There’s a new platform on the block, and Elon Musk is a fan. But what is Clubhouse all about, and what does it mean for the digital ecosystem?
New social platform Clubhouse has attracted extensive press attention recently. Dubbed part-talk back radio, part-conference call and part-house party, it’s an audio-only app, through which users can listen to conversations, interviews and discussions. But unlike other social apps, Clubhouse retains an air of exclusivity; users can only sign up once they’ve been invited to join by an existing member. Launched by Silicon Valley entrepreneurs in 2020, it came rapidly to mainstream attention when Elon Musk hosted an online chat. Today, Clubhouse has 2 million active users and is worth $1b, giving it the unicorn start up tag owned by other tech successes such as AirBnB and Uber.
Some of the functionality offered by Clubhouse has already been copied by Twitter Spaces, and the platform has confirmed recently that it will be launching a paid creator model similar to those of You Tube and Tik Tok – this is already being beta tested, and will be something advertisers will want to keep an eye on. Social platforms are continually evolving, with younger audiences keen to be part of the growth of the next platform on the block, and new opportunities for advertisers arising with this evolution.
The sudden growth of the platform, coupled with the fact that Audio, podcasts and ebooks have seen significant growth in the past year will make Clubhouse an interesting potential proposition for brands both for placing content and if it decides to carry advertising in future. However, it is still in its infancy and as its popularity grows moderating and controlling content that is shared is a challenge. All social platforms have this conundrum and even the biggest players in the market have not managed to overcome this. This is not an immediately viable route for brands until we, as advertisers, are sure that the proper checks are in place and that it is a safe and ethical environment. In the meantime we would advise clients, to set up a profile in the short term to give them the best opportunity of reaching their audience when commercial opportunities are introduced and this will also allow them to grow their owned channel mix. Generation Media are in the club so get yourself on the guestlist and watch this space for a Generation Media Clubhouse event coming your way soon .
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Written by Felix Lewis, Associate Director of Digital