The future of online shopping is human creators and AI music
The future of online shopping is human creators and AI music
Hours before a federal law was set to take effect in January mandating that Chinese tech giant ByteDance sell TikTok’s U.S. operations, the social media app shut down. Though service was restored the next day, thousands of TikTok content creators were faced with the prospect of their source of income disappearing in an instant. The incident laid bare a common problem creators face: As social media algorithms change and platforms fold and emerge, creators need to find a way to grow their following and take it with them to different sites. That’s where LTK comes in. The 14-year-old company allows influencers to connect with brands, get commissions from products they plug, and hedge their bets by making money off any platform. The company also helps creators build a community that’s not subject to the vicissitudes of social media platforms: When a creator links to a product via LTK on any social platform, consumers have the option of following that person on LTK as well. And the company helps creators carry their sponsored content deals from platform to platform as well. LTK, which raised $550 million in 2021 at a $2 billion valuation, works with more than 350,000 creators, 8,000 retailers, and a million brands. Today, LTK facilitates more than $5 billion in annual sales through its platform. The company was cofounded by Amber Venz Box, a content creator herself, who also serves as its president. Venz Box came on the Most Innovative Companies podcast to discuss how LTK is navigating ever-changing social media algorithms, the increasing amount of AI-generated social content, and consumer fatigue from sponsored content. Every creator I talk with says they’re seeing less and less return on investment from their social posts. How do you handle that trend as a company? Social media has changed a lot in the last year specifically. Until 2024, social media was a place to follow creators and be part of communities. You had control over your feed. [Instagram head] Adam Mosseri came out in January and said this year the majority of what you see is going to be recommended content [that an algorithm selects]. We saw and felt that. If you had 100,000 impressions in January, you ended the year with about 25,000 impressions per post. How do you deal with those changes? We saw, as early as 2015, 2016, that their business is built on advertising. Our business is not built on that. So there are incentives that are misaligned. You have to displace a piece of creator content in order to insert an ad. That was the beginning of us thinking that we need to start planning. Snap also scaled quickly [around that time]. We were seeing the rise of a major scaled platform almost every two years, which presents fragmentation risk for our creators. We also saw consumers shift from desktop content consumption to mobile. At the end of 2016, we realized we had to create a home base for our creators because when you play this tape forward, it’s not great for our industry. So by 2017, we launched the LTK app. That is where everything lives for [our creators], where they house their community, and [where] they could start using social media as a marketing platform. Is video a big part of your business? We introduced video to our platform 2017. Over the last two years our creators have produced 300% more video. It’s quickly becoming the largest content type on LTK and it’s the most important. We know that consumers really resonate with video. There’s a higher trust with that, and as a creator, I’m actually selling trust. Ultimately, I need to be in a relationship with my followers and video is the best way to do that. We totally rebuilt the app and relaunched it this year to be video-first. When it comes to [the shutdown of] TikTok, we were the first generation to be fully disenfranchised for a minute. Our users were able to feel firsthand what it meant to have their community pulled. They need a home base to own their audience. We saw a huge uptick and people setting up their LTKs and driving their community over to the platform. These days, consumers can spot sponsored content and advertising from a mile away. What are some of the ways a creator can stay authentic and also sell things? Creators definitely don’t win by tricking people. For example, if I tell you this mascara is a tubing mascara and it’s not going to smudge on your face, and then when you try it and it smudges and it’s total crap and it’s flaky, you’re never going to trust me ever again. Creators need to be truly helpful. The environment we’re in this year is so wild when it comes to trust because there’s just a lack of it across the internet. Consumers are looking at AI creators across TikTok. Mark Zuckerberg says the vast majority of content you’re going to see on his platform is going to be machine created. Those are super low-trust things. Being a human creator is a differentiator. How does LTK make money? When you
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