Why and How brands Should Leverage the Creator Economy

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Why and How brands Should Leverage the Creator Economy

With the creator economy increasing rapidly, should brands take it seriously? And how should they leverage this quickly evolving ecosystem? This article will answer this and other related questions.

Ketty

2022-12-05

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The global creator economy is worth over $100 billion, with over 50 million people considering themselves creators, most of whom are amateurs. However, there are currently over 2 million pro content creators, with about 50% making their money off YouTube. Instagram comes second with about half a million creators and is often the top choice among creators.

One impressive thing about the creator economy is that it is a quickly evolving economy with more platforms and creators. Also, new tools and technologies have sprung up and made the whole creator ecosystem more exciting and profitable. The creator economy is an economy driven by creatives, and these creatives get to reach their audience directly. With the creator economy increasing rapidly, should brands take it seriously? And how should they leverage this quickly evolving ecosystem? This article will answer this and other related questions. 


What is the creator 

Source : SIGNALFIRE blog

The creator economy is simply talking about the monetization of the efforts of creators. These creators range from streamers to vloggers, influencers, comedians and so on. Creators are quickly altering the status quo in the world of entertainment. Therefore, anyone or brand benefiting from content creation can be said to be affected by this economy.

Nowadays, the creator economy is becoming more tech and data-driven, making it essential for brands and creators to innovate. For instance, Artificial Intelligence modeling can be used to discover deeper insights that can help improve the performance of creators. This alters the dynamics of the relationship between creators, brands and audiences. The creator economy is composed of three critical components, namely:

●Digital platforms host these creators and help them grow businesses and communities around their works.

● The creators regularly create content and businesses around their goals, skills or knowledge.

●Consumers are usually fans and followers of the creators and purchase their services, content and products.

It suffices to say that although marketers and brands may not be involved in content creation, they are integral in the different steps.


What is the size of the creator economy?

The creator economy has existed for several years, but brands and businesses have only recently begun appreciating its importance. Factors such as the coming of the recent pandemic further made the digital content world a focus. The creator economy encompasses the influencer marketing industry, digital content creators, and other related sectors. Currently, the market is estimated to be worth over $104 billion, which is a huge leap from before.


Why should businesses invest in the creator economy?

Research shows that social media is a critical factor for many online businesses. This makes the creator economy a strategic tool for brands looking to maximize reach and profit. Here are some reasons why brands should invest in the creator economy:

● Broader reach

One outstanding characteristic of creators is that they can reach many people in a short time with less effort. There are creators for different sectors such as science, technology, entertainment, health and lifestyle, sports and the like, which means there is a creator for nearly all sectors.

● Creators are conversant with their audience

Most creators tailor their content for specific demography, age group, etc. This implies that most creators have a personal relationship with their audience and know how to create the right content. They also create contents that help market products suggestively and unobtrusively. 

● The growth and expansion of the Metaverse

The Metaverse is a new and quickly evolving industry that allows creators to innovate. One unique thing about the creator economy is that it is dynamic and involves new software, ideas, platforms and tools. This creates new opportunities to make more money and create fresh content. Content creators are becoming increasingly relevant to the ever-growing Metaverse world, which is why more brands are partnering with them. 

● Increased accessibility

Worldwide, about 4 billion users of smartphones are on at least one of the prominent social media platforms. Unique features such as clickable-content technology and editing tools have made content creation easier and quicker.

Also, the increase in creator-focused startups has catalyzed the sector's growth. With creators getting more audience and accessibility, brands looking to scale in reach and revenue should partner with them. Platforms such as YouTube, Facebook, Instagram, Snapchat and Twitter boast billions of users who could become customers of such brands.


How can your brand leverage the creator economy?

You can get several benefits from the creator economy as a brand. Here are a few things to keep in mind:

● Keep your investment protected 

You need to have a proper contract signed and documented and, if possible, use an escrow system when dealing with creators. Also, ensure that the creator is motivated by releasing funds when due. Working with creators shouldn’t be difficult if the interest of all parties is properly catered for.

● Be tailored in your approach

There are thousands of creatives, which means your options are wide. However, note that the success of any partnership between your brand and creatives depends heavily on their suitability with your brand. Search for creatives whose message and content align with what you stand for. Also, check out the work the creatives have done in the past and confirm their quality before you hire them.

● Be clear about your goals

Before you get involved with creators, clearly state your expectations and goals for every project. Creators aren’t exactly magicians that read minds, so they will do better if they know what you need them to do. Ideally, you should have a clear brief about the project, which indicates where your brand is or isn’t flexible.

● Relationships are important

You need to have a solid relationship with creators because the best creators prefer stable arrangements. Long-term projects with creators will help you and your brand build genuine relationships while keeping the creator fully involved in your project.


Where is the creator economy heading

Source : sprout social

The creator economy is currently worth billions, but what’s more interesting is the fact that the best is yet to come. Creatives are rapidly gaining prominence, and the sector quickly evolves with innovations, technology and practices. Any brand looking to leverage the creator economy needs to keep an eye on the emerging trends that will characterize it.

● Entertainment and education will still lead

The past few years have seen a greater focus on entertainment and educational content for the creator economy. Most people are likely to consume contents that make them laugh or learn. Therefore, brands should search for creators who align with their brand value and are experienced in the focus industry and convince their target audience. Contents that give entertainment and education are more likely to help you sell your brand proposition quickly.

● The rise of Voice-Centric contents

Although video ranks as the most prominent type of content, there has been a recent rise in voice-centered content. For instance, podcast listeners have risen by a large number in the past few years, and the number seems to be on the increase. Voices help people freely express themselves while they do other things. People can exercise, drive or cook while listening to audio production, which is why platforms like Google Podcasts, Apple Podcasts and Twitter spaces are becoming more popular. 

● The rise of Affiliate marketing

Tracking sales recorded from influencer marketing can be difficult because although it helps build brand awareness, it doesn’t always lead to sales. One intelligent way brands have sought to motivate content creators to help sell their products is by using affiliate marketing. Most companies in the SaaS and digital product industry are adopting affiliate marketing as a way to drive up sales.


Can content creators influence consumers to patronize your brand?

While most influencers are creators, not all creators are influencers which means that although a person may be good at creating unique content, they may not influence their fans in your favor. In such a situation, brands should consider the following to be sure that the partnership with the creator is mutually beneficial:

  1. Find out the strength of the relationship between the creator and their followers.

  2. How much funds does your brand have for the project?

  3. How will the creator make sure that there is an effective sales conversion?


Time to find the right creatives for your brand!

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Finding your brand's creators and influencers can be difficult, so you need to use the right tools and resources. A smart way to go about this is by having a good idea of the creator you intend to partner with and their value proposition. Agencies such as Vlinghave a rich list of creatives and influencers that can help your brand. Also, such agencies know the right people to fit your brand’s needs.