Let's make sense of CREATOR ECONOMY

Let's look at some of the stats of the creator economy, sourced from Google.

1. The overall creator economy market size is anticipated to be around?$104.2 billion.
2. The global influencer market is worth an estimated?$16.4 billion.
3. As of 2022, there are approximately?51 million YouTube channels.
4. Over 29,000 Youtube channels have more than 1 million subscribers.
5. There are?30M+ creators?on Instagram.
6. Twitch has over?58,450 partners?and?1.7 million total affiliates.
7. Patreon pays creators $24 million every month.
8. Substack has over 1 million paid subscribers
9. 46.7%?of creators are full-time content creators.
10. 1 in 4?American Kids?Plan to Become Social Media Influencers.

The creator economy's broad participation is one of its greatest advantages. All you really need is a smart phone or a budget laptop, good internet access, and some imagination.?

Creator economy is a collective manufacturing of all social media (Meta, Linkedin, Insta, Twitter, Twitch, Tiktok & others) & internet advertising platforms (Youtube, Google ad sense & others) to create more & more content on the platform by marginally incentivizing - "ACTIVE AUDIENCE WHO CREATE CONTENT" known as creators & then modelling these creators to find look - a - likes of them to produce more & more content on the platform & then diversifying content across genres, topics, interests & various content formats.

So, a platform can eventually direct creators what content to produce, what trends to promote, what existing advertising opportunities to accelerate through communities so, this serves some sort of control over the supply channel either through owned & operated or third party governed community channels.

This is an interesting move by social media because they transferred a passive audience who were not creating content as followers of creators. Except eyeball contribution of this passive audience, they are now at least converted to some sort of metrics where creators keep engaging them in some or either sort, so passive audience is converted to an engaged audience.

And creators who are active content contributors are also converted to active audiences as they engage with each other in engagement pods/trails.

It's a win - win for the platform. More content, more content contributors, more active audiences, more new audiences & creators (through FOMO, Social compulsion etc.) & then this walled gardens eventually showcase supply side metrics to advertisers & thereby create more demand.

Platforms are actively creating their own tools & features or promoting third party creator tools, providing creator metrics, rewarding them with platform tags thereby democratizing the content creation space. At the same time. these walled gardens are continuously trying that once the user logs into the platform, they should stay as long as possible into the platform & thereby creating organic avenues - own newsletters, own non - downloadable images/videos, own groups etc. so a user cannot go outside the platform.

If at all a user goes outside, then through notifications & emails they bring him or her back, so unconsciously a user spends more time on the platform, doomscrolling for hours & hours thereby keeping them engaged by contextual value a user seeks.

The more supply side grows & becomes strong - advertisers then eventually pay more for paid ads & community-based solutions.

At the demand side, they eventually make targeting, bidding capabilities & reporting methods (own & third party) better& better where these walled gardens can now justify the ROI of campaigns through views, website traffic, app installs & engagements, conversions & specific decided actions.

All social media channels are now directly or indirectly bring in TikTok's model of revenue generation. So earlier, ads - audience - action was there for revenue generation. Now, almost all social media are trying to create a recurring loop where ads - audience - action - community acceleration - ad metrics.

In the upcoming posts, we will deep dive in detail on creator economy.

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