I’m sure over the years you have noticed the way social media has taken off and made its way into people's everyday lives. The media is so much bigger than anyone can imagine, with over 200 million creators, 4 million of those creators having over 100,000 followers.
With such a fast-growing economy, the creator economy is one of the most effective marketing tactics. All the amazing content creators using platforms like YouTube, Twitch, and Etsy, as well as all the creators making podcasts, movies, music, and e-commerce, have revolutionized the marketing world. Now the creator economy is worth an estimated 104 billion dollars. This development in the industry has made it essential for business and commerce.
In 1996, Bill Gates predicted that in the future “Content is King”. In this essay he wrote, he describes how “Content is where I expect much of the real money will be made on the Internet, just as it was in broadcasting.” And well, he was right. This fast-growing economy will have over 207 million content creators in 2023 alone, with only 45 million of those being considered professionals. 30% of 18 to 24 year olds consider themselves content creators, as well as 40% of 25 to 34 year olds. There’s around 40 million users with over 1000 active followers on Instagram alone.
You can see the copious amount of people embracing their passions and using media to make a living off of them. The strategies, skills, and talents put into media give anyone the opportunity to make or spark their career. Creators can build communities to support them in their art, and with the engagement and support, it brings in a bigger outreach to grow.
What is the Creator Economy?
Anyone who creates any form of content falls into the creator economy. Every Instagram post, audiobook, YouTube video, podcast, or live stream; anything that is created, consumed, or distributed in the digital world is part of the creator economy. Social media is one of the biggest contributors to the creator economy.
The creator economy allows ordinary people to share their messages and passions with the world. People can market their content and build an online community of people to interact with and support their pursuits. When this content is monetized, the creator can make money from it, and this starts the cycle. Brands can also work with creators, usually bigger creators, but any creator can be sponsored or have a partnership with companies to further promote their content and meet the brand's needs.
Content Creator or Influencer
The first thing we need to know to understand the economy is: what exactly is a content creator? People tend to use influencer and content creator interchangeably, but that's not actually right. Content creators create content that is targeted at a specific audience with a promotional, informative, or entertaining intent. They let their work be their brand rather than making themselves a brand. While influencers are the people promoting things because of their personalities, they are also the face of their businesses.
One way to differentiate the two is by asking yourself: does the person delivering the message make it effective, or is it the product itself that I like? An example of this is when a YouTuber promotes a game by talking about how much they liked it. The game might be exactly what you want, but the person delivering it to you is the reason you want it. If you saw an ad for it where it was marketed as something on its own, would you still want it?
Content creators may also be influencers; however, not all influencers create their own content. Popular names on social media can be either, and as it is such a fine line, it can be difficult to separate the two. Any content creator can become an influencer with the right following. Monetized and skilled content creators who make a name for themselves can turn that into their career and make a living off of it. Their skills can be formed beforehand through training or schooling, or they can be spontaneously made and improved through their work.
If you’re a business that wants to know how to find and hire the top content creators to grow your brand, you check out this article which has a lot of helpful information on that topic.
Common roles in the creator economy
Going off of the influencer topic, there is a lot more than just the creators that go into this economy. The people behind the scene are just as important to making it work.
Content created by influencers is one of the easiest markeing tools, but with that having the right influencer is important. There are a few different typesof influencers with various styles and effects to any given audience.
As content creators can become influencers, audiences tend to pay more attention to their opinions and advice on what to do in their own lives so they can be more like their favorite creators. They are some of the most influential people ever, as their content has such an impact and is constantly a click away.
Key Opinion Leaders, also known as KOLs, are people who have credentials in a particular field, making them experts. There are people like this on social media who post content about their field, provide information, or entertain people with content relating to their field. Some examples are doctors, vets, coaches, police officers, and many more. A doctor can create reaction content and say their opinion as a doctor on the situation or promote products they enjoy using, and it looks more reliable as they are actually a doctor and have the knowledge to know that product is the best option.
Brand ambassadors are influencers with a closer relationship to the brand. They might receive PR packages for free from the brand that they can open on their social media and promote the products at the same time.
Affiliates are commission-based creators. They receive things like payment or a free product for selling the brand's products. They can pair up with the brand to set things up in a way that's a little more relaxed and doesn't need to be as much of a commitment to the brand.
Customer advocates are the smaller creators; typically, they are the people with a stronger connection with their very active, loyal community. They share a common interest and can encourage brand loyalty simply because the whole community uses it.
Another form of content creator is the producer. A producer for a company is usually someone who loves creating anything and everything. They can be used to diversify the content they put out and experiment with different types of content. They can use all this content over and over again to keep pushing promos. This type of content creator is most common with direct-to-consumer brands, where they can upload it all to their social media accounts at their convenience and schedule. This is cheaper and more diverse for these brands.
The last type is celebrity content creators. Anyone who comes from an outside source of fame, such as movie actors, athletes, or authors, can start a social media account to show their irl (in real life) content and promote their projects and favorite products. This means they will already have the influence and fame to impact people's decisions. Creators who also have over 1 million followers are considered to have celebrity status. This also means they have a bigger reach, impact, and effect on people.
Managing Content Creators
Brands need to think about the content creators they work with. Not having a hundred content creators to pay and manage is more efficient for them, but having only a few might not be enough. Looking at the types of content creators, the audiences that come with those content creators, and the engagement rates they get will help pick which ones are the best options.
Searching for keywords or phrases will help filter the creators on the site you are looking for, giving you the best options to choose from. Reaching out to a few creators will be best, as some might not line up with your views and some might not be looking for partnerships.
There can be different types of hires, apart from content creators and influencers themselves.
Recruiting and onboarding people are those who make clear contracts and communicate with the content creators since the creator must integrate the brand's promotion into their content in ways that reflect both of them equally.
Relationship management helps the creators reflect their strengths and allows them to be a bit more creative with the promotions.
Campaign workflow managers look at the number of content creators the company is working with; this means the creators aren't affected, but the company is watching the numbers.
Product fulfillment is in charge of the inventory and watching the products go out for creators. Influencer payment is carefully managed, as product sales, commissions, and fees are all incorporated into this. They also must watch dates for when to pay the influencer, as if they are late or forget, it may have significant effects on their relationship with the creator.
How has it changed?
Now, in 2023, the internet has been vastly different since the beginning, so marketing and business have changed too. Social media has developed into a tool for businesses to promote themselves and find better ways to advertise.
Now that the internet has developed into the amazing resource it is, people can more easily start their own businesses and projects. The content that ordinary people without experience can create diversifies the industry and increases consumption. With there being so many styles and niches for people to experiment with, content never runs out. Creative endeavors are also not limited to being simply videos or photos because podcasting and live streaming are rising in demand too.
There are also far more tools to help you make what you need to make. The options are endless.
Comment Sold is a site made to help you sell products on social media.
Amazon Live can sell products from streams.
Karat is a digital marketplace.
Fourthwall is a virtual reality platform that can showcase work.
LTK monetizes social media content and is mainly focused on lifestyle content.
Kajabi is an online course site to help teach you a variety of topics of your choosing.
These are just a few of the many tools you can look into to help you grow as a content creator or just look around as a customer.
Being Authentic
Lifestyle content is ever-growing and becoming more and more popular, creating a bigger market for original, personal content for the audience to connect to the creator on a deeper level. Vlogs, BTS (behind-the-scenes), and podcast content, along with unique, authentic content, do far better now than they did in the past.
Audiences can tell when the content creators they watch are genuinely passionate or invested in their content. If ideas are new and innovative, it shows in the content. Creators who just follow trends and old ideas will be boring, as they aren’t putting their hearts into the content the way a passionate new creator would. Being authentic, even if you are second-guessing if anyone will be interested, is better than doing something everyone has already seen and gotten over.
Content creators can use these fresh, innovative ideas to their advantage too, because brands see the pre-established fanbase of genuine people enjoying the content as more impressive than inactive followers. Brands bringing in content creators like this establishes relationships and networking for promotion.
The passion of the content creator shown in the promotional content makes it seem more genuine and convincing, leading to better sales of the product. The content creator makes it resonate better with the audience that way, and it benefits everyone involved.
How Does Technology Encourage Growth Of The Creator Economy?
First of all, the creator economy would be almost nonexistent without technology. Creators depend on the platforms they use to make their content. All the platforms used to post their content are essential to their job and sharing the content they make. Instagram, TikTok, YouTube, Twitch, and Etsy, just to name a few. There are tools they use, such as Adobe Creative Cloud, Photoshop, or other photo and video editing platforms, that allow them to create what they want to create.
Technology like cameras, laptops, drawing tablets, and microphones helps creators create every day. Without the technology to support creativity, the creator economy would be boring, and not many people would actually care.
Where is it going?
The creator economy is continuing to grow and is expected to nearly double from the current $250 billion dollar economy by 2027. As it expands, it creates a better mix of freelance jobs and 9-5s. The gig economy is skyrocketing into a much more common way of working. With the rise of content creators, influencers, and celebrities contributing in some way to the industry, there is less demand for people to be in an office five days a week. The COVID-19 pandemic proved the power of working from home.
The Gen-Z generation has already shown a significant interest in content creation, so as they get jobs and start to figure out what they want to do with their lives, we might see a huge peak of content creators. Amateur and professional qualifications used in content creation aid in bringing up the popularity and demand for these roles. By bringing in the different niches, new ideas and common interests in content creation and freelance jobs are predicted to overtake the typical 9–5 of the present world. People enjoy the flexibility, diversity, and enjoyment that come with having something less structured.
The strategy of the industry
One strategy that is very common for anyone working on building up a foundational fanbase or community for their business is the funnel method.
The goal at the top of the funnel (TOFU) is to introduce the brand and begin to broaden your reach to new audiences. Giving people a base to gain interest in your brand and eventually spread the word.
Increasing your brand awareness is not as hard as you may think. Of course, it's not a guarantee of how much you will gain, but there are things you can do to encourage growth.
More creators
This will expand the number of viewers you get and increase your reputation by being shown everywhere.
More posts
With more posts and diverse types of posts, you are showing your brand in a multitude of ways, giving your company the best chance to have the most traction.
Creator reach
The creators you work with can use their marketing strategies that work with their viewers to help push the brand more.
Followers on brand pages
Having your own numbers helps immensely.
Users making their own content
People on their personal accounts can make videos talking about the brands they like, and though they do not have a large following, they can still be some of the most influential.
In this first step, getting your creators to make specific content to help further the reach, you will notice the difference. Unboxings, blogs, vlogs, branded hashtags, linked products, and mentions will all directly push the product.
The middle of the funnel (MOFU) is when you are trying to get your brand to be at the forefront of people's minds by adding that level of integrity and common knowledge so people will share your service or product. This is the educational step where possible consumers are learning why your product or service is the right choice over other options.
You want to cultivate an audience that depends on your brand. To do this, you need to consider a few things along with taking it into your own hands. The following points might help you consider what is important:
Paying attention to engagement rates
Finding what type of content makes views go up or down and following along with that. You want to work with the audience, and if you are growing from videos over photos, you might want to try doing more videos.
The ratios of likes and dislikes or positive and negative comments
You want to listen to your audience's criticisms. If people aren't liking the content you are putting out, changing it up a little might be what you need.
Quality engagement
Check the analytics often because you will see if people are just scrolling past, actually watching, or engaging with the content. You want the most from people, as that is what will push your content through the algorithm.
Following size
Growing a following of millions of people is not always a necessity. Yes, it is helpful as many people are on your page, but you also want to have an engaged audience. Pushing your content on bigger creator pages will do better than for small creators, as there is more audience per creator.
The type of content you want here is more informational or influential. Content with BTS (behind the scenes) looks into the product or company, giving customers a more personal experience of getting to know and relying on the brand. How-tos, Q&A’s or FAQ's, and informational streams or videos where customers can get questions answered are really helpful.
Seeing the product in action or getting to know the brand better adds security to it. You can even do contests or giveaways to get real people working with the product. People really like the idea of getting things for free, so by playing into human psychology like this, you are effectively promoting the things you offer.
Lastly, at the bottom of the funnel (BOFU), the main goal is to ensure all the viewers become consumers. You want to try to get as many customers as possible at the bottom of the funnel because this is where the audience gets figured out. Are they here because they are interested in the product, or are they here because they liked the content? You can deliver certain types of content to convince the remaining people to buy your product.
Having all the things that make it easy for people to get your product or service makes it much easier for people to purchase from you. Between impulsive purchases and thoroughly thought-out purchases, you want them to be easy to get a hold of.
Clickable links
Having an easy-to-see link to lead people directly to your page makes it easier to find exactly what they want. If the consumer just watched a video with a product in it they now want, a link in the bio or pinned comment will make it easy to quickly find and purchase.
Subscriptions
By having people subscribe to sites, emails, or newsletters, they will always be up-to-date on information and see new updates or products they can jump on.
Leads
Things relating to items or subjects your audience is interested in will help bring more interest to your product. If you are making a product with a customizable option or specific design, having it relate to a fandom your audience typically releases to will help push the interest in your product. An example of this would be a game controller with popular characters from a game on it.
Discount codes
Discount codes are typically seen as a specialty that not everyone gets. Seeing that you are the small majority selected to use this code encourages people to want to take the opportunity.
Sales or deals
Similar to discount codes, making things cheaper than normal gets people excited as it means they will have more benefit from getting the product or service than they would normally. Some people might be considering your product, and seeing it is 15% off will be the driving factor in getting them onboard with the purchase.
Influencer specials
An influencer promotion of a company is already a helpful tool, but giving them something to help their fans out is an added bonus. By combining the interest with the product and giving a special offer to their favorite topics and creators, audiences are more likely to jump on the opportunity that their favorite influencer is giving them.
As mentioned before, influencers are huge influences on the promotion of a product, so getting them to do content about your product adds to the benefits. Reviews, direct messages from the creator, and special offers will encourage this further.
Having a better touch point with customers leads to an improved customer experience and a better relationship with the audience. Everything leads back into a cycle of improvement.
Most social media sites have tried to update their platforms marketing tools. Instagram, TikTok, and Facebook are just some examples of platforms that have developed a marketplace or shop feature, making it easier for brands and influencers to work together and continue to use their platforms. The whole industry depends on each other for these things and makes a profit from pairing up.
Fun Facts
Some fun facts to think about when considering your part in the creator economy:
Anyone has a chance to be a content creator, with no major split between men and women (52% men, 49% women, and 1% identifying differently).
Right now, only 13% of content creators are Gen-Z. The market is being opened to them, but people of any age can create content. 15% are boomers, 30% are Gen-X, and 41% are millennials. This means there is the least amount of Gen-Z at the moment, but this is expected to change in a few years.
Around half the people who make content use it as a way to express themselves rather than as a way to make money. Additional 66% of creators have other jobs. Content creation is not a main source of income for a lot of creators, as you don’t have dependability when you first start, and you need a strong basis to earn enough. More than half of all beginner creators make $100 or less in a year.
On average, across all creators, it is estimated that they earn $59 an hour. This number won’t be accurate for everyone, as it is vastly different from creator to creator.
Around 48% of users on social media say they would consider purchasing a premium subscription.
There are twice as many people looking for educational content than there are peopole looking for entertaining content. Along with that, 2 out of 3 people spend some time every day learning something, and in younger generations, that number increases to 4 out of 5 people. Educational content is on the rise.
Conclusion
In conclusion, the creator economy has a variety of unique opportunities for anyone of any age and any status to dive into. The enhanced job opportunities and niches that push beyond the normal job scene make it such an important part of our society today. The ever-evolving role and impact the creator economy has on the world makes it an important thing for businesses to utilize to their advantage. With a lower cost and better effectiveness, content creators are some of the best tools to promote a brand, so learning more about the future of the content economy is important to know where it will go and where to invest your time.
Written By Ali Grant
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Jony Studios is a client-focused media production studio offering audio/video production, B2B podcasting, and audiobook services. They have worked with a wide range of clients from small businesses to larger organizations such as Penguin Random House, Amazon, University of Waterloo, Freakonomics Radio and many others.
