How Stake Turned X Community Notes Into An Advertising Advantage

Stake, an online casino platform, has created a clever advertising approach on X (formerly Twitter).

Their strategy is adding their logo to viral videos shared by popular influencers and creators.

It is less obvious but you can see their logo on this creator's videos.

Stake places its logo strategically on videos, especially those from sports and entertainment influencers.

These videos often appear in a 1:1 ratio format, making them perfect for X's feed display.

While some posts clearly mark themselves as advertisements, many blend naturally into regular content.

Only few smart ones notice its an ad.

Sometimes they do put a watermark with THIS IS AN #AD as you can see in this X Post.

They pay influential streamers and creators with massive followings in a sport as it matches Stake's target audience for gambling.

The Community Notes Advantage

Recently, Stake has been using X's Community Notes feature as an advertising tool.

Community Notes is a new feature on X that allows users to add context to potentially misleading posts collaboratively.

So if someone posts a fake post or misleading ad, then X users can call it out. It is a collaborative effort so many people have to agree on it before it goes live.

It has become an unexpected advertising tool for Stake. Here's how it works:

• Users flag Stake-branded content as advertisements through Community Notes

• These notes create double notifications for users who interact with the posts

• People who see the notes often search for Stake out of curiosity

• This generates additional brand awareness at no extra cost

There are many videos on X like these that have Stake Ad community notes.

Stake doesn't buy the copyright for these videos to promote their platform but instead just sticks a watermark to it.

They can do it as the fine would be negligible compared to the impressions they get.

Stake's revenue shows remarkable growth:

• 2020: $105 million

• 2021: $1.2 billion (1042.9% increase)

• 2022: $2.6 billion (116.7% increase)

• 2023: $4.1 billion (57.7% increase)

Stake's approach is cost-effective:

• They target videos that are already trending

• Their branded content regularly receives 4+ million views

• Daily impressions often exceed 50 million

• The advertising cost remains relatively low compared to their revenue

Anyone who hasn't heard of Stake will search for it when they read the Community Notes.

Stake's ability to turn community notes into a marketing opportunity demonstrates innovative social media marketing.

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Rabbit Holes

1. How I made $279k+ Through Snapchat Shows by Mason Rizzo

2. Turning $35K to $1.75M (50X) in less than a year by Kevin Xu

3. StackBlitz achieves $4M ARR in 4 weeks for their AI web development platform with Claude by Anthropic

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