Top Strategies for Successful Influencer Collaborations in the Beauty Industry

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  Selling their goods and services now involves significantly more complexity than it did a few years ago for huge business-tobusiness companies. Growing use of a wide range of new technologies has led clients to seek more intimate, intelligent customer experiences in their contacts with their vendors and greater participation, flexibility, and control over the purchasing process. As businesses and consumers cooperate to create individual products,  services, and solutions that meet their particular needs, the sales process today entails far more cooperation and information exchange than it did in the past.Particularly with enterprise-class customers, who may interact with many different areas of the vendor's business as well as through partners and resellers, the responsibilities of managing customer relationships and sustaining the end-to--end selling-through-delivery processes have grown far more  challenging. And all of this is happening in a corporate climate growing...
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How Business Entertainment is Creating New Revenue Streams for U.S. Corporations

Simply glance around. Companies across all E&M sectors are establishing live events and podcasts, developing subscription options, generating video for consumers and brands, and extending their e-commerce and product licensing initiatives. TV networks and film companies are creating streaming video services. Sports leagues and video game firms are collaborating on e-sports. Many are favoring new advertising items. Some of the more ambitious players are going worldwide, creating new revenue sources in new markets. Many successful entertainment and media firms have historically benefited from several revenue streams, including carriage fees and advertising for pay-TV networks, tickets and popcorn for movie theater owners, and single-copy sales, subscriptions, and advertising for magazine and newspaper publishers. What is new now is a sense of urgency brought on by a more arid monetization environment. Traditional sources of advertising and subscription revenue are dwindling, with the largest digital platforms taking the majority of the digital advertising growth.

Consumption and spending patterns are rapidly altering.

Meanwhile, many businesses continue to rely too heavily on old media revenue streams, which are running out of steam. Without major new sources of revenue growth, these organizations' strategic options will ultimately reduce to ongoing cycles of cost cutting and preparation for eventual amalgamation. Despite these hurdles, several companies are exploring intriguing new revenue streams, including subscription services, digital microtransactions, membership, consumer items, live events, and advanced advertising. They are creating portfolios of interconnected and complementary experiences that capitalize on the commercial potential of their most engaged users: their followers. The logic makes strategic sense. Fans spend more time watching, listening, participating, sharing, advocating, and creating content. Most importantly, fans spend more money and are more appealing to advertisers (see "How to Make Entertainment and Media Businesses 'Fan'-tastic," by Christopher Vollmer, s+b, May 8, 2017). Related Stories How to make the entertainment and media industries "fan"-tastic by Christopher Vollmer. Daniel Gross's article discusses how movie theaters are disrupting themselves. Bob Woods discusses how video gaming has evolved into a sport.To generate new revenue streams, E&M companies must make significant adjustments to their strategy, operational model, and culture.

The good news is that, as discussed below, a number of models show potential, and it is obvious what supporting skills must be constructed and developed in order to execute them.

Consider video games. Between 2012 and 2017, video games grew faster than any other major entertainment sector, including music, film, newspapers, magazines, books, and paid television. PwC's Global Entertainment & Media Outlook 2018-2022 predicts a 28% increase in the sector between 2018 and 2022. Electronic Arts (EA), Activision, and Take-Two Interactive have shifted from a single revenue stream one-time sales of bundled media to a multi-stream strategy. Games are being marketed as digital live services, with the option for content updates and in-game micropurchases of things that improve player performance and personalize gameplay. At EA, 35% of Madden and FIFA players, the company's two most lucrative franchises, spend money on in-game purchases related to its Ultimate Team game mode, which allows players to manage a fantasy team and strengthen their squad by purchasing better players. Live services contributed for almost 40% of EA's $5 billion in revenue in FY 2018, a 30% increase over the previous year. Activision and Take-Two Interactive share a similar trend. Success in this sector has encouraged game publishers to expand their intellectual property (IP) and fan bases into e-sports, film and TV properties, and consumer products, all of which are target-rich potential for new revenue streams. However, generating diverse revenue streams remains a struggle for many E&M organizations, particularly those accustomed to fulfilling financial targets through a few dominating revenue sources. Many E&M firms are constrained by operational silos, outdated incentives, and behavioral inertia. New revenue growth efforts are further hampered by a lack of alignment, poor coordination, and slower-than-expected implementation. Some businesses lack the consumer marketing expertise to gain and maintain customers in a direct-to-consumer relationship. Others have yet to invest in the required analytics skills. Finally, too many executives get caught up in the hype cycle, swarming the same chances like bees around a hive—remember digital publishers' collective "pivot to video"?

Model Behavior Across the E&M industry, several revenue-generating methods are evolving to create new fan-focused revenue streams.

The most prominent models that are gaining interest are discussed below. THE PLATFORM: Expand distribution reach by monetizing existing core brands, products, and intellectual property through new channels and platforms that are either owned and operated or accessed through partners. CBS All Access, the television network's subscription video program (available with minimal ads for $5.99 per month or without commercials for $9.99 per month), began in the fall of 2014. The video service has grown to 2.5 million subscribers, adding approximately 500,000 over the last year, thanks to exclusive original series such as Star Trek: Discovery and The Good Fight (a spin-off of the popular CBS Network series The Good Wife) that target specific fan communities, as well as a live feed of the CBS Network and Sunday NFL games. This performance indicates a new revenue stream of at least $180 million in video subscriptions on a run rate basis (assuming all 2.5 million users pay $5.99 per month). Receive the strategy+business newsletter directly to your email (sample). Email Address CBS believes that by expanding digital distribution, it will be able to entice more people to subscribe to CBS All Access. It begins with Amazon Channels, a video marketplace that provides premium streaming services to Amazon Prime users. CBS strengthened its connection with Amazon to include a multi-country license agreement that allows Amazon Prime to show The Good Fight in select worldwide regions, generating additional money. Finally, CBS has established two free ad-supported streaming services, CBSN and CBS Sports HQ, to attract younger news and sports lovers who can eventually be converted into paying All Access members.

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