The rise and impact of influencers has been one of the biggest forces in how the modern online social landscape has evolved in recent times. Now, a company that’s tapping into that influencer juggernaut, and specifically how it is playing out in the world of marketing, is announcing a huge round of funding to keep riding that wave.
Mavrck, which has built a platform for brands and media companies to source and engage with influencers for marketing campaigns, has raised
Alongside this, Stevens notes that the creator economy is “expanding rapidly, as more and more people have turned to content creation as a secondary or primary source of income.” He cites figures from eMarketer that estimated that in 2020, 50 million people identified themselves as “creators”. And if you have a child, you might nod a little wearily in recognition at the results of a Harris Poll last year that found some 30% of children said their ambition was to become a “YouTuber” (only 11% said “astronaut”).
“We want to support this new creative class by connecting them to the world’s enterprise consumer brands, allowing them to turn their passion into a possibility to earn a living,” said Stevens.
The role of a company like Mavrck is not just to connect marketers with influencers, but also to take a pulse on where influencer content is making the greatest impact. Although it’s a very fragmented space — blogs, for example, can still power, especially with certain kinds of products and consumers — when it comes to single platforms with the biggest scale, social apps are still at the top of the heap.
Stevens notes that Instagram remains the most popular platform today for influencer content, helped by the social app’s shift in 2016 to displaying content algorithmically instead of chronologically. But while Instagram still dominates, that is starting to shift. “The Tiktok ‘For You’ Page algorithm appears to be taking market share from Instagram, as we have seen a 400% increase year over year in the number of creators being activated on TikTok by our brand customers,” he said. “If that trend continues, we anticipate TikTok to dominate influencer marketing over the next five years.”
Whichever platform ends up on top, Stevens believes that influencers and influencer marketing are not a flash in the pan, but are here to stay.
“If you think about the last purchase you made, odds are you were influenced or persuaded by what other people say and display online, versus what a brand said to you directly,” he said. “Those other people can be friends, like-minded strangers or creators you choose to follow online. This concept of social proof has become an essential brand building tool for consumer enterprises. In the wake of COVID and the corresponding changes in consumer buying behavior, consumer engagement with creators has increased 70%. As a result, brands are investing more in social proof to not only thrive, but stay relevant and survive.”
That’s enough to influence investors, too.
“At Summit, we have invested across the commerce segment – in both brands and the technologies that support their growth – and we believe strongly in the impact and potential of authentic brand relationships as a means to build value,” said Michael Medici, MD at Summit Partners, in a statement.
“Brands are increasingly seeking to harness the power of the very long tail of content creators to help drive brand awareness and influence purchase activity,” added Sophia Popova, principal at Summit Partners. “Mavrck’s platform is purpose-built to support brands in these efforts. We are delighted to partner with Lyle and the Mavrck team for this next phase of growth.” Both of them have joined the board with this round.
Mavrck, which has built a platform for brands and media companies to source and engage with influencers for marketing campaigns, has raised
Alongside this, Stevens notes that the creator economy is “expanding rapidly, as more and more people have turned to content creation as a secondary or primary source of income.” He cites figures from eMarketer that estimated that in 2020, 50 million people identified themselves as “creators”. And if you have a child, you might nod a little wearily in recognition at the results of a Harris Poll last year that found some 30% of children said their ambition was to become a “YouTuber” (only 11% said “astronaut”).
“We want to support this new creative class by connecting them to the world’s enterprise consumer brands, allowing them to turn their passion into a possibility to earn a living,” said Stevens.
The role of a company like Mavrck is not just to connect marketers with influencers, but also to take a pulse on where influencer content is making the greatest impact. Although it’s a very fragmented space — blogs, for example, can still power, especially with certain kinds of products and consumers — when it comes to single platforms with the biggest scale, social apps are still at the top of the heap.
Stevens notes that Instagram remains the most popular platform today for influencer content, helped by the social app’s shift in 2016 to displaying content algorithmically instead of chronologically. But while Instagram still dominates, that is starting to shift. “The Tiktok ‘For You’ Page algorithm appears to be taking market share from Instagram, as we have seen a 400% increase year over year in the number of creators being activated on TikTok by our brand customers,” he said. “If that trend continues, we anticipate TikTok to dominate influencer marketing over the next five years.”
Whichever platform ends up on top, Stevens believes that influencers and influencer marketing are not a flash in the pan, but are here to stay.
“If you think about the last purchase you made, odds are you were influenced or persuaded by what other people say and display online, versus what a brand said to you directly,” he said. “Those other people can be friends, like-minded strangers or creators you choose to follow online. This concept of social proof has become an essential brand building tool for consumer enterprises. In the wake of COVID and the corresponding changes in consumer buying behavior, consumer engagement with creators has increased 70%. As a result, brands are investing more in social proof to not only thrive, but stay relevant and survive.”
That’s enough to influence investors, too.
“At Summit, we have invested across the commerce segment – in both brands and the technologies that support their growth – and we believe strongly in the impact and potential of authentic brand relationships as a means to build value,” said Michael Medici, MD at Summit Partners, in a statement.
“Brands are increasingly seeking to harness the power of the very long tail of content creators to help drive brand awareness and influence purchase activity,” added Sophia Popova, principal at Summit Partners. “Mavrck’s platform is purpose-built to support brands in these efforts. We are delighted to partner with Lyle and the Mavrck team for this next phase of growth.” Both of them have joined the board with this round.