One of the 26 startups that will compete for a share of more than $1.75 million in cash prizes at Wednesday's MassChallenge awards ceremony helps brands generate sales by connecting them with YouTubers who can reach their target audience.
Grapevine was founded in 2012 at the Cambridge Innovation Center by Brendan Lattrell, a Discovery Channel producer who began to notice that many people who make YouTube videos were getting more views than his prime time TV shows.
"I realized there's so much opportunity with these video bloggers," he said. "YouTube has 1 billion unique monthly viewers. It's the second-largest search engine, after Google. It's more influential than Hollywood."
Lattrell decided to build a website where brands could create a marketing campaign or talk to a sales person, choose a budget and get listed on Grapevine's "marketplace," where YouTubers interested in advocating for a particular brand could apply to make a video in which they review its product or integrate the product into a video.
"It's the antithesis of what a traditional TV commercial is," Lattrell said. "We believe every company needs advocate marketing. You can't just talk to consumers as yourself. You need to have people talk on your behalf."
Grapevine works with the brand to choose advocates, using an algorithm that takes into account what types of campaigns the YouTubers have worked on in the past, the average age and gender of their viewers, and the percentage of those viewers who have clicked on a link to the brands in their videos.
Grapevine then sends the product to the advocates, without a script, to make videos that are usually about five minutes long.
"Our network of video bloggers get more than 200 million views per month," Lattrell said. "It makes the Super Bowl look like peanuts."
The brand pays Grapevine, which in turn pays the YouTubers between $50 and $30,000 per video.
"The best advocates make six figures a year and get up to 100 pitches from companies every week," he said. "They only promote the ones they really love because they need their viewers to continue to trust them."
Since 2012, Grapevine has worked with "thousands" of advocates and about 100 brands, including Walgreens, Groupon and the digital music service Spotify, Lattrell said.
Bryden Ferrato, marketing manager at Lip Monthly said the Chicago-based cosmetics subscription service has used Grapevine more than a half-dozen times.
"It's helped us find some good talent that's gotten us more exposure," Ferrato said. "Advocate marketing is more personal than traditional marketing. It allows the viewer to connect with the brand. They get to see someone else's experience with it. That goes a long way."
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