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The creator economy is maturing into
an industry worth north of $104 billion globally by the end of 2023, according
to data compiled in a new report.
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There’s been a 314% increase in the number of
people earning a living as creators worldwide, up from 50 million in 2021 to
207 million this year, per the “2023 Creator Economy Report”
from The Influencer Marketing Factory.
This includes amateur creators whose
number has almost tripled in size since 2021, while the demand for creator
mentorship and monetization opportunities is “drastically increasing.”
Creator-led brands have emerged as
valuable partners for well-known companies, sports teams, leagues, and other
entities looking to expand their audience by tapping into the content creators’
niche audience.
“The industry is starting to
recognize that creators are businesses,” says Sima Gandhi, Co-Founder, CEO of
Creative Juice, one of a dozen industry execs quoted in the report. “We’ve seen
that when creators leverage business and tax tools, they can make more, save
more, and grow faster.”
TikTok and YouTube are the top
favored and top earning platforms at a relatively even rate in 2023. For both
TikTok and YouTube, 26% of creators say they are their favorite platforms and
26% say they earn the most on either platform.
The report supports other research
that being a full time creator will net you a decent living but by no means one
you can retire on. The majority of content creators interviewed for this report
make between $50,000 and $100,000 per year. More than 75% of creators earning
less than $20,000 annually have less than 150,000 followers.
The report suggests that this may be
due to the fact that they are smaller creators just starting out in their
creator careers, or they may use influencer marketing and user-generated
content as a side hustle.
To start earning $1 million a year,
creators will need more than five million followers. Even then, only 4.8% of
creators interviewed with more than five million followers reported earning
more than $1 million per year in 2023.
Cr: The Influencer Marketing Factory
Avi Gandhi, Founder of Partner with
Creators, points to the rise of the “grown up” creator.
“Ten years ago, when you said
‘creator,’ the mental image would be of a young teen or 20-something taking
Instagram photos or making YouTube videos,” he says. “Then COVID-19 happened,
and every gainfully employed adult in the world was sent home. Since then,
hundreds of thousands of professional adults have augmented their incomes or
gone full time as creators.”
Being a creator is no longer a young
person’s game: “As tools, platforms, and services businesses have arisen to
feed relatively new revenue models – like masterminds, coaching, courses and
more — small audiences have started to yield large dollars.”
In addition, creators don’t need to
appeal to the masses to make a living; they can carve out a niche and find
people willing to pay for their content.
“Content creation isn’t just about
creativity and entertainment anymore,” Ghandi adds. “Now, more than ever, it’s
about utility.”
The report provides an overview of
every notable social media platform and creator tool. For instance, it notes
that multi-language audio tracking is now available for creators on YouTube.
YouTube reported that dubbed videos
made up approximately 15% of watch-time in the channels’ non-primary language.
One of the world’s highest earning
creators, Mr. Beast, tells the report that multi-language audio is extremely
useful for creators like himself who have several subchannels for content
translated to a different language in that their spread of content can be
condensed to one main channel.
“You can imagine if you take twelve
channels like those and instead of doing them all separate you combine them on
one, it supercharges the heck out of the video,” says Mr. Beast.
This in turn makes it easier for
global viewers to locate content and simply select their language dubbing
preference from the video settings menu. Mr. Beast advises that creators dub
their old content as well as their new content so that fans may binge watch
your content.
“Just as word-of-mouth marketing has
always been the most effective form of advertising, creators harness that
power, but at scale,” Brendan Gahan, Partner & Chief Social Officer at
Mekanism says in the report. “Individuals are the trusted media outlets.”
He goes onto argue that the
relationship creators have with viewers isn’t so much a fan relationship but
one more akin to friendship.
“Influencers form powerful,
parasocial bonds with their audiences. It’s a one-to-many, scalable friendship.
Celebrities may be recognized, but it’s creators who are truly loved and
trusted by their communities.”
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