Later, an influencer marketing and social media management software firm, is in the process of acquiring the social influencer app Mavely for a significant $250 million.
Significance of the Acquisition
This acquisition marks a substantial investment in the burgeoning social commerce industry. It is expected to enhance Later‘s capacity to provide comprehensive impact and measurable return-on-investment (ROI) for marketers, while also empowering creators to optimize their earnings through social commerce.
Leaders in Their Respective Fields
Later is renowned as a leader in enterprise influencer marketing and social media management software. The platform has garnered trust from prominent brands like YouTube, ESPN, and Kylie Cosmetics.
Mavely, on the other hand, caters to everyday influencers seeking to generate income through commissions on sales they facilitate for brands and retailers. In the first half of 2024, Mavely distributed over $16 million in commissions, campaign fees, and other earnings to its vast network of more than 85,000 creators.
CEO Insights
“Bringing Mavely under the Later umbrella is a pivotal step in redefining the collaboration between marketers and creators,” remarked Scott Sutton, the CEO of Later. He emphasized the technological prowess and shared vision that Mavely brings to the table, foreseeing a symbiotic relationship that enhances value for marketers and empowers creators to cultivate sustainable, income-generating ventures.
Enhanced Capabilities
The integration of Mavely with Later is poised to drive outcomes at the bottom of the funnel, ultimately resulting in increased purchases and revenue for brands and retailers. This aligns with Later‘s existing influencer campaigns, which focus on brand awareness and engagement, offering clients the ability to demonstrate full-funnel impact.
Future Prospects
The collaboration between Later and Mavely presents new social commerce revenue streams and potential opportunities for growth. By leveraging Mavely‘s expertise and technology, Later anticipates a boost in revenue driven by creators, thereby establishing a Creator-Led Growth model in addition to its existing growth strategies.
Mavely‘s campaigns based on return on ad spend (ROAS) empower brands and retailers to achieve significant returns across various marketing channels.
Monetization Strategies
Future initiatives include the monetization of paid media to amplify social posts containing Mavely links. Additionally, the introduction of retail media will allow retailers to bid on digital spaces where Mavely creators promote products and direct traffic.
Technological Advancements
The acquisition of Mavely secures the underlying technology and intellectual property critical to Later‘s affiliate integration, ensuring the platform’s ability to deliver affiliate capabilities effectively in the long run.
Company Growth and Background
Later, with approximately 300 employees, is set to expand its workforce by incorporating 75 individuals from Mavely, reaching a total of 375 team members. The company, initially known as Latergramme, was founded in Vancouver, Canada, in 2014 and rebranded following its acquisition by influencer marketing platform Mavrck in 2022.
Mavely, established in 2019 and headquartered in Chicago, was previously owned by Rhyz Inc, a subsidiary of Nu Skin Enterprises. The company had raised $1 million in a seed round before being acquired.
Later has raised over $276 million to date, with backing from private equity. The acquisition of Mavely was facilitated through a strategic investment from investment firm Summit Partners.
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FAQs
What is the significance of Later acquiring Mavely?
The acquisition signifies a strategic move to enhance full-funnel impact and ROI for marketers while empowering creators in the social commerce space.
How will the integration of Mavely with Later benefit brands and retailers?
The integration is expected to drive bottom-of-funnel outcomes, leading to increased purchases and revenue, complementing Later’s existing influencer campaigns.
What are the future revenue opportunities presented by the collaboration between Later and Mavely?
The collaboration introduces new social commerce revenue streams and the potential for monetizing paid media and retail spaces for enhanced brand exposure.
Credit: venturebeat.com
