Google recently announced its acquisition of FameBit, a marketplace that connects brands, influencers, and creators with YouTube and other social networking sites to sponsor their content.This is indeed a huge step for Google as this combination would increase the availability of branded content opportunities and bring more revenue to YouTube.
However, YouTube said that the FameBit acquisition does not mean that it will be preferred over other digital marketing agencies and services.
YouTube’s Ariel Bardin (VP, Product Management – Google Payment) said “Creators will always have the choice in how they work with brands, and there are many great companies who provide this service today. This acquisition doesn’t change that. Our hope is that FameBit’s democratized marketplace will allow creators of all sizes to directly connect with brands, as well as provide a great technology solution for companies like MCNs and agencies to find matches for their creators and brand partners.”
Financial terms of the deal have not been disclosed yet so FameBit will remain as a separate operation for now.
In a blog, FameBit founders David Kierzkowski and Agnes Kozera said, “With Google’s relationship with brands large and small, and YouTube’s partnership with creators around the globe, we hope to connect even more brands to creators, engage more audiences, and make brand marketing more creative and authentic than ever.”
FameBit has worked with world renowned brands including Marvel Entertainment, Paramount Pictures, Sony, L’Oreal, Canon, Activision Blizzard, Adidas, Rovio, and Conair. The company has made deals with advertisers and creators that have resulted in more than 25,000 branded videos that have generated over 2 billion minutes of viewing time.
The trend set in video advertising has been apparent for some time now. Advertisements are fine but, they give better results when integrated into a proper video and delivered by a creator whom fans look up to. The acquisition of FameBit is clear that this is one more step in strengthening Google’s offerings and to more strongly link advertisement on their platforms to revenue.