Google announced on Tuesday that they had bought FameBit to help creators diversify their earnings. FameBit is a self-service technology platform that connects advertiser and creators. FameBit becomes Google’s first influencer network. The tech giants also own YouTube.
The acquisition of FameBit is significant because it will allow Google to have the technology to service brands and creators. The company said that the move was wise because it will help in the generation of more revenue. Agnes Kozera and David Kierzkowski launched FameBit in 2013. The headquarters of the company are in Santa Monica. FameBit has created more than 25,000 videos on YouTube, Instagram, Twitter, Facebook, and Tumblr. Some famous brands associated with the company are L’Oreal, Adidas, Canon, Marvel, Sony, and Disney.
Google did not disclose the terms of the agreement. Despite the acquisition, FameBit will still run as an independent company and will not undergo any restructuring for now. Kozera and Kierzkowski said that they hoped they would connect more brands to creators because of the good relationship that Google has with large and small brands.
Google observed that many advertisers had increased their spending on YouTube video ads by 50 percent over the last year. Multi-channel networks have become more competitive. Google aims to provide more value for its services and gain more oversight. Recently, the tech giant updated their term of services for creators to reveal paid promotions. Programs that are in partnership with YouTube allow creators to make money from ads, merchandise, and subscription. FameBit will assist YouTube by linking them with other revenue-making enterprises.
Kozera told USA Today that FameBit influencers earn between $2,000 and $3,000 per month. The influencers get paid in the form of cash or gifted products. The acquisition is similar to Twitter’s purchase of New York-based Niche last year. Twitters acquisition helped to connect creators and advertisers. It should be noted that the Google’s acquisition of FameBit will not limit YouTube creators to working with FameBit. Google announced on their blog that they hoped that FameBit’s democratized platform would allow creators and brands to connect.
In 2010, Google announced plans to bring Internet that’s 100 times faster with Google Fiber. Since then, the company laid fiber optic Internet connections in only a handful of cities such as Kansas City and Austin. But plans to bring this high-speed service to other cities such as Los Angeles, Dallas, and Oklahoma City have been suspended.
It appears that Google has underestimated costs related to bringing fiber optic Internet connections across the nation. Now, Google Fiber is planning layoffs, according to CNN Money report. Perhaps, as many as 9% of employees will lose jobs. Overall, 100 or so jobs will go which, indeed, is a small percentage of all employees at the entire company.
Google, now known as Alphabet, has lost over $850 million in the second quarter of this year in the so-called “other bets” division, of which Fiber is part.
“It shouldn’t be a surprise to anyone that building digital infrastructure is an incredibly costly undertaking, and it also shouldn’t be a surprise that it’s not a terribly profitable one,” stated Craig Moffett, telcom analyst. Of course, it doesn’t mean that Google is unprofitable in other areas.
Now, Google is seemingly coming back to Earth with some of its projects as the company seeks to reduce costs. Also, the focus now is on wireless technology rather than cable, so Fiber is not on a priority list, although Google hasn’t announced its liquidation. If there’s a promise of future success, Google will carry on with Fiber.
As reported in a recent article for The New York Times, Google has spent around $450 million on projects in Europe as a part of its soft lobbying efforts to improve its image. Google has been struggling with the public perception of it in Europe as an American company that has barged in and refuses to play by the same set of rules as everyone else.
Google has been accused of breaking antitrust regulations, failing to pay taxes and not protecting online privacy rights. While Google has publicly rejected all of these claims, it has been working hard to improve the overall company image. Google has been lobbying especially hard in Brussels and has also spent large sums on direct lobbying. This is because Brussels is the site of many of its regulatory problems in recent years. In 2014 alone, Google spent about $4.2 million on political lobbying efforts in Brussels. During the same time, Google spent about $17 million on direct lobbying in D.C. It remains to be seen whether these expenditures will have any effect on whether Google will face charges.
Some of the initiatives that Google has recently funded in Europe include music concerts sponsored by YouTube, digital training courses for high school teachers in Ireland and a virtual reality exhibit at a museum in Belgium. European governments have been more than happy to receive the fruits of Google’s soft lobbying efforts because there have been plenty of funding gaps thanks to the sluggish economy of late.