Next in Media: Detailed Summary of "Why Some Brands Are Still Way Behind on Creators"

Episode Release Date: January 9, 2025
Host: Mike Shields
Guest: Reza Azad, Co-Founder and Partner at Underscore Talent

1. Introduction to the Episode

In the episode titled "Why Some Brands Are Still Way Behind on Creators," host Mike Shields engages in an insightful conversation with Reza Azad, a pioneering figure in YouTube creator marketing and the co-founder of Underscore Talent. The discussion delves into the evolving landscape of media, marketing, and advertising, focusing on the intersection between brands and digital creators.

2. Guest Background and Journey

Reza Azad’s Early Career and Foundation of Underscore Talent

Reza Azad recounts his extensive experience in the digital marketing arena, starting with his tenure at Collective Digital Studios, which later became Studio71. He highlights his early adoption of digital platforms like MySpace and Facebook for marketing traditional artists, such as Linkin Park and Kevin Hart. Reza’s pivotal role in introducing brands to digital talents like Fred and Rhett and Link set the stage for his transition into managing digital talent and founding Underscore Talent.

Reza Azad [02:00]: “We were very digitally forward in how we thought about the representation of our clients. Our representation was 360 and very traditional.”

3. Evolution of YouTube and MCNs

From Traditional Management to Multi-Channel Networks

Reza describes the shift from traditional talent management to the creation of a Multi-Channel Network (MCN), now known as Studio71. This evolution was driven by the burgeoning potential of YouTube as a platform for marrying creators with advertisers. Reza emphasizes the importance of brand safety and sophisticated ad network tools that differentiated Studio71 from other MCNs.

Reza Azad [06:33]: “We built some technology around brand safety that worked really well. Our business was profitable and growing significantly.”

4. Current State of Brands and Creator Partnerships

Disparity Between Industries in Leveraging Creator Media

The conversation reveals a significant disparity between industries such as beauty and consumer goods in their adoption of creator media. While beauty brands like L'Oréal and Estee Lauder have fully embraced creator partnerships, other sectors like confectionery and traditional consumer goods remain hesitant.

Reza Azad [13:08]: “Still outside of beauty and outside of like some culinary stuff, there’s less engagement than you would think.”

5. Measurement Challenges and Industry Adoption

The Role of Measurement in Brand Hesitancy

Reza identifies measurement as a critical barrier preventing brands from fully investing in creator partnerships. Unlike the sophisticated measurement systems in digital ads and traditional TV, metrics for branded content on platforms like YouTube remain underdeveloped. The exception is the beauty industry, which has successfully integrated advanced measurement tools like Tribal into their marketing strategies.

Reza Azad [14:37]: “Measurement is still not where it is on TV. Outside of Tribal, there may be other companies trying it, but there isn’t a whole industry that’s bought in.”

6. The Role of Different Platforms (YouTube vs. Others)

YouTube’s Dual Nature: Social Product and Longer-Form Content

Reza explores YouTube's positioning, highlighting its dual nature as both a social platform and a venue for longer-form content akin to traditional TV. He contrasts YouTube's capabilities with those of platforms like Facebook, TikTok, and Pinterest, noting that while YouTube excels in certain areas, it lacks the seamless shopping integrations present on other platforms.

Reza Azad [21:19]: “They're the easiest to buy and get a campaign going. Kind of targeting in a very...”

7. Future Trends and Opportunities

Emerging Formats and the Potential for New MCNs

Looking ahead, Reza anticipates growth in scripted content, podcasts, and innovative advertising formats on YouTube. He suggests that while traditional MCNs may not make a comeback, the evolving needs of creators will open opportunities for new types of service providers to emerge, leveraging AI and automation to support digital talent.

Reza Azad [27:40]: “AI and automation are going to drive that faster... providers will step into that void and provide that service.”

8. Examples of Successful Partnerships

Highlighting Unique Talent Collaborations

Reza shares examples of successful partnerships managed by Underscore Talent, including Logan Moffat (“the cucumber guy”) and iconic figures like the Undertaker. These collaborations demonstrate the breadth of opportunities within the creator economy, spanning diverse niches from culinary arts to professional wrestling.

Reza Azad [28:31]: “Logan Moffat... doing cucumber recipes inspired by his love of Asian, really Korean culture.”

9. Conclusions and Final Thoughts

Bridging the Gap Between Brands and Creators

In closing, Reza emphasizes the ongoing need for robust measurement systems and sophisticated strategies to bridge the gap between brands and creators. He remains optimistic about the future, expecting that continued innovation and strategic partnerships will drive deeper integration of creator media into mainstream advertising.

Reza Azad [30:22]: “It’s going to be fun to watch where all this goes.”

Notable Quotes

• Reza Azad [02:00]: “We were very digitally forward in how we thought about the representation of our clients. Our representation was 360 and very traditional.”

• Reza Azad [06:33]: “We built some technology around brand safety that worked really well. Our business was profitable and growing significantly.”

• Reza Azad [13:08]: “Still outside of beauty and outside of like some culinary stuff, there’s less engagement than you would think.”

• Reza Azad [14:37]: “Measurement is still not where it is on TV. Outside of Tribal, there may be other companies trying it, but there isn’t a whole industry that’s bought in.”

• Reza Azad [21:19]: “They're the easiest to buy and get a campaign going. Kind of targeting in a very...”

• Reza Azad [28:31]: “Logan Moffat... doing cucumber recipes inspired by his love of Asian, really Korean culture.”

• Reza Azad [30:22]: “It’s going to be fun to watch where all this goes.”

Conclusion

This episode of Next in Media offers a comprehensive exploration of why many brands lag in leveraging creator partnerships. Through Reza Azad’s expertise, listeners gain valuable insights into the challenges of measurement, the importance of sophisticated ad networks, and the transformative potential of creator media. As the digital landscape continues to evolve, the dialogue underscores the necessity for brands to adapt and embrace innovative strategies to stay competitive.