Tidal Labs: Data-Driven Consumer-to- Consumer Marketing Labs by Fung Glo… · Tidal Labs is a startup with a data-driven influencer marketing CRM platform that enables companies

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DEBORAHWEINSWIG,MANAGINGDIRECTOR,FUNGGLOBALRETAIL&[email protected]:917.655.6790HK:852.6119.1779CN:86.186.1420.3016Copyright©2016TheFungGroup.Allrightsreserved.

1) Tidal Labs gives companies access to influencerson amass scale andhelpsmedia outletsmanagethecontentthatinfluencerscreateforthem.

2) The company’s data-driven platform,ContentMetric, matches multiple influencers withbrands and solves the problem of scale ininfluencermarketing.

3) Thetrendofhigherportionsofmarketingbudgetsbeing directed towards influencers across manyindustries presents an opportunity for companieslike Tidal Labs. Influencer marketing currentlyaccountsfor2–10%oftotalmarketingbudgets.

Tidal Labs: Data-Driven

Consumer-to-Consumer

Marketing

D E B O R A H W E I N S W I G M a n a g i n g D i r e c t o r ,

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U S : 6 4 6 . 8 3 9 . 7 0 1 7 H K : 8 5 2 . 6 1 1 9 . 1 7 7 9

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Tidal Labs: Data-Driven Consumer-to-Consumer Marketing TidalLabsisastartupwithadata-driveninfluencermarketingCRMplatformthat enables companies to scale up influencer marketing campaigns andmanagetheirinfluencercontent.Thecompanyhelpsbrandslocatethebestinfluencersbyusingdataanalyticsandmanagestheexecutionofmarketingcampaignsonbehalfof thebrands.Tidal Labshelpspublishers tomanagecontentandhas createdonlineblog communities forCondéNastand theTODAYTVshow.

Founded in 2011, the company provides “content-as-a-service” to brandsand publishers for a fee, typically $5,000–$30,000 a month. Its platformincludesmorethan50,000influencerswithatotalof136millionInstagramfollowersand145millionblogreaders.ThenameTidalLabsrepresents itsfounders’goaltomakenewwavesofconsumer-to-consumermarketing inthetraditionalmarketingindustry.

Source:TidalLabs

The startup focuses on “micro influencers” who have 5,000–150,000followers.These influencers typicallyproducemoreauthentic contentandhavebetterengagementwiththeirfollowingsversus"celebrity"influencers.These influencers cover industries such as fashion and beauty, food andbeverage,fitnessandhealth,homeandparenting.

TIDALLABS’DATA-CENTRICAPPROACH

TidalLabsattemptstohelpsolvetheproblemofscaleandautomationthattypicallyexistswithinfluencermarketingefforts.

In current industry practice, brands reach out to influencers directly orthroughmarketing agencies. This is not scalable because communication,content execution and workflow management for each influencer is amanualprocess.

With Tidal Labs’ data-driven platform, ContentMetric, the company usesdata analytics to matchmany influencers with many brands at the sametime, according to their marketing goals and budget. The most suitableinfluencers arepickedby their channelsof influence;blogs and Instagrampostings; industry focus and reach levels; engagements and page views.

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Tidal's ContentMetric technology helps choose the best-performinginfluencers month-over-month allows brands to form ongoing influencermarketingprogramsversustheusualone-offengagementstheyhavewithinfluencers. This is important as more companies transition influencermarketingfromtestcampaignstoalineitemonthemarketingbudget.

Source:TidalLabs

TIDALLABSLEVERAGESITSRELATIONSHIPSWITHMEDIAOUTLETS

Tidal Labs has unique two-way partnerships with media outlets such asCondé Nast, Men’s Health and for the TODAY TV show. The companyleverages its ContentMetric technology to power communities andinfluencer networks for its media clients. At the same time, thesemediapartnerships help Tidal Labs enlist the best bloggers and social mediainfluencersbecausewhenaparticipantsignsupononeofthesechannels,they join the Tidal CreatorExchange network of influencers. The mediapartnersalsolendtheireditorialexpertiseandhelpsTidalLabsidentifythebestcontent.

Source:TidalLabs

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Figure1:EmergingInfluencerMarketingPlatforms

Source:Companyreports/AngelList

Source:TidalLabs

WHYINFLUENCERMARKETINGISGROWINGRAPIDLY

Influencermarketinghasbecomemoremainstreamforthreereasons:

1) Social media have become more prevalent and increasingly occupypeople’sattentionat theexpenseof traditionalmediachannels suchasTV,radioandprintmedia.

2) Suggestivesellingthroughword-of-monthrecommendationsonsocialmedia platforms has become an increasingly popular advertisingmethod. According to a poll of 150 marketing professionals byTomoson, 22% of customers are acquired through influencermarketing campaigns, the fastest-growing customer acquisitionchannel.

Brand Founder&CEO YearFounded Funding BusinessModel SizeofInfluencer

Network

Revfluence EricLam 2014 Seedround

Softwareplatformthatempowersmarketerswithmore

than200,000socialmediacelebrities

200,000

Musefind JenniferLi 2014 Seedround

End-to-endsolutionletsbrandsmanageandtrackeveryaspectoftheirinfluencermarketing

campaigns

1Million

Shopography MarkZurada 2012 $140,000 Socialshoppingsiteturnedinfluencermarketingplatform Undisclosed

TidalLabs MatthewMyers 2011

Seedround,currentlyprofitable

Provides“content-as-a-service”tobrandsandpublishers 50,000

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3) The return on investment (ROI) for influencer marketing is muchhigher than traditional marketing. Influencer marketing averages areturnof$6.85forevery$1investedversusaregularmarketingreturnof $1.09, according to eMarketer. The same study revealed that forsomecategories,suchasconsumerpackagedgoods(CPG),thereturnscould be as high as $11.33 because the targeted audience of momshoppersisoftenengagedonsocialmediasites.Consumerstendnottorelyonsocialmediarecommendationstomakepurchasedecisionsonbig-ticketitemssuchashomeandgardenortravel.

Marketers are expected to allocate more of their marketing budgets oninfluencermarketing inthenext fewyears.AstudybyAdweek saidnearly60% of businesses plan to increase their influencer marketing spend.Industrysourcesestimate influencermarketingcurrentlyaccounts for2%–10%oftotalcorporatemarketingbudgets,dependingontheindustry.

DeborahWeinswig,CPAManagingDirectorFungGlobalRetail&TechnologyNewYork:917.655.6790HongKong:852.6119.1779China:86.186.1420.3016deborahweinswig@fung1937.comJingWangResearchAssociateHONGKONG:8thFloor,LiFungTower888CheungShaWanRoad,KowloonHongKongTel:85223004406LONDON:242-246MaryleboneRoadLondon,NW16JQUnitedKingdomTel:44(0)2076168988NEWYORK:1359Broadway,9thFloorNewYork,NY10018Tel:6468397017FBICGROUP.COM

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Tidal Labs: Data-Driven Consumer-to- Consumer Marketing Labs by Fung Glo… · Tidal Labs is a startup with a data-driven influencer marketing CRM platform that enables companies