Can TikTok Cut Out the Middle Man Between Creators and Brands?

TikTok is a hub where influencers build up their net worth, average people take stabs at internet fame and brands either make effective or cringe-worthy attempts to connect with Gen Z. The platform has been considered a long-time threat to media like YouTube and Instagram, but one of TikTok’s growing capabilities could potentially disrupt a whole new sector of business: influencer marketing agencies. “TikTok is helping us not only pick the right people, but shape the right content,” said Jess Tinetti, group strategy director of content at Atlanta independent agency Dagger. Instead of turning to an influencer marketing agency, which is Dagger's typical move when clients want to work with creators, Tinetti tapped into TikTok's Creator Marketplace. Tinetti is not the only marketer with their eyes on the TikTok Creator Marketplace, which connects brands and creators through all steps of an influencer marketing campaign, from creator discovery to post performance and payment. While other platforms, including Meta and Snap, have a similar service, TikTok’s platform offers the most advanced, white-glove product, according to three agency sources. On the surface, TikTok’s Creator Marketplace seems like a one-stop shop for marketers—they can discover creators without involving a middle man, ensure content feels native to the platform and drive efficiencies. But in practice, the platform isn’t meant to serve every type of influencer marketing campaign. For marketers who seek more guidance and deals with flexible terms, influencer agencies might still have an edge, according to conversations with marketers, creators and consultancies. What TikTok offers TikTok Creator Marketplace was launched in 2019 and now has more than 100,000 creators. As platforms increasingly engage in an arms race for creators, Adrienne Lahens, global head of operations at TikTok Creator Marketing Solutions, says the marketplace is a way to help TikTok retain top talent. Snap, Meta, TikTok and Youtube have all launched creator funds since 2020, doling out millions of dollars to incentivize creators to make content on their platforms. https://www.tiktok.com/@itxmejules/video/7039863475123866926?_d=secCgYIASAHKAESPgo864qXWEJ1M1%2FwsRvt4mnmbu7ZbXJdiLldiYf%2BUPaCpSIZRi3MKys9IkRBQvGeEF7mnhTUBmbsPHOXy%2BhYGgA%3D&checksum=8f5c3914f60dc51cb2108e472d82ede04289977a394d4d172ffe8bf51d92b3ea&language=en&preview_pb=0&sec_user_id=MS4wLjABAAAAtpBA7rMHdj6cUclcX0vLAERHVyhQ3dOw2ET3u17cEVH-DhhlpR9h_EoWgUwUJ-_D&share_app_id=1233&share_item_id=7039863475123866926&share_link_id=61F0D55C-294C-4061-A3F7-C19F7977FD81&source=h5_m&timestamp=1643819192&tt_from=copy&u_code=dbe9j1fk1a821f&user_id=6807280103392003077&utm_campaign=client_share&utm_medium=ios&utm_source=copy&_r=1 “We’re investing really heavily in creator marketing,” she said. “Creators are the lifeblood to TikTok, so it’s imperative that we provide a variety of solutions to help creators monetize on the platform.” TikTok does not charge advertisers to use the service, nor does it take a cut of the transaction between brand and creator, Lahens said. Lindsey Lehmann, director of influencer and branded content at PMG Digital Agency, said that with Creator Marketplace, marketers can find data, license music, conduct brand lift studies and access data all in one place. “They are able to find a lot of efficiencies in one offering,” she said. For marketers already diverting a portion of their media budget to TikTok, working with the marketplace is cost effective and gives them access to top talent, according to Ross McCormack, vp director of social strategy at Havas Media Group. “These people really understand what resonates on the platform and that’s really compelling for brands,” McCormack said. TikTok allows marketers to find creators through two mechanisms—searching through their database and inviting a creator to participate, or open application campaigns, a newer option where brands can post a brief summary of their campaigns and creators can reach out if they’re interested. “It really democratizes the selection process,” Lahens said. “For brands who might have had a very set idea of who they were looking to work with on a campaign, this introduces them to creators they didn’t think about.” The influencer agency advantage TikTok Creator Marketplace may give marketers a bevy of tools, but it doesn’t teach them how to fish. For help with campaign strategy at a high level, a traditional agency is still the best place to turn, according to Nate Jones, head of influencer marketing at Gen Z marketing agency JUV Consulting. “It’s super helpful in connecting brands and creators,” he said. “It was the obvious next step for a brand like TikTok, but I still think there’s a lot of room for folks like us because we’re not simply connecting a creator to a brand. We are coming up with a concept and creative, curating a campaign and thinking holistically about what that campaign will look like.” Lahens said Creator Marketplace isn’t intended for those new to influencer marketing. “TTCM [Tik Tok Creator Marketplace] is primarily a self-serve platform. TTCM is great for brands to use that are familiar with creator marketing,” Lahens said. “For brands who require far more hand-holding in that process, that’s what our larger agency ecosystem is there to support.” McCormack said that the marketplace provides brands with vetted, high-level talent with big followings and can be a good opportunity for a creator to work directly with a platform. But creators have more mixed experiences working directly with TikTok. Influencer Camila Vilas, who has worked with brands like Sephora and Coach, was inclined to delete her account after making a profile due to an influx of "spammy brand deals." “The deal flow is consistent, but typically priced lower than deals found through agencies and management,” said Griffin Johnson, co-founder of Gen-Z focused agency HawkeZ. “I see it being a very popular tool for micro influencers as a side hustle but it will not change the entire landscape.” https://www.tiktok.com/@tiktokforbusiness/video/7036870097247472898?_d=secCgYIASAHKAESPgo8BTDShhZ%2Fq02GUSOGdsjkBGEpWs6GeJU0xn4XWReXykrVGouzSHSu4SyrZjNzwlCCZSShpimn%2F6B52ju7GgA%3D&checksum=3fe72c242a04260e101a84b596acf70f944b9a62db8b190e00cdc54fa5711a91&language=en&preview_pb=0&sec_user_id=MS4wLjABAAAAtpBA7rMHdj6cUclcX0vLAERHVyhQ3dOw2ET3u17cEVH-DhhlpR9h_EoWgUwUJ-_D&share_app_id=1233&share_item_id=7036870097247472898&share_link_id=7F65CEF7-10BF-4785-921A-201C040A2917&source=h5_m&timestamp=1643835453&tt_from=copy&u_code=dbe9j1fk1a821f&user_id=6807280103392003077&utm_campaign=client_share&utm_medium=ios&utm_source=copy&_r=1 Some creators may be able to make more money outside of Creator Marketplace because working with individual agencies gives them more leverage. McCormack said that there is much more flexibility in negotiating contract terms with a traditional influencer agency than through the platform. In the end, even Tinetti of Dagger, who is excited about the opportunities TikTok Creator Marketplace can bring social marketers, decided against finding talent through TikTok for her campaign. “We still believe this will be where the landscape shifts, but we're seeing that platforms like TikTok have some work to do to make sure they can offer the full service that brands and agencies are looking for when it comes to creator campaigns,” Tinetti said. While the Creator Marketplace and influencer marketing agencies could work against each other, shops could also take advantage of the platform to manage “an influx of outreach from brands,” according to Erik Huberman, CEO of agency Hawke Media. “For agencies it could just become another tool to leverage while servicing their brand clients that are wanting to reach these influencers,” he said.