What is the Creator Economy?
Being an influencer went from being met widely with eye-rolls to a mainstream profession in a very short period of time. What once seemed inaccessible and distant is now a viable job that millions worldwide work full-time. According to The Economist, there are over 50 million social media content creators who consider themselves creators as their full or part-time profession.
These people are part of the creator economy, a massive global network of people who make and distribute content on various platforms for money. Whether their monetization comes in the form of advertising revenue, subscription money, or cheques from the platforms themselves, many of these creators are receiving enough to live comfortably.
The creator economy is everywhere, with influencers on more platforms than can be named. From conventional content platforms like TikTok, Instagram, and YouTube, to rising subscription models like OnlyFans and Patreon, the opportunities available to people in the creator economy are endless.
According to the same report by The Economist, the creator economy is worth over $100 billion globally. This is because the creator economy isn’t just the content creators on the platforms; it is the entire ecosystem built around them. It includes everyone from the influencer marketing firm that provides marketing opportunities to the creators to the agencies set up to help creators reach larger audiences.
We live in a time where fame is more accessible than it has ever been. Anyone can go viral on the internet and achieve celebrity, even if it is for a short period of time. The internet is a great connector, a place that makes it easier to see and be seen. The creator economy is the natural side-effect of this. It is the massive ecosystem of people using the reach of the internet to its full potential, leveraging their talents to try and land a cushy career as an online content creator.
The Creator Economy and Influencer Marketing
Influencer marketing is a pivotal part of the creator economy. While there are a rising number of websites that allow influencers to receive money for their content through paid subscriptions, the primary model for creators to receive payment is through influencer marketing. On platforms like YouTube, Instagram, and TikTok, the money creators receive for views and subscription pales in the face of the revenue they can generate by promoting products.
Whether it is a micro-influencer marketing agency or an influencer marketing firm that only works with top mega-influencers, the creator economy is often defined by brands and agencies forming partnerships with creators. This is a proven model that works for both businesses that need to boost products to a wider audience and influencers that need to find a way to capitalize on their reach.
Influencer marketing is ideal for brands to use the creator economy to benefit them. It has a significant ROI, with Shopify showing that the average ROI of influencer marketing is roughly $5.78 for every dollar spent. It is also a great way to generate brand awareness and website traffic. The creators people follow are people they trust and have formed a strong connection with. Using their platform to benefit your business is a great way to cement your place as a brand utilizing the creator economy to its full potential.
What does the Future of the Creator Economy Hold?
The creator economy is a relatively new invention, a modern creation that directly results from the accessibility that the internet provides. The internet and the creator economy aren’t going anywhere and will only continue their rapid growth. This ecosystem, while very developed, has not been fully tapped yet, and likely will not be for many years. As new platforms emerge, more space is carved out in the creator economy. It wasn’t long ago that TikTok influencer marketing seemed a novel concept. Now, it is a staple.
What will continue to define the next decades of the creator economy is the love younger generations have for it and their desire to be a part of it. According to a major poll that was touted by CNBC, in a significant survey of children in the U.S and the U.K that set out to ask what their dream job would be, the most common answer in both countries was a vlogger/YouTuber. Roughly 30% of children surveyed in both countries chose this option.
That is because this generation is raised on social media and YouTube. The major influencers they see every day are their heroes, the new movie stars and celebrities, but a much more consistent presence. People feel like they know and can trust influencers, and it makes perfect sense that the younger generation should want to be like them.
The creator economy will only continue its massive growth over the next decades. With so many platforms, from Twitch to TikTok, that offer avenues to success, creators will continue to emerge at a rapid rate. In turn, the economy that enables and benefits them will continue to grow around them.
If you’re looking to take your influencer marketing to the next level, partnering with Influence Hunter is a logical next step. Influence Hunter is a team of experienced professionals that have helped brands across industries launch high-performing customizable campaigns that deliver on strategic goals. Contact us today to find out how we can help your business.