The rise of digital content creators has been visible since the internet world introduced social media platforms. However, its impact on the economy in the past decade is finally well documented.
Currently, the creator economy is estimated to be over $100 billion in industry, and in the coming years, its valuation will further increase.
Thanks to the rising popularity of the creator economy, it is capturing not only the attention of the audience but also of the investors. At present, there are more than 50 million creators across the globe.
How big is the digital creator economy?
According to reports, the valuation of the creator economy is approximately $104.2 billion. As discussed above, there are over 50 million creators across the globe. 8% of these are professional creators who create content of different niches, including how to download various apps and games from platforms such as Galaxy Store. In addition, 46 million of the total creators, nearly 92% of all creators, are amateur content creators.
Further, most digital content creators are young and belong to Gen Z. 48% of all the creators are female. In 2021, the creator economy managed to raise an investment of $5 billion. The beauty of the creator economy lies in its diversity. Everyone can become a content creator, from side hustlers to full-time entrepreneurs working on an app to launch in the V-Appstore.
Revenue sources of content creators
Many people know that pushing out consistent and good quality content helps one to rise in fame in the creator world. However, in addition to that, the creator economy also presents numerous ways to earn money. For example, 77% of content creators earn revenue from brand deals. Furthermore, ad revenue provides 5% of the income of many content creators.
Other popular revenue sources in the creator economy include their brand, affiliate links, tips, courses and subscriptions. The popular platforms among digital content creators are Instagram, YouTube and Twitch.
Micro-influencers are now in trend
Previously, the number of followers that an influencer had used played a vital role in the influencer-brand association. However, now this trend is changing. Instead of the number of followers, the brands are considering the engagement rate of the influencers for brand partnerships. Therefore, it is now paving the way for micro-influencers.
The influencers who have a genuine connection with their audiences will now shine. It is because the conversion rate is higher for micro-influencers than macro influencers.
A survey previously indicated that 45% of the audience consider purchasing after seeing its promotion by a digital content creator that they follow. The content creators can gain the audience’s trust by showcasing their in-depth knowledge about the product.
The impact of the pandemic in the digital content creator economy
The pandemic disrupted the normal functioning of the world. However, it positively impacted the content creator economy. In just two years, many content creators have emerged on the digital platform to show their talent and follow their hobbies. Digital media platforms are not only providing young people with a way to follow their passion but also to monetize it well.
Before the pandemic, there were a few top influencers. However, with many new talents on the platform, micro-influencers have stolen the spotlight.
A change in the traditional employment models
The employment model is changing, with influencers worldwide making good money by creating money. It is especially true for Gen Z. Most of the Gen Z creators are now working on their terms in a decentralized manner instead of serving as full-time employees. With success stories of content creators flooding in, more change is expected in the employment model.
Challenges and opportunities of the digital content creator economy
The key challenges that the digital content creator faces are in the form of algorithm change along with the monetization model. Furthermore, most content creators are working alone and serving as a one-person army, quickly resulting in burnout. Additionally, taking a break is difficult because social media platforms demand consistent content to stay relevant.
Even though the creator economy has its challenges, it presents numerous opportunities too. For instance, anyone can be a content creator. Furthermore, with consistency, it is also possible to have a steady flow of income. If one is producing content based on their interest, not only do they enjoy the process but also need not compromise it with an additional full-time job.
