TikTok influencers break down how they make money
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Today’s news: How TikTok influencers make money, AT&T’s marketing cuts, and Amazon slashes marketing spend.
TikTok influencers reveal how they’re making money in 2020 despite the app’s paltry monetization features
- Dan Whateley, Amanda Perelli, and Sydney Bradley looked at seven ways that TikTok influencers make money off of the short-form video app including brand deals, merchandising, and paid song integrations.
- Influencers like Tyler Bott, known as TyBott, has 2.5 million followers and charges $25 per video message sent through video-sharing app Cameo.
- Influencers can also earn money from affiliate marketing programs with commission rates that range between 1% and 20%.
- Tanya Dua reported that AT&T recently laid off 54 New York-based employees in its consumer marketing division. The company said that the layoffs are part of an effort to focus on growth areas and address lower demand for legacy products.
- The marketing cuts come as AT&T embarks on a multi-year strategy to cut as much as $6 billion in costs under new CEO John Stankey.
- AT&T’s marketing department was recently reorganized where the consumer marketing team that was just cut was consolidated with the corporate brand team.
Amazon’s record profits last quarter would’ve been impossible without an accounting change and a huge spending cut. That raises questions about future earnings growth.
- Eugene Kim reported that Amazon saved nearly $2.6 billion in net profits last quarter by cutting its marketing spend and through a previously announced estimate change for its server costs.
- In a call with analysts, Amazon’s CFO Brian Olsavsky said that the company cut its marketing spend by “about a third” in the quarter to focus on its supply chain that has taken a hit during COVID-19. The cuts are equivalent to a $2.1 billion dip in marketing spend that Amazon would have normally spent during the quarter.
- Amazon’s growth in higher-margin businesses like advertising and cloud helped offset a dip in retail profitability during the second-quarter.
More stories we’re reading:
Tencent and its hyper-popular messaging app WeChat have become Trump’s latest target. Here’s how the company became a $69 billion behemoth that has a stake in everything from ‘Fortnite’ to Hollywood blockbusters. (Business Insider)
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