“Dude Perfect Just Hit the Jackpot.”

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But, how can one justify $100 MM in investment for 5 guys making silly videos?

What does it tell you about the industry?

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And most importantly, what can you learn from this deal?

In this article, let’s answer these questions. 

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What’s the Deal All About? 

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Dude Perfect, a popular comedy and sports channel on YouTube, recently secured a $100 million private equity investment from Highmount Capital. 

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The team says the capital will support the expansion of their operations beyond their traditional online video presence.

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The Big Question

But why on earth would any seasoned investor bet $100 million on a bunch of guys who make silly videos on YouTube for a living?

To answer this question, let’s take a quick look at history - 

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The first TV commercials were just radio announcements read out loud.

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When the Internet first came around, the earliest ads were just like print ads but placed as banner ads online, and the first video ads on the Internet were just old TV commercials.

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You see, every time tech evolves, advertising and content need to adapt, but it often takes several years for marketing to adjust. Large companies move slowly so the creative is passed from old platforms to new ones with lackluster performance.

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Until someone figures it out and new creativity flows giving birth to modern-day TV ads for example. 

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Sure, brands have shifted and placed serious dollars in Social Media--that’s old news.

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But, they have yet to adapt to the best creative that will truly connect with their audiences on social media and YouTube.

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Why Are Most Brands Struggling? 

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Most brands need help to reach their fullest potential because they still use outdated advertising methods. 

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Modern consumers prefer authentic, creative, and interactive content, especially younger ones. They favor brands that can engage them on their preferred digital platforms with personal and relatable content.

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Platforms like TikTok, YouTube, and Instagram Reels cater to this need by offering short, impactful, and visually engaging content that traditional advertising often lacks.

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That said, working with creators like Dude Perfect can be an excellent move for brands that want to stay relevant and reach more customers.

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It is the Creators (aka influencers) who are ushering this movement in, as their audiences are scaling faster and faster while most large and emerging brands are still trying to figure it all out. 

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Creators hold the ticket to allowing brands to make the next jump from both a strategy and execution perspective.

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If you would like to increase awareness and sales for your brand through viral social media content with leading creators, drop us a note, we’d be happy to chat. 

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