How brands can take advantage of it

The creator economy has seen phenomenal growth in the last few years and it will grow more in the future. So, what does this mean for brands, and how can marketers take advantage of this booming economy? To answer this question, I talked to a few HubSpot marketing Specialist and researched the size, growth, and changes we can expect of the creator economy.

A woman makes a video as part of the Creator Economy.

Here’s everything marketers need to know, starting with the evolution of the creator economy over time.

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How the Creator Economy Has Grown Over the Years

The exact size of the creator economy varies depending on who you ask. While statistics show that 50 million people are contributing to the producer economy, a recent report linktree Said that by 2022 there are about 200 million people. One reason for the discrepancy may be how the numbers are calculated.

For example, there can only be 50 million content creators Contribution to the producer economy. Yet, the economy also includes the consumers, entrepreneurs, companies, platforms, and advertisers that drive the economy.

Either way, there’s no doubt that the maker economy is incredibly profitable. Projected Creator Economy Market Size By 2022 $104.2 billionMore than doubling its value since 2019.

Here are some more interesting facts about the size of the creator economy:

So now you know how huge the creator economy is, but how much has it grown over the past few years? let’s explore.

How the Creator Economy Has Grown Over the Years

In a study published in August 2022, Adobe found that the creator economy has grown to more than 165 million people globally over the past two years – a 119% increase. According to the study, creators are about 23% of the population, which means that almost 1 in 4 people worldwide is contributing to the creator economy.

Adobe notes that 2020 saw significant growth in the creator economy – according to the study, more than 1 in 2 creators (52%) began posting social content.

adobe creator development

Image source: Adobe

The Creator Economy Has Grown, But How Has It Contributed Change, To learn more, I spoke with the Senior Marketing Manager at HubSpot Creators Andrea Hudson, Hudson says the key takeaway he’s seen over the past five years is that brands are now focusing on the power of creators to drive influence.

Hudson said, “We’ve moved from an ‘influencer’ strategy to a ‘creator’ strategy, which means the creator is actually a part of the marketing mix.” “It requires a significant amount of understanding of what motivates creators, how omnichannel campaigns can bring creators even more into the fold, and why creators are an integral part of the puzzle.”

According to HubSpot’s Director of New Media, another key change in the creator economy is its accessibility Kyle Denhoff,

“The barriers to creating a media product have come down significantly,” Denhoff said. “When we talk about creators, obviously there are people who can produce something right from their phone and post it on social media – but we are also talking about freelance writers, podcasters and YouTubers. who are building digital media products.”

Denhoff said, “It’s much easier for them to set up a home studio with lighting, audio and great camera quality – and the equipment and cost of those equipment have come down over the years. So it’s more accessible to people than ever.” it’s easy.” To get these independent media products up and running.”

Denhoff also says that creators who typically work for large companies can now branch out and carve out their own niche in the creator economy.

“So, he was the author for the Atlantic or for writers digiday” Denhoff said. “He had built a profile at that media company … as an expert, and because he was already so good at his job, he had an existing audience – and now he branched off to create their own independent media products and generate revenue as a solo entrepreneur.”

According to Denhoff, an example of this phenomenon would be the Atlantic author Derrick Thompson, who hosts his own podcast, general English,

Why the creator economy is on the rise

The creator economy got a huge boost at the start of the COVID-19 pandemic when many people found themselves stuck at home or in need of more income due to budget cuts and layoffs. People turned to platforms like TikTok and Twitch to beat their cabin fever during the lockdown or earn extra income after layoffs.

However, both Denhoff and Hudson state that other factors contribute to the development of a producer economy.

In addition to increased affordability, Denhoff also said that another reason for the rise of the creator economy is how platforms cater to creators.

“The platforms where people post their content have created more tools and functional capabilities for creators,” he said. “So, YouTube, Facebook, TikTok, etc are giving them more options.”

Many of these options include opportunities to make more money.

“Twitter is starting to do a little testing with offering a newsletter option, and I think a ‘super follower’ option for monetization,” Denhoff said. “On YouTube, YouTubers can set up paid subscriptions … There are opportunities for people to visit these channels, create content for an audience, and make money from it.”

Speaking of money, Hudson said that one of the main factors contributing to the growth is “investment dollars from companies to creators.”

“Whether it is indirect play or direct play, the creator economy market is set to reach over $104 billion in revenue in 2022, and brands must allocate spending to this sector if they plan to grow with the future of business media be forced to do,” Hudson said. “Creators are driving businesses; they’re finding multiple ways to generate revenue by diversifying their distribution channels.”

Another factor, Hudson said, is that the pandemic forced media outlets to take a creator-first approach and adapt marketing campaigns to a new landscape.

Hudson recalled, “Even the mass media networks were built to report live from wherever they were, mostly their homes, and most community-focused platforms had a live channel to tune into.” offered an alternative.” “During this time, you’d be hard-pressed to find a social media platform that wasn’t creator-first, with a focus on increasing engagement through live feeds and social media. The only place to go was the internet; the rest Everything was closed and there were no open dates in sight.”

How the creator economy could change in the future

So what does the future hold for the maker economy? As the Creator Economy continues to expand, I believe the following will happen:

Niche content will continue to flourish.

I’ll never forget when a content creator went viral on TikTok for reviewing bathroom sinks around New York City. That’s when I realized that today’s consumers love niche content specifically tailored to their interests. And with content creation becoming more accessible, content creators with unique stories will continue to emerge.

It will also allow brands to find creators and micro-influencers who can introduce them to new audiences.

Community-oriented marketing will increase.

Niche content goes hand in hand with community-based platforms like Twitch, Discord and Reddit because audiences want to connect with others who share their interests – and community-based platforms allow for connection.

As a result, the maker economy will focus more on establishing and maintaining a sense of community in the future.

Influencers will become more integral to businesses.

As the creator economy continues to focus on niche content and community engagement, brands will have difficulty connecting with audiences within the digital space – because people want to communicate with other people, not brands.

To combat this, brands must collaborate influential people With an established and engaged audience. Denhoff said brands should invest in long-term partnerships with creators — moving beyond one-time paid ads on a creator’s platform.

“one of the [HubSpot] Have started investing in independent creators to help them do what they do best,” he said.

Denhoff says the investment includes providing financial value to creators, distributing their content across HubSpot’s brand channels, and cross-promoting their content across the HubSpot network. He says this partnership will allow creators to grow and reach sustainability while introducing the brand to new audiences.

Denhoff said, “I think marketers just need to start thinking about how they can partner with creators and how they can provide creators with more value so that they are true partnerships rather than just paid transactions.” Can.”

In short, the creator economy isn’t going away anytime soon, and it will continue to generate more revenue with a focus on creators and their niche communities. Suppose marketers want (and they should!) to exploit this economy to their advantage. In that case, they will need to form long-term, mutually beneficial partnerships with influencers and creators to reach their audiences.

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