Well, we all know Tick Tock is something that’s in play up for sale or by enough time you see this maybe has been sold.
But the big picture is what does that mean about its utility and value to brands?
Yes, this is where we’re going here.
We all look at the users on Tick Tock, those that post those that watch.
But all these forms of platforms switch on their value to brands when you get right down to it.
So when something is in such dramatic play as Tick tock, we have to ask now what?
Nigel Morris may have a lot of insights into this.
He recently ended a lifetime career of 26 years at Dentsu ages one of the largest media and marketing agencies in the world.
And now he is an independent investor.
Among his investments is an organization called Fan Bites in britain, helping brands win the hearts of Gen Z on social is their self description.
So that he watches TikTok and other platforms well and with a background, That goes real deep in where the rubber hits the street.
Nigel, as you see, tiktok in play when you initially heard that it was potentially offered regardless of the politics behind that, which kind of mystified me.
What was your first reaction?
Well, the the first reaction was.
This is this is political.
The second reaction was, what does it mean to the business particularly with my fan bites hat on and tick dogs been fantastically successful for us really over the last 1 . 5 years.
And simply to give you some some idea about 1 . 5 years ago, over 50% of the revenue.
Flowing through Fran bytes actually was it was running right through snap.
And now well over 50% is running through tik tok.
That’s a huge shift.
And that shift has been really, Down the usership but also brands really engaging and understanding actually Tick Tock is where teenagers, especially Gen Z really would like it to be.
What do brands do well once they engage with Gen Z particularly, on Tick Tock.
The number 1 thing about using any form of social, but particularly something as personal as tik tok is is the authenticity.
Brands really surely got to to understand the influences and understand and engage with them through their brand.
Right But the authenticity of the brand and its relevance to that consumer has to be real Because if it isn’t, they’ll split among a million miles off.
So actually using, you realize, an agency like fan base is a great example where they’ve a network of influences.
Those, those net network of influences grown up in the platform.
They have their users and actually.
Engaging properly with them to not really just kind of try and hit them and go underneath their audience.-
But to really have the audience at once.
So, you realize and actually becomes the ability for the influencer to be able to state no to the brand.
Is actually very critical to the brand to essentially engage and understand why that is.
I am aware everything is a data science nowadays, but this is really an art, isn’t it?
Well, it’s art and science, because you need to understand that audience.
You need to understand how the network works.
And, obviously, you have to comprehend the performance that uses.
And the issue with data science sometimes is it does not have the calibration of the art and the art of strategy.
And I do believe too many people understood probably two or three years back especially as influence really took off Is that they were being manipulated.
And really, it’s, you realize if you brand to really flourish in an influencer environment now, it really needs a traditional endorsement of it and the influences are incredibly sensitive for their credibility.
And their credibility being negatively impacted by supporting a brand they do not really have confidence in because again, the user notice almost instantly.
Platforms and influencers aren’t a new formula.
This is maybe the third or fourth major iteration with this era.
And I fully grasp this sense of perishability relatively limited shelf life of any given influencer or any given platform.
Is that and on the other hand, I will look at Twitter or Facebook, that i know are, old hat and have hair growing in it now, and they are very stable and long haul.
What you think about the proven fact that tic tocs a perishable and there is another one arriving a year 1 . 5 years?
What is the utility and when you really think The platforms that have survived, especially the social platforms that have survived, it’s simply because they have a core utility that accumulated an asset for consumers that they didn’t desire to let go.
So obviously the connectivity of Facebook
Is his real stickiness and simply because they actually got the scale first, again, there’s that there is the inertia of, I’m on, right?
I’ve got all my connection with all my you know my fundamental utility of being in a position to connect to all my relatives and buddies around the world instantly.
That stays and lots of people say they have doubtful about whether they desire to stay on Facebook but they will because a utility Astro.
The utility of the utility of tik tok was that expression The young people suddenly found in regards to the ability to create a video and express themselves creatively through video.
And then very, quickly build up actually their own media channel and in increasingly their own business on, Very very, quickly, that fundamental behaviour, right, I think has actually taken grip.
Now with it transformed to a new platform it could do and the interesting thing for a potential buyer of TikTok is As is there enough inertia?
Is there enough utility within it as a specific platform to keep users that as you look at a few of your influencers on fan bites that you connect with brands, any one of these may have created short videos in the past.
That’s not hard, could have had their very own channel.
And that’s their brand that isn’t hard, may have distributed it and amplified it on other social platforms.
So what’s new about Tick Tock?
I know it’s a major thing but I’ve a hard time getting my fingers on what’s actually new about it as opposed to what’s fresh about it.
Young people saw it their media.
In the same way that with snap, it’s really interesting.
I mean, I’ve an 18 and 20 year old and you remember when snap, ordered their algorithm and use it so yeah to be advertiser friendly.
I remember entering the den when there have been about 1016 year olds.
I have never experienced really never experienced the height.
And it really was, they’ve screwed my media.
But it was and you could tell them they’d lost it.
And finished . about TikTok isn’t a media and was not a media shared by parents.
It wasn’t shared by other generation.
This was my media.
I am aware how to use it and it became like a private club not to mention as then a business starts to scale.
It broadens out, but it also deepened.
Now the interesting thing is, which is why actually you’re You’re right is that so many of those media become sometimes ephemeral, because actually a brand new platform, there’ll be a certain number of people who’ll really stick with Tick Tock the capability for Tick Tock to really expanded that.
The interesting thing is perhaps the sale Actually cuts up of their capability to do that.
What makes a fantastic influencer?
You know, you guys have this bank of them at Fanbytes and you also connect them with the proper brands and do all that you do but, boy, influencers seem like a thing that is a little like capturing lightning in a bottle.
I originated in a the air industry several years ago and, You never knew who was simply going to be described as a hit on the air on confirmed station.
at a given time.
It was a lot of learning from your errors and then when it works, everyone takes credit for it but nobody can definitely explain it.
Is it still similar this way?>> This is really democratised media.
In the sense that is not curated, it really is bottom up is that the users really choose.
I do believe what makes a fantastic, [UNKNOWN] myself to death of saying the authenticity because I do believe that it’s true.
But actually having the ability to capture [UNKNOWN], actually having the ability to really genuinely go on on and communicate in that audiences language particularly On tik tok when it was very, very pure as a Gen Z even young Gen Z audience to be able to essentially connect with them.
After all, all of us look at a few of the content on the website that gets millions and millions and millions of views and you just go you can not understand why.
[LAUGH] The same way Was after remember it?
Everyone dismiss YouTube?
Is just for cats.
Of course it isn’t.
The other thing that i think is really interesting about Tick Tock was the purity of the user experience, the peak and actually the creator experience is actually a very pure one rather than really.
That in other words the commercial model didn’t interfere too much with that.
As the business has started to expand, as that commercial so that as the influence model really is removed in within TikTok.
That is why I keep utilising the word authenticity, because the ability of the Influences the creators to create brands to the experience that they are that they’re creating in another way to their audience, keeping their audience That enables them to monetize just because a lot of these obviously influences are building their own organizations on these platforms.
That’s that’s this is where the art comes in.
These guys are extremely, very smart as well as being very creative.
I think the the current generation of influencers like you guys deal with there at.
At fan bites, they’re from the bottom up savvy about that, which across the media industry even now in 2020 we’re still trying to retrofit that awareness into countless media individuals who let’s face it are over 30 or even over 25.
Well, that is correct.
And because that After all, the fan bites founders when I first started working with them, we’re very early 20s and like founded that business and, and I always want to refer to them is they are they’re not really a team of Gen Z experts.
They are Gen Z who’re experts in influencer marketing.
Yeah, key distinction.
They are actually the audience among the things we haven’t reached is the audience Vince is looking very closely as of this issue around Tick Tock in the sale and who he gets sold to.
Will it be described as a credible buyer when to be always a credible buyer?
Will it be described as a new parent that they trust, don’t trust.
They are actually, really taking a look at that.
And of course, how that the way the person who acquires and spends that money treats the platform to treats the audience.
That’s going to be that is going to be real determinant of whether it’s successful or perhaps not.
Let me be a lot more to the point along that line if and I may be dating our segment now but if Microsoft or Walmart or some combination quired Tik Tok isn’t that overnight The beginning of the end.
I mean, that will be a huge story reverberating everywhere, even though they did nothing to it and didn’t even touch it in any visible way.
Just the awareness that it’s owned by some big, decades old, mainstream tech behemoths or retailing behemoth when that just change the game over night and send people trying to find the next big thing.
Quite possibly, yes.
I mean, I do believe it’s definitely buyer beware, you need to be really rare that you’d have to factor that in and let’s face it.
The past is littered with businesses that did, Does that mean you are able to argue, you realize, might buy space and news?
Yeah, you know, even and which was an even closer fit.
Because the other thing I want to do want to talk about is that people should take into consideration what is happening with COVID.
And what’s happened to and what is likely to happen.
But to utilize mass youth unemployment, you should definitely both sides of the pond.
Almost everywhere is the actually you’re gonna see a straight bigger mushrooming a bit of teenagers forming their very own businesses and forming their very own businesses on different platforms, because they are going to have to because there are not going to be.
The jobs out there to allow them to take.
So already what we’re beginning to see is people really starting to think about Wow, okay, well, how do I develop a business to take your you.
You’re present, where do I build that business?
Which platforms will probably be there in the long run?
Which ones are more credibility?
Am I right?
Should I be building that on Instagram?
Should I be as my core?
Should I be building on tik tok?
Should I be building on YouTube?
Those are decisions that people are taking, because what they truly are really beginning to see now.
And they’re only starting to feel it, is actually the reality is that 50%, 40, 50% of an entire generation are probably perhaps not gonna have a job for the next 2 Two years.
And that also generally seems to change the character or one definition of influencer from the person who is available to promote another brand, to someone who in a very survival sense has to create and promote their very own brand.
Yes, 100 that’s already happening is that the influence is getting increasingly powerful in the same manner that you sort of said, you know, Are they Ephemeral?
They’re here one day and gone.
They kind of are, is that the market is quite fluid.
It’s similar to it’s similar to a singles market when compared to a, an album.
But it greatly is that but actually the growth of influence overall He’s pretty inexorable at the moment.
And I do believe that point is that, that’s gonna become an economic necessity for many people.
We’ve been speaking with Nigel Morris, former CEO of Dentsu Ages, now, an investor whose plays include fan bites UK, which is a platform that takes major advantageous asset of Tiktoks and good insights.
Well, we all know Tick Tock is something that’s in play up for sale or by enough time you see this maybe has been sold.