Creator economy

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The creator economy or also known as creator marketing and influencer economy, is a software-driven economy that is built around creators who produce and distribute content, products, or services directly to their audience, leveraging social media platforms and AI tools. [1] These creators - who may include social media influencers, YouTubers, bloggers, artists, podcasters, and even independent professionals - generate revenue from their creations through a variety of monetization strategies, including advertising, sponsorships, product sales, crowdfunding, and subscription-based services. According to Goldman Sachs Research, the ongoing growth of the creator economy will likely benefit companies that possess a combination of factors, including a large global user base, access to substantial capital, robust AI-powered recommendation engines, versatile monetization tools, comprehensive data analytics, and integrated e-commerce options. [2] Examples of creator economy software platforms include YouTube, TikTok, WFCN, Instagram, Facebook, Twitch, Spotify, Substack, OnlyFans and Patreon. [3] [4] [5] [6] [7]

Contents

History

In 1997, Stanford University's Paul Saffo suggested that the creator economy first came into being in 1997 as the "new economy". [8] Early creators in that economy worked with animations and illustrations, but at the time there was no available marketplace infrastructure to enable them to generate revenue. [9]

The term "creator" was coined by YouTube in 2011 to be used instead of "YouTube star", an expression that at the time could only apply to famous individuals on the platform. The term has since become omnipresent and is used to describe anyone creating any form of online content. [10]

The creator economy consists of approximately 50 million content creators, [11] and there are just over 2 million who are able to make a career of it. [12] The biggest names are those such as TikTok star Charli D'Amelio, [13] PewDiePie and Addison Rae.

A number of platforms such as TikTok, Snapchat, YouTube, WFCN, Tiki and Facebook have set up funds with which to pay creators. [14] [15] [16] [17] [18]

Criticism

The large majority of content creators derive no monetary gain for their creations, with most of the benefits accruing to the platforms who can make significant revenues from their uploads. [19] As few as 0.1% of creators are able to earn a living through their channels. [20]

See also

Related Research Articles

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In mass communication, digital media is any communication media that operates in conjunction with various encoded machine-readable data formats. Digital content can be created, viewed, distributed, modified, listened to, and preserved on a digital electronic device, including digital data storage media and digital broadcasting. Digital is defined as any data represented by a series of digits, and media refers to methods of broadcasting or communicating this information. Together, digital media refers to mediums of digitized information broadcast through a screen and/or a speaker. This also includes text, audio, video, and graphics that are transmitted over the internet for viewing or listening to on the internet.

<span class="mw-page-title-main">User-generated content</span> Online content created by users

User-generated content (UGC), alternatively known as user-created content (UCC), emerged from the rise of intelligent web services which allow everyday users to create content, such as images, videos, audio, text, testimonials, and software and interact with other users. Online content aggregation platforms such as social media, discussion forums and wikis by their interactive and social nature, no longer produce multimedia content but provide tools to produce, collaborate, and share a variety of content, which can affect the attitudes and behaviors of the audience in various aspects. This transforms the role of consumers from passive spectators to active participants.

<span class="mw-page-title-main">Influencer marketing</span> Type of social media marketing

Influencer marketing is a form of social media marketing involving endorsements and product placement from influencers, people and organizations who have a purported expert level of knowledge or social influence in their field. Influencers are someone with the power to affect the buying habits or quantifiable actions of others by uploading some form of original—often sponsored—content to social media platforms like Instagram, YouTube, Snapchat, TikTok or other online channels. Influencer marketing is when a brand enrolls influencers who have an established credibility and audience on social media platforms to discuss or mention the brand in a social media post. Influencer content may be framed as testimonial advertising, according to the Federal Trade Commission in the United States. The FTC started enforcing this on a large scale in 2016, sending letters to several companies and influencers who had failed to disclosed sponsored content. Many Instagram influencers started using #ad in response and feared that this would affect their income. However, fans increased their engagement after disclosure, being happy that they were landing such deals. This success led to some creators creating their own product lines in 2017. Some influencers fake sponsored content to grain credibility and promote themselves. Backlash to sponsored content became more prominent in mid-2018, leading to many influencers to focus instead on authenticity.

Social network advertising, also known as social media targeting, is a group of terms used to describe forms of online advertising and digital marketing that focus on social networking services. A significant aspect of this type of advertising is that advertisers can take advantage of users' demographic information, psychographics, and other data points to target their ads.

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<span class="mw-page-title-main">Social media marketing</span> Promotion of products or services on social media

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<span class="mw-page-title-main">TikTok</span> Video-focused social media platform

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<span class="mw-page-title-main">Pearpop</span> Social Media Collaboration Platform in Los Angeles, CA United States

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References

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