Until recently, mainstream media was run by a few major players. Be it entertainment or news, most of us read, watched, and heard content from a few companies. And if an individual wanted to start a conversation or contribute to one, they had to do so as a part of these companies.
With the advent on the Internet however, all this has changed. Media has now become decentralized and democratized, allowing anyone with an internet connection to make their voice heard. What’s more, the content created by ordinary individuals is being consumed at an accelerating pace. Moving on from traditional TV, cinema, radio, and newspapers, social media apps such as YouTube and Tiktok are giving millions, if not billions, the platform to create and share content. This is now being called the creator economy.
What is a creator economy?
Defined simply, a creator economy is an Internet-driven economy that includes millions of people who create content and use tools and software to grow their audience and make profits. This group of creators include bloggers, artists, social media influencers, videographers, etc. In such an economy, creators earn from their audience directly. In between creators (entrepreneurs) and audiences (consumers), lies the opportunity for companies and advertisers who market to and through these creators.
As opposed to traditional media which had pre-determined and oftentimes rigid content and programming, the creator economy creates space for all kinds of niche content that interests social media users – be it through short-form audio and video content, podcasts, social commerce, and live streams. So today, instead of watching the same few channels and content on traditional media, we now have millions of unique content themes catering to audiences with niche interests.
How social media role plays a vital role
While the creator economy was around in its nascent form with the invention of the Internet, it has become the juggernaut it is today due to social media. Forbes reports that globally, there are over 50 million creators across social media platforms such as Instagram, YouTube, TikTok, and Twitch. Another factor that catapulted the popularity of the creator economy is the COVID-19 pandemic, during which many people staying home found new ways to put out content and create new streams of income.
According to Statista, India is home to over 900 million active internet users. By 2025, 67.4% of Indians will be on one or more social media platforms. While television still takes the lion’s share of consumption across the country, use of social media through smartphones and laptops/PCs are increasing markedly. The average social media user in India spends almost 2 hours every day on various social media platforms. Needless to say, the potential for businesses to take advantage of the growing creator economy is huge.
Leverage the creator economy to your advantage
When it comes to social media, viewers prefer to consume content from ‘people’, not ‘brands’. That’s why very few brands have managed to find success on social media platforms. But you can always tap into the creator economy with social campaigns and influencer marketing. Content creators can be effective liaisons between brands and customers because they:
- Keep their fans engaged with regular interactions and targeted content
- Create more compelling advertising by customize your brand’s message to their niche
- Offer higher conversions due to their established relationship and trust with followers
- Effectively target millennials and Gen Z customers, who are more likely to engage
Content creators are also more effective in advertising a brand as they are a departure from the traditional push marketing strategies. Today, consumers prefer to engage with a brand and associate on a personal level before they make a purchase. As a brand, you can effectively monetize niche content from these creators and influencers through various mediums such as:
- Product placement – whether through subtle plug-ins within the content or shown as a lifestyle choice of the influencer
- Sponsored content – an effective way to improve your brand awareness across channels
- Merchandise – co-branded merchandise designed with the creator can help them monetize their following further and boost sales for you
- Live and virtual meets – live events at physical stores in collaboration with content creators can boost brand awareness and sales at turbo speed
- NFTs – creating exclusive paid experiences with co-branded NFTs can grab the attention of tech-savvy audiences, especially if your category is compatible with the space
Get started today!
If you’re yet to explore the world of content-driven marketing or simply want to fine-tune your efforts, we can help you. With Tenovia, you can leverage the power of social media in the creator economy – gleaming invaluable insights from audience measurement and forecasting, re-engagement strategies, ad creation services, and data-driven reporting.
Ready to tap into the creator economy? Reach out to the experts at Tenovia and we will take your social media game to the next level!