Latest / Influencer Marketing with Fexingo: Creators, Sponsorships, and Modern Endorsement Deals / Creators Buying Their Own Ad Networks
Transcript
- Lucas: So there's this trend that's been picking up steam over the past year, and it feels like the natural next step for creators who've already bought their own agencies, their own studios, even their own ad servers. Now they're building their own ad networks. Luna: Ad networks? As in, creators are becoming the middlemen between brands and other creators? Lucas: Exactly. And it's not just the mega-influencers anymore. There's a mid-sized tech reviewer, about 400,000 subscribers on YouTube, who recently launched a private marketplace. He's curated a roster of about thirty creators in the tech niche, and he's selling ad placements across their channels directly to brands, bypassing the traditional ad exchanges. Luna: So he's essentially running his own little programmatic exchange. What's his cut? Lucas: Fifteen percent. And he's not alone. I've seen similar setups in gaming, in beauty, even in finance. These creators are leveraging their understanding of their audience to offer brands targeted, engaged viewership without the platform taking a huge slice. Luna: But isn't that just recreating what platforms like YouTube already do? They take a 45 percent cut, so it's a better deal for creators, but isn't the real challenge brand safety and ad fraud? Lucas: Right, and that's the crux. When you're a platform, you have the infrastructure to vet advertisers and ensure quality. When you're a creator, you're trusting your gut and your network. The tech reviewer I mentioned actually vets each brand manually, and he only works with companies that he'd personally recommend. That's his pitch: authenticity over scale. Luna: But that's labor-intensive. How scalable is that really? Lucas: That's the million-dollar question. For now, it's a boutique operation. He's doing maybe a dozen deals a month, and each one requires a lot of back and forth. But he's proving that creators can own the relationship, not just rent it from a platform. Luna: And that's the bigger story, right? It's about ownership and control. We've seen creators buy their own agencies, their own studios, their own ad servers, and now they're vertically integrating into the ad supply chain. Lucas: Exactly. And it's not just about the money. It's about data. When you run your own ad network, you see exactly which campaigns perform, which audiences convert, what creative resonates. That intelligence is gold. Luna: Yeah, platforms have been hoarding that data for years. Creators are finally getting a slice of that pie. Lucas: And it's trickling down. I talked to a lifestyle creator with around 80,000 followers who joined one of these networks, and she said she gets more value from the shared insights than from the actual ad revenue. She's learning what brands actually want to pay for. Luna: That's a different kind of compensation. It's almost like they're getting an education in ad sales. Lucas: Which is exactly what they need if they want to eventually build their own network. It's like an apprenticeship. Luna: But let's be real: doesn't this whole thing rely on a certain level of trust? I mean, if a creator is selling ads on other people's channels, they're staking their reputation on that other creator's content. One scandal and the whole network could implode. Lucas: Absolutely. And that's why these networks are starting small and curated. They're not trying to be the next Google AdSense. They're more like boutique agencies that happen to use ad tech. The trust is the product. Luna: So what's the threshold for a creator to even attempt this? You need enough influence to attract brands and enough credibility to attract other creators. That seems like a high bar. Lucas: It is. But we're seeing it happen at different scales. There are mid-tier creators doing this with a handful of peers, and there's one notable case of a macro-influencer in the fitness space who built a network of over a hundred creators. He's now making more from the network than from his own channel. Luna: That's a shift. He's essentially running a media company. And that's the endpoint, right? Creators become media moguls. Lucas: Exactly. And it's not just about ad revenue. These networks are also opening doors for creators to negotiate better rates on their own sponsorships, because they have a better sense of the market. They're no longer flying blind. Luna: It's like they're forming a union, but instead of collective bargaining, it's collective selling. Lucas: That's a great way to put it. And speaking of collective support, if these conversations have sparked something you've actually used in your own work or side projects, consider supporting the show. It helps us stay ad-free and keep bringing you these deep dives. You can do that at buy me a coffee dot com slash fexingo. Luna: Yeah, it's a small gesture that makes a big difference for us. Thanks for considering it. Lucas: Now, one of the most interesting aspects of these creator ad networks is how they're handling ad fraud. Because when you're a small network, you can't afford to have bots inflating your numbers. It would destroy your credibility with brands. Luna: So how are they tackling that? Are they using third-party verification? Lucas: Some are, but that's expensive. Others are taking a more manual approach, looking at engagement rates, comments, even doing spot checks with the creators. It's more work, but it builds trust. Luna: And that trust is what allows them to charge premium rates. I've seen some networks charging a 30 percent premium over what brands would pay on a platform. Lucas: Right, and that's the value proposition. Brands are paying more because they're getting a targeted, engaged, and verified audience. It's a win-win, as long as the network maintains its standards. Luna: But isn't there a risk that these networks become too cozy with brands? I mean, if the creator is also the one selling the ads, there's a conflict of interest. They might be tempted to recommend a product they don't actually believe in. Lucas: That's a real concern, and it's something the community is wrestling with. Some networks are addressing it by separating the ad sales from content creation. The network acts purely as a broker, and the individual creators maintain their editorial independence. But it's not always clean. Luna: I guess it comes down to the creator's personal brand. If they're known for being authentic, they can't afford to shill. But if they're seen as a sell-out, the network collapses. Lucas: Exactly. And that's why we're seeing networks form around specific niches, where the audiences are more homogenous and the expectations are clearer. A tech audience won't tolerate a creator promoting a scam VPN, but a beauty audience might be more forgiving of a sponsored skincare line. Luna: So the networks that succeed will be the ones that really understand their niche's values. Lucas: Precisely. And that's why this trend is so fascinating. It's not just about technology or business. It's about community building and maintaining trust in a fragmented media landscape. Luna: What do you think the next step is? Are we going to see creator-owned ad exchanges that go public? Or maybe creators will start buying up ad tech companies? Lucas: That's the million-dollar question. We've already seen creators buy ad servers, so ad tech isn't off the table. But I think the more immediate trend is consolidation. The small networks will either merge or be acquired by bigger players, maybe even the platforms themselves. Luna: The platforms co-opting the trend would be quite a twist. Lucas: It would be, but it would also signal that the creator economy has truly matured. When the incumbents start copying the insurgents, you know the innovation is real. Luna: So what should a typical creator do if they're interested in this model? Should they start their own network or join an existing one? Lucas: I'd say start by joining one. It's a low-risk way to learn the ropes, understand the pricing, and see how the mechanics work. Then, once you've built relationships and a track record, you can consider branching out on your own. But it's not for everyone. Luna: And for brands? How should they approach these networks? Lucas: Brands should treat them like any media buy. Do your due diligence, ask for transparency, and start with a small test campaign. The best networks will welcome that scrutiny. The ones that don't, you should avoid. Luna: It's a brave new world out there. From influencers to media owners. Lucas: And the key takeaway is that the power dynamic has shifted. Creators are no longer just content producers. They're becoming the infrastructure. And that's a fundamental change in how the creator economy operates.