The New Age of Sponsorship: Collaborating with Creator Brands

In today's digital landscape, a silent movement is underway to replace the traditional approach to sponsorships. Some creators are now realizing that the only true way to grow beyond their original content is to create the brands they want to represent and promote. This idea is driving them to establish businesses that have the potential to become bigger than them. And for sponsorship properties, partnering with successful creator brands does not only mean financial benefit, it also means access to passionate and engaged audiences. In this article, I will highlight how Feastables , Happy Dad and PRIME are establishing themselves as the most sought-out brands in the creator economy.

Feastables - Creator Owned Brand

By now, you have probably already heard of Feastables and if not, you at least know who MrBeast is. Also known as Jimmy Donaldson , he is arguably the biggest YouTuber in the world with more than 200M followers.

Created less than a year ago, his brand Feastables is quickly establishing itself as the fastest-growing chocolate bar brand in North America. With more than $10M in revenue in the first months of launching, the products are now available in major chains such as Costco and Walmart.

By combining the understanding of his young audience with a tangible and high-quality product offering, MrBeast continues to expand his empire beyond his content platforms.

The North Carolina native took his product's brand awareness a step further by partnering with his childhood club ; the Charlotte Hornets . The recent collaboration between the Charlotte Hornets and Feastables is making waves, and for good reason. It’s the first time an NBA team partners with a brand intrinsically tied to a content creator. Feastables will notably act as the official jersey patch partner.

The most important takeaway is that the Hornets gain much more than money with this partnership; they also gain MrBeast 's vast and engaged audience. It’s an entire digital ecosystem of fervent young fans who now have their eyes on this initiative by their favorite YouTuber, and the Hornets now have the opportunity to convert these potential fans for life.

"Our videos get 200 million views sometimes. For a lot of brands that advertise, sponsoring one of our videos would represent half of their yearly spend on YouTube. It's harder and harder for us to find brand deals that keep up with the pace. At that point, it makes more sense for me to build companies (Feastables ) and promote them, because I know it will actually lead to real sales. Ideally, one day, I don't have to do brand deals anymore." Jimmy Donaldson aka MrBeast

Happy Dad Hard Seltzer - Creator Owned Brand

The Nelk Boys are a Canadian collective, with more than 10M followers across platforms, originally known for their pranks on YouTube and their Full Send movement. Over the years, they have built one of the most loyal young audiences in the world with their authentic content and unique lingo. Their followers mainly consist of teenagers/young adults who are eager for reckless activities, humor, and entertainment. The majority of young North Americans would be able to name every member of the group before they could name one world leader. That's the extent of their influence.

Having launched several clothing collections in recent years, the Nelk Boys were now determined to create something that had the potential surpass the reach of their social platforms. In collaboration with the Shahidi brothers, they entered the beverage industry two years ago with their hard seltzer brand, Happy Dad .

Embodying the essence of the Nelk Boys , the brand not only reached their existing audience but also positioned itself for more global recognition. With the hard seltzer market on an upward trajectory, Happy Dad is well positioned to continue growing rapidly – it is now available in 22 US states and soon to be available in Canada. The huge turnout at in-store events and the immediate sellouts of new products highlight the brand's growing popularity.

Thanks to strategic partnerships with retailers, the introductions of innovative flavors like the recent collaboration with Death Row Records and Snoop Dogg , and leveraging platforms like the Full Send Podcast for direct marketing, the brand is gradually consolidating its foothold in the beverage industry. They also recently signed two of the biggest UFC athletes in Sean O’Malley and Justin Gaethje as brand ambassadors.

Their journey from content creators to successful entrepreneurs in the beverage sector illustrates the essence of brand extension that is authentic and resonates with the audience. Similarly to MrBeast , the Nelk Boys have shown that with a clear understanding of their audience, an authentic product offering, and strategic branding, creators can transcend digital boundaries and have a tangible impact on new markets, setting a precedent for others in the creator economy.

With more than 30M cans sold last year, it's only a matter of time before we see them partnering with sports teams or concert venues. However, it will be harder for them to establish themselves with a niche product against beer giants who have very broad exclusivities in sports and entertainment.

"Big companies were terrified of creator brands before. There was no proof of concept yet. Us (Happy Dad ), Feastables and PRIME pretty much came out at the same time. It took all three of us to turn around all the traditional retailers and make them pay attention." John Shahidi - President of Happy Dad

PRIME - Creator Led Brand

Logan Paul and KSI are two of the biggest content creators of their generation, with one being the face of American YouTube and the other being the face of British YouTube. Known as the greatest rivals in YouTube history, their rivalry eventually transformed into a smart business friendship. The pair teamed up to create PRIME , a sports hydration drink in collaboration with Congo Brands . Together, they have over 40M subscribers and influence across two different continents.

Created nearly two years ago, PRIME is the fastest-growing beverage company in the world. With over $250 million in revenue last year and now holding 5% of the market share, PRIME quickly became the go-to choice for the majority of Gen Z individuals walking into a convenience store.

Logan Paul and KSI are prominently associated with PRIME , but unlike previous examples of this article, they don't have ownership of it. While they serve as the public faces and are more involved than typical brand ambassadors, their stake in the company remains undisclosed and they have no hand in the company's business operations.

Now available in 11 countries including the UK, USA, South Africa, Canada, Australia, Germany, Denmark, Norway, Sweden, Spain, and Ireland, PRIME now positions itself as a fierce competitor to Gatorade - 70% ( 百事 ) and Body Armor/Powerade - 25% (Coca Cola ). Prime ( Congo Brands ) has managed to secure 5% of the market share, which is impressive in such a competitive market.

Promoting through their respective platforms and benefiting from Congo Brands ' distribution channels, the rise of PRIME was incredibly quick. It will be interesting to see how their growth will continue against the industry giants, but it's safe to say that PRIME has an edge in terms of youth influence.

Their personal commitment is significant, having held launch events in every country where PRIME was introduced. Similarly, they've put in a lot of effort to forge strategic partnerships with top athletes and major sports teams. Logan Paul also extensively promoted the products on his podcast 'Impaulsive'.

Their pool of athletes include UFC stars Alexander Volkanovski and Israel Adesanya , soccer standouts Erling Haaland and Alisha Lehmann , and hockey phenom Auston Matthews .

They have also recently signed deals to become the exclusive sports hydration drink of major sports organization such as the Los Angeles Dodgers , Arsenal FC , Bayern Munich , FC Barcelona and the UFC - all of which will benefit from much more than the money from this association.

Thanks to their vast online reach, Logan Paul and KSI are far from solely relying on their associations with big brands for success. They are skilled content creators who know precisely what their young audience expects from them.

Why Sponsorship Properties Need to Pay Attention to Creators Brands?

According to a new report from Teachable , 40% of Millennial users said their decision to buy products is influenced by a sincere desire to support creators. That jumps to 50% for Gen Z.

The evolution of the creator economy has led to a significant shift in the sponsorship landscape, Many content creators are now leveraging their online influence to enter new markets and more of them are becoming successful proofs of concept.

Here are the key reasons why sponsorship properties should more than ever pay attention to creator brands when it comes to seeking deals:

• Massive Audience Engagement and Authenticity: Creators like MrBeast , the Nelk Boys , and Logan Paul & KSI have highly engaged and loyal digital audiences. Partnering with the authentic brands of such creators not only brings in sponsorship money but also brings us closer to their audiences.
• Global Reach and Influence: Creator brands aren't confined to a specific region or demographic. Their global appeal means sponsors can tap into diverse markets and age groups, expanding their fanbase exponentially. Fans from around the world, who might have never heard of you, now know you as the organization that partnered with their favorite creator.
• Shifting Marketing Dynamics: Traditional advertising channels are losing ground to influencer marketing. By associating with creator brands, organizations align themselves with modern marketing dynamics, ensuring their relevance in the digital age.

In summary, the combination of large marketing budget and vast digital influence makes successful creator brands an attractive proposition for sponsorship properties. Organizations that recognize and act on this trend will be able to enjoy the dual benefits of bringing more revenue and new audiences.