Creator economy is characterized as a category of enterprises made up of more than 50 million independent content curators, creators, and community builders, such as social media influencers, videographers, and bloggers, as well as the financial and software tools that help them expand and monetize their businesses.
In the creator economy, the following three trends are prominent:
Creators are migrating their most ardent fans away from social media and toward their own apps, websites, and monetization tools.
While focusing on their work, creators are becoming entrepreneurs, forming teams, and putting together tools to assist them in starting enterprises.
As audiences desire to connect with individual individuals rather than impersonal publishers, creators are growing in power in the media industry.
Despite the fact that the creative economy is barely a decade old, more than 50 million people throughout the world consider themselves to be creators. It's the fastest-growing sort of small company, and according to a survey, more American children want to become a YouTube celebrity which is 29% than an astronaut (11%) when they grow and develop.
Content creators can make money on platforms like YouTube, Instagram, Snapchat, TikTok, Twitch, Patreon, Substack and OnlyFans by:
Advertising revenue shares
Digital content sales
Live and virtual events
So, how did creatorship become so popular so quickly? A societal shift in sentience has occurred, with people caring more about being fulfilled in their professions, having control over how they spend their time, and being their own boss. Followers see creators making a living doing what they love and hope to follow in their footsteps, which never ends in a cubicle.
Meanwhile, the industry has reached a tipping point due to improved phone cameras, faster mobile networks, larger screens, and creator-focused social networks. All you need now is an idea, phone, and the courage to be judged by strangers to join the creation club. Simple? That's not the case. You'll get 12 views if you do that (maybe 15 if you have many cousins). Don't even think of getting a deal with a well-known brand. Creators must be brilliant storytellers, tireless hustlers, and leaders of their fan groups in order to prosper.
Fortunately, a slew of businesses has sprung up to assist creators, particularly the 2 million people who can make a living from it.
Before we get into all of the many sorts of tools, it's crucial to understand how the creator economy has evolved, which can be broken down into three tiers that build on each other.
Platforms for the digital age: We've seen the rise of platforms like Instagram, YouTube, iTunes, Spotify, and, more recently, Snapchat, Medium, Twitter, Twitch, TikTok, and others since the late 2000s. By extensively investing in their recommendation and curation algorithms, platforms help creators be discovered and create a following - they addressed the distribution challenge for creators.
Creators were no longer at the hands of major production firms, who controlled what content to make and who would watch it. Multi-channel networks like Fullscreen and Maker arose as a result of these platforms. They gathered creators and provided them with audience development tools before selling them for hundreds of millions of dollars, while new networks such as Tastemade and Brat TV arose.
The platforms also led to the development of multimedia editing software to assist content providers in polishing their work. However, platforms do not always have the best interests of content providers in mind, thus wise creators learn to cross-promote and diversify their presence across multiple apps to reduce "platform risk." That way, they're not prone to "platform whiplash," which occurs when a platform's popularity declines, priorities shift, features are removed, or opportunities are reduced.
Brands began to see the return on investment of paying top creators to use their on-platform reach to market products and services once they had established an established following that trusted what they had to say. While some platforms divided traditional ad revenue with artists, others left it up to the content creators to find out how to monetize their work, resulting in the growth of sponsored content and organisations like Niche that facilitated the deals.
Hundreds of businesses have sprung up in this arena, including influencer agencies, talent representation firms, sponsorship marketplaces, and more. The current influencer marketing TAM is $8 billion, according to Mediakix, and it is predicted to expand to $15 billion by 2022, making it one of the extremely fast business areas. In an ideal world, creators partner with sponsors who align with their personal brand and don't sacrifice content quality to promote a corporate message.
The year 2021 has reignited interest in blockchain and cryptocurrencies, as well as introduced the notion of NFTs to the general public.
To put things in perspective, Web 1.0 was built around indexing documents, whereas Web 2.0 was built around social participation and integration. Web3, the third generation, is currently available, and it is based on configurable trust. Users will not have to worry about who controls their data or how it is marketed in Web3.
It will also provide data with programmable interfaces and capabilities, as well as the ability to participate directly in the economy and data governance. This new kind of networked governance will aid in the development of global mass integration and more direct democracy.
Web3's purpose is to cut out the middleman, resulting in applications that are more secure and efficient than their predecessors. With user-controlled identification, reputation also becomes decentralised, allowing users to reclaim control of their reputations from central authorities such as credit reporting agencies and social media platforms. Based on reputation rankings offered by other peers in the network, they can choose who has access to certain pieces of information.
Web3 is, in my opinion, a revolutionary shift that will offer much-needed improvements to the internet environment while also allowing people to reclaim control over their data and identities. Web3 will also empower and feed the new ownership economy by allowing users to sell services completely without the use of a middleman.
The ownership economy exists and is expanding. Not only have we personally witnessed its expanding effect, but Techfastly has also spoken with a number of notable leaders at the forefront of the movement, all of whom believe that we are starting a new age. Whether it's peer-to-peer financing, healthcare delivery, or car-sharing services, the massive wave of innovation that's sweeping these platforms will definitely usher in a new way of life for both consumers and businesses.