The Creator Economy is booming, and there are no signs of this ending anytime soon.
In a world where over 50 million people consider themselves content creators and contribute to an industry worth more than $100 billion and growing, brands are more than ever prioritizing independent creators as part of their brand awareness strategy.
But, what’s next?
Is there a formula for content creators to achieve more significant numbers?
Should every brand, regardless of size or budget, consider collaborations with content creators to reach more consumers?
And, most importantly, how to ensure your brand is not left behind regarding growth, engagement, and video marketing for the Creator Economy ecosystem?
We’ll answer these questions and many more over the next few lines.
What is the Creator Economy?
The Creator Economy could be defined as, simply put, the result of content creators profiting from their creations in (but not limited to) a digital landscape.
It could be a meme. Could be a static photo. Could be a video. Could even be an NFT.
The point is — the content creator and influencer earns revenue from their creation and keeps profiting from it over time.
Just like SignalFire says:
“It’s defined as the class of businesses built by over 50 million independent content creators, curators, and community builders including social media influencers, bloggers, and videographers, plus the software and finance tools designed to help them with growth and monetization.”
But, you know what’s more impressive?
The fact that it’s becoming an increasingly vital profession. Especially for younger generations. For instance… SignalFire, in their same article, continues a couple paragraphs below by saying:
“More than 50 million people around the world consider themselves creators, despite the creator economy only being born a decade ago. It’s become the fastest-growing type of small business, and a survey found that more American kids want to be a YouTube star (29%) than an astronaut (11%) when they grow up.”
29% of American Kids want to become a YouTube Star MORE than Astronauts when they grow up.
If THAT doesn’t tell you times are changing, we honestly don’t know what else could. But, why is this important for your brand, you might be thinking?
Because this is a clear sign that the Creator Economy is growing, and your brand could use its content and engagement insights to increase brand awareness…
Especially when it comes to video marketing to attract more consumers.
Why is the Creator Economy growing?
There are several factors contributing to the Creator Economy’s growth.
- More brands engaging in collaborations with content creators
- More marketing teams allocating resources to video marketing
- More talented professionals are dedicating their time, effort, and money to spark an industry that’s moving billions of dollars in revenue.
However, if we had to name the top 3 reasons why the Creator Economy is growing, we’ll go with the
- Rise of Internet usage
- Opportunity for new and more flexible formal employment opportunities
- Creation of short-form video content
Just like VdoCipher says:
“(The Internet’s) Wireless infrastructure and last mile internet reach are surely giving an economic boost to localized content to reach a global audience. In the next few years, we will likely see high volume growth in the creator economy.”
Ever since the pandemic outbreak, there have been massive job losses and an increase in countless job-seekers. Fresh graduates had to sit idle at home. Some of them jobless and creative artists became overnight sensations. In 2021 itself, the 50 million creator economy escalated to $14 billion. Creators now look for additional revenue sources and flexible job culture empowered by remote work technologies.
Video is now the most popular form of content on the internet, and people are continuously looking for new and interesting videos to watch. People love short-form video content as it is easy to consume and can be watched on any device. People watch short-form videos while on the go and are also more likely to share them with their friends. You can learn or get a good laugh within minutes by watching reels or short videos.”
Now that we’ve settled this, there’s a natural question coming right after…And that is:
What differences is the Creator Economy making?
Massive changes. Big, noticeable ones, to lesser known ones that are still remarkable and are changing lives.
Did you know that there are reportedly 2 million content creators worldwide making at least 6-figures month after month?
Or that as of 2022, there are as many as $21 million monthly payouts on Patreon?
This means that the Creator Economy is booming, and it supports the growth of millions of individuals and brands worldwide.
And here’s one of the most surprising facts that may be unknown to many people:
According to Influencer Marketing Hub, 96.5% of YouTubers don’t make enough money to reach the U.S. poverty line:
“One of the reasons for YouTube’s popularity with creators is that it has a sophisticated ad-sharing model. YouTube takes 55% of ad revenue and distributes 45% back to creators. The problem is that, as good as that sounds, you still need significant people to watch the native creator ads on your channel for you to make money. And, of course, most people opt to skip ads as soon as they can to watch you, the creator (which results in no income for the channel holder).
This means that for most creators, it’s nearly impossible to make a sizable income via dynamic creator platform ads. You need a substantial audience so that even a small percentage of viewers watching your ads makes a noticeable effect, or you need very supportive viewers willing to watch ads as a favor to you. The end result is that 97.5% of those who have a monetized Youtube channel don’t make enough to reach the U.S. poverty line, $12,140. Therefore, YouTube creators need to find other ways to supplement their advertising income.”
Meaning that… To make real money from platforms, content creators must produce exclusive content almost non-stop and drive viral-level engagement rates.
That’s the only way to make consistent returns and become an appealing option for brands to reach out for collaborations.
See the problem?
That’s exactly one of the many things Curastory solves in a nutshell.
Our revolutionary ad reads model bridges the gap between creators and brands by connecting them to produce binge-worthy ad read content within their videos and maximize ROAS, so everyone wins.
Want this for your brand? Just click here to get started and move one step closer to the ROAS promised land!
Is the Creator Economy impacting the Marketing Industry?
Without a single doubt.
What’s more — Forbes said it best here:
“…our latest report demonstrates increased consumer interest in creator partnerships, and how effective they can be when done correctly. In response to this, marketers are prioritizing the creator economy over other marketing strategies. In fact, the majority of marketers (74%) plan to invest at least a quarter of their social media budgets on content creator partnerships within the next three to six months.”
74% of marketers prioritizing content creator partnerships…
Experts in the industry say that the Creator Economy should play a paramount role in their consumer acquisition strategy.
29% of American kids want to become YouTube Stars instead of Astronauts…
If that’s not a clear sign that times are changing and brands should take the Creator Economy more seriously — honestly, we don’t know what else will, dear friend.
What is the projected future for the creator economy?
It’s hard to say.
However, recent studies and stats say that the Creator Economy is nowhere near slowing down.
And Rolling Stone interviewed three experts in the matter to debunk myths and bring clarity, so instead of predictions, we get facts:
Niche Content Is Here to Stay
Niche is the new scale. Social platforms and production tools will continue to improve, along with an individual’s storytelling ability, allowing seemingly small areas of interest to thrive and engage passionate and loyal audiences. This will create value for creators and brands. – Michael Klein, Trees Corporation
Community-Centric Marketing Will Continue to Grow
Aspirational is out. Relatable is in. The age of the macro-influencer is out, and micro-influencers — or what we term as “community-centric” marketing — are in. With the rise of community-based platforms like Discord, Reddit or OnlyFans, we will see the future of the creator economy based on the establishment, substance and growth of communities over social platforms. – Robbie Murch, BUMP
Businesses Will Be Forced to Adapt Their Benefits
Young people all over the world are realizing that all they need to make money is a phone and a Wi-Fi connection. It will be harder and harder for businesses to recruit talent for full-time positions because the majority of the workforce will prefer to freelance and have multiple revenue streams. This will force businesses to adapt by offering better pay and benefits in order to compete. – King Holder, PROCUSSION”
Want to get your brand up and running in the Creator Economy?
Then you’re at the right place!
Curastory is all about bridging the gap between professional creators and purposeful brands, and we’d be more than happy to show you the benefits of our platform and share valuable information to help you make an informed decision.
Come on, sit with us!
Again, a pleasure sharing these last minutes with you. And thanks for reading!
— The Curastory Team