How are brands growing and glowing with the creator economy?
It all began in the 18th century. Commerce & trade started booming, globalization was no longer a pipe dream, and all this marked the start of the era of the industrial economy. Since then, there have been many economies that have emerged which mark the advancement of world trade and economics at large.?
When it comes to media, the making and sharing of music, art or movies years ago was largely controlled by a few heavyweights of the industry. The entire industry was highly centralized, and in many cases access to entertaining content was limited and sometimes nil. But as the internet emerged and gained popularity, things began taking a turn for the better. The internet changed things. It was a slow, almost insidious process, but over time, media decentralized.
And with this shift was born the creator economy.
The Creator Economy refers to the class of businesses built by independent creators and the companies that serve their needs. Independent creators include? self-employed individuals, vloggers, bloggers, social media influencers, writers, artists, and anyone else who monetize their knowledge, skills, or creations.
The data and the state of affairs in the media industry certainly suggest that there’s a lot of hype surrounding the creator economy, and creators are benefiting immensely from the boom.
But how do companies benefit? Let’s find out!
Traditional advertising mediums eat up a huge chunk of a brand’s budget. This in turn increases a brand’s CAC (customer acquisition cost), that is the amount of money a company spends to gain a customer that makes a purchase. Hiring creators to do their advertising is much more affordable for companies. Companies can hire creators based upon their needs, budgets and target audience, and decrease their CAC.
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To run an advertising campaign through traditional mediums such as television or billboards requires the effort of a lot of people. Content writers, designers, producers, actors, editors, broadcasters; a huge team is required for any advertisement.?
Creators are an all inclusive deal. They themselves make the content, themselves shoot and edit, and they themselves are the broadcasters. The whole campaign becomes easy for the company to execute!?
Working with creators ensures a sizeable reach for their advertising content. The company doesn’t need to spend lakhs to get eyes on their ads or products, the creators already possess a huge following which instantly guarantees more eyeballs at a lower cost.?
But are there any real life examples of brands actually making it big using influencer marketing?
Sure there are! Let's take Nykaa for example, the Indian born unicorn startup that has become a pioneer in beauty and fashion. Nykaa has become one of the leading online cosmetic and beauty stores in India, with a turnover of over Rs. 883.30 crore in FY 2021. By using influencer marketing in the right way, Nykaa has developed a cult following and garnered a commendable level of brand awareness through social media.
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So there! The creator economy is booming, and is benefiting both creators and brands alike. It has become easier and more affordable for companies to successfully carry out an advertising campaign.?
And this is just the beginning!
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Credits:?Harshil Pujara?
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