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For a long while, big media companies controlled our views of entertainment and news and there were only a small number of small media companies. However, with the evolution of the internet, control has changed. The internet has become such a staple in our everyday lives and over the past few years we have seen the development of both traditional and digital media. With this came the rise of the creator economy, an economy created by creators. Nowadays, most content isn’t owned by big companies but is produced by everyday people. But just how big is this group of everyday people? What is the Creator Economy market size?
Whether that be from their basic bedroom setup or from a single device, it allows people to find passions in making content themselves and sharing it with the world. With this content, people are then using it to make money.
In the past year, the arrival of COVID-19 saw a downfall in many industries but for the creator economy, it proved to be stronger than ever. With lockdown laws in place, people were stuck at home and more and more were searching for content to pass time and keep entertained.
It saw creators searching for new ways to create content and providing them with an opportunity to boost their followings and stand out from the rest.
Areas of the Creator Economy
Attracting multi-billion dollar attention, the creator economy market size is proving to grow at a great pace and there are multiple companies that exist to power the economy. Wanting in on such a booming industry, companies have developed administrative platforms, from content creators to content management tools, companies are adding value to further boost the sector.
In order to get across the economy, it can be divided into different areas.
1. The Creators
In order to have a creator economy, there have to be the creators themselves. These people make a living off creating appealing content such as pictures or videos to share with interested viewers. Over 50 million people worldwide are considered to be online content creators or influencers, of these 46.7 million are considered micro-influencers.
This means, more than 2 million people are earning enough to turn content creating into their full-time job. Micro-influencers still make income from their content however it isn’t enough for them to quit their day job and do ‘influencing’ full time.
Micro influencers are proving to be invaluable to modern social media marketing. Learn why here.
2. Audience Curation and Creator Tools
Audience Curation and Creator Tools are a crucial part of the creator economy. They are the platforms that help enable creators to build their audience through producing and editing content such as photos, videos or podcasts.
This area can be further divided into sub-categories including:
- Audio Chat: Platforms that allow creators to engage with their fans and interact with them one on one, like a phone call.
- Newsletters: Platforms that allow creators to produce written content
- Event platforms: Allows creators to host their own events
- Live Streaming: Platforms that allow creators to go live to their audience
- Design tools: Assist creators with editing their content
Brands should take advantage of these tools when working with Creators or running their own accounts. See how to optimize your brand accounts on each platform here.
3. Audience Monetization and Platforms for Monetization
Companies in this area take up a chunk of the creator economy, as they tend to be what connects the creator with the brand or audience.
These platforms allow content creators to monetize their audience and make money out of their content. From Instagram and YouTube to new platforms such as Only Fans and TikTok, these platforms also allow creators to monetize directly. Of these, 72% of creators prefer Instagram as their main channel and therefore, Instagram comes out on top as the number one platform for monetization.
However, there are third-party platforms (off-platform monetization tools) that support creators by helping them turn their following into super fans including:
- Courses: Platforms that support creators to launch their own courses
- Subscriptions: Platforms that help creators launch subscriptions to allow fans access to exclusive content
- BlockChain: Companies that leverage blockchain technology to allow creators to monetize their work
- Brand Deals: Platforms that automate the management of creators
- Merchandise: Platforms that allow creators to sell merchandise to their fans without having their own supply chain
- Fashion Marketplaces: Allows fans to purchase items previously owned by the creator
- Fan Interactions: Platforms that allow creators to become closer to their fans and vice versa. These can include a fee.
Looking to run an epic influencer marketing campaign in the Creator Economy? NeoReach has the best experience in creating viral campaigns that convert on social media. Sign up here!
4. Community Management
These tools support creators in managing their audience. These include:
- Community tools: Tools that allow creators to engage regularly with their fans through monitoring mentions, direct messages and comments.
- Link in Bio: These allow creators to add all of their links into one site
- Membership payments: platforms that support regular payments in exchange for a service
With ad monetization and brand deals in place for most creator content. These companies offer financial solutions and advice to creators.
7. Immeasurable Areas
All these platforms above help creators not only bring out the best content for their audience but also engage with them and build a connection. In the end, there are immeasurable parts of the economy that have a huge monetary value.
These include superfans who are extremely engaged with creator content. Without the support from the audience, the creator wouldn’t be getting any income. It is hard to measure who is a superfan and who is just a follower.
That’s why it’s always important for creators to always bring out the best content to develop superfans. As they will go out of their way to support and promote them, allowing creators the ability to rely on them, and what’s more credible than support that is earned and not paid?
Want to know more? What better way to learn about the Creator Economy than from the Creators themselves. Check out our in-depth report here.
The Creator Economy Market Size
It’s safe to say that the development of social media has played a vital role in building the creator economy. Everyone you see nowadays has some type of digital device on them and is most likely signed up to a form of social media. It has become such a powerful and easy way to distribute content to an audience.
The creator economy can be attractive due to its flexibility and the ability to build your own brand. As internet speeds became quicker, so did the economy itself.
An additional $850 million has been invested into the industry during 2020, the creator economy market size is growing faster than before. When paired with influencer marketing the industry is worth $13.8 billion in 2021.
When estimating the market size different factors should be taken into account. These include social media platforms, influencer marketing, start-ups and the creators themselves to name a few.
So far, this industry consists of over 50 million creators and over 500+ new start-ups.
With extensive research, NeoReach predicts that with new start-ups in the industry the creator economy market size is set to grow up to $104.2 billion.