valueRequired\":true,\"valueName\":\"search_term_string\"}}],\"inLanguage\":\"en-US\"}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"\u201cStay Famous\u201d with FameBit: A Self-Serve Marketplace for Creators and Brands - Digital Innovation and Transformation","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/d3.harvard.edu\/platform-digit\/submission\/stay-famous-with-famebit-a-self-serve-marketplace-for-creators-and-brands\/","og_locale":"en_US","og_type":"article","og_title":"\u201cStay Famous\u201d with FameBit: A Self-Serve Marketplace for Creators and Brands - Digital Innovation and Transformation","og_description":"How a two-sided marketplace connecting creators and brands democratized sponsored content and got acquired by Google","og_url":"https:\/\/d3.harvard.edu\/platform-digit\/submission\/stay-famous-with-famebit-a-self-serve-marketplace-for-creators-and-brands\/","og_site_name":"Digital Innovation and Transformation","article_modified_time":"2017-02-03T00:34:04+00:00","og_image":[{"width":2713,"height":1135,"url":"https:\/\/d3.harvard.edu\/platform-digit\/wp-content\/uploads\/sites\/2\/2017\/02\/Famebit-website-front-smaller.jpg","type":"image\/jpeg"}],"twitter_card":"summary_large_image","twitter_misc":{"Est. reading time":"4 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"WebPage","@id":"https:\/\/d3.harvard.edu\/platform-digit\/submission\/stay-famous-with-famebit-a-self-serve-marketplace-for-creators-and-brands\/","url":"https:\/\/d3.harvard.edu\/platform-digit\/submission\/stay-famous-with-famebit-a-self-serve-marketplace-for-creators-and-brands\/","name":"\u201cStay Famous\u201d with FameBit: A Self-Serve Marketplace for Creators and Brands - Digital Innovation and Transformation","isPartOf":{"@id":"https:\/\/d3.harvard.edu\/platform-digit\/#website"},"primaryImageOfPage":{"@id":"https:\/\/d3.harvard.edu\/platform-digit\/submission\/stay-famous-with-famebit-a-self-serve-marketplace-for-creators-and-brands\/#primaryimage"},"image":{"@id":"https:\/\/d3.harvard.edu\/platform-digit\/submission\/stay-famous-with-famebit-a-self-serve-marketplace-for-creators-and-brands\/#primaryimage"},"thumbnailUrl":"https:\/\/d3.harvard.edu\/platform-digit\/wp-content\/uploads\/sites\/2\/2017\/02\/Famebit-website-front-smaller.jpg","datePublished":"2017-02-02T19:16:36+00:00","dateModified":"2017-02-03T00:34:04+00:00","breadcrumb":{"@id":"https:\/\/d3.harvard.edu\/platform-digit\/submission\/stay-famous-with-famebit-a-self-serve-marketplace-for-creators-and-brands\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/d3.harvard.edu\/platform-digit\/submission\/stay-famous-with-famebit-a-self-serve-marketplace-for-creators-and-brands\/"]}]},{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/d3.harvard.edu\/platform-digit\/submission\/stay-famous-with-famebit-a-self-serve-marketplace-for-creators-and-brands\/#primaryimage","url":"https:\/\/d3.harvard.edu\/platform-digit\/wp-content\/uploads\/sites\/2\/2017\/02\/Famebit-website-front-smaller.jpg","contentUrl":"https:\/\/d3.harvard.edu\/platform-digit\/wp-content\/uploads\/sites\/2\/2017\/02\/Famebit-website-front-smaller.jpg","width":2713,"height":1135},{"@type":"BreadcrumbList","@id":"https:\/\/d3.harvard.edu\/platform-digit\/submission\/stay-famous-with-famebit-a-self-serve-marketplace-for-creators-and-brands\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/d3.harvard.edu\/platform-digit\/"},{"@type":"ListItem","position":2,"name":"Submissions","item":"https:\/\/d3.harvard.edu\/platform-digit\/submission\/"},{"@type":"ListItem","position":3,"name":"\u201cStay Famous\u201d with FameBit: A Self-Serve Marketplace for Creators and Brands"}]},{"@type":"WebSite","@id":"https:\/\/d3.harvard.edu\/platform-digit\/#website","url":"https:\/\/d3.harvard.edu\/platform-digit\/","name":"Digital Innovation and Transformation","description":"MBA Student Perspectives","potentialAction":[{"@type":"性视界Action","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/d3.harvard.edu\/platform-digit\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"en-US"}]}},"_links":{"self":[{"href":"https:\/\/d3.harvard.edu\/platform-digit\/wp-json\/wp\/v2\/hck-submission\/3215","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/d3.harvard.edu\/platform-digit\/wp-json\/wp\/v2\/hck-submission"}],"about":[{"href":"https:\/\/d3.harvard.edu\/platform-digit\/wp-json\/wp\/v2\/types\/hck-submission"}],"author":[{"embeddable":true,"href":"https:\/\/d3.harvard.edu\/platform-digit\/wp-json\/wp\/v2\/users\/1159"}],"replies":[{"embeddable":true,"href":"https:\/\/d3.harvard.edu\/platform-digit\/wp-json\/wp\/v2\/comments?post=3215"}],"version-history":[{"count":0,"href":"https:\/\/d3.harvard.edu\/platform-digit\/wp-json\/wp\/v2\/hck-submission\/3215\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/d3.harvard.edu\/platform-digit\/wp-json\/wp\/v2\/media\/3242"}],"wp:attachment":[{"href":"https:\/\/d3.harvard.edu\/platform-digit\/wp-json\/wp\/v2\/media?parent=3215"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/d3.harvard.edu\/platform-digit\/wp-json\/wp\/v2\/categories?post=3215"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}