There are a million ways to make a career in 2022.
A home chef with a food blog hosts a giveaway of a high-end knife set.
A family vlogs their airline-sponsored vacation.
A former plumber gives fix-it tips on YouTube as part of a paid ad for a tool company.
These are just three examples of the growing creator economy.
Today, many people want to earn extra money through a side hustle, are looking for a new career with their creative talents, or just want their moment of fame online. And they’re all participating in the creator economy, sharing their talents, skills, and insights with the world.
Companies are taking note of this opportunity, devoting larger parts of their marketing budget to social media and creator partnerships.
And if you want to reach your ideal audience, boost sales revenue, and build brand recognition, tapping into the creator economy might work for you.
Here’s what you need to know.
What is the Creator Economy?
The creator economy is the online marketplace where individuals bring in revenue from content creation. Content varies significantly, including everything from TikTok videos to long-form blog posts to online courses.
While some content creators are hobbyists, many use their skills and expertise to grow an audience which, in turn, opens opportunities for monetization.
Most creators earn money from brand deals with companies that sponsor them to create ads or promote products to their audiences. This type of monetization makes up 77% of creator revenue.
The creator economy—this network of content creators, companies, and social media platforms—is big. SignalFire compiled market analysis data to estimate the total number of people who identify as content creators at 50 million people.
The State of the Creator Economy 2022 report compiled data from over 2,700 content creators. The results provide some interesting insights:
- Most creators have been doing it for a while: While 24% of creators started during the pandemic, 67% of full-time creators began more than three years ago.
- Creators are of all ages: 49.84% of creators surveyed were between 31-60, with the rest distributed all the way up to 70+ years old.
- There’s a wide range of content creator types: The top three creator types were educators, bloggers, and coaches. YouTubers and podcasters came in at 9th and 10th place. In terms of specific content being created, social media posts, articles, emails, short-form videos, and digital products round out the top five most popular.
- Most creators are doing this for income: Only 10.6% of respondents indicated that content creation was a hobby; the rest are made of part- (42.7%) and full-time (46.7%) creators.
For companies and business owners, these stats represent an opportunity. There are more creators than ever before, of diverse ages, offering a wide variety of services, across various platforms.
There’s an audience for your business, and there’s a creator already connecting with them. And tapping into the creator economy might be the boost your company needs to reach them and accelerate growth.
Why the Creator Economy Works
Before the “how” of leveraging the creator economy for your business, let’s look at why it works. Why is this industry growing so quickly?
There are a few main reasons:
- People are online: Social media has rapidly changed everything about how people live, work, socialize, and shop. It makes sense that they’re turning to social platforms for brand recommendations or to make purchases.
- Consumers value authenticity: Today, people are searching for authenticity. They want to see real people using real products and services. Some of the most famous content creators or influencers are those who invite their audience into their normal, everyday lives. Consumers engage with it because of that authenticity.
- Creators have a wide—or specific—reach: The biggest content creators and influencers may have millions of followers. Companies that can tap into that network will put their product or service in front of a huge audience. But there’s another side to it—smaller content creators still have a strong relationship with their specific, niche audience. This, too, presents an excellent opportunity for brands to tap into.
In short, people are already online and they’re looking for something real. So, companies need to go where the people are and use the creator economy to get their product, service, or message out there.
6 Ways to Benefit From The Creator Economy
If you want to leverage the creator economy for your business, you need to consider it as part of your marketing strategy. In addition to traditional marketing activities like paid ads, email campaigns, or sales funnel management, add content creator partnerships to your list.
Here are 6 ways to leverage the creator economy and benefit from it in your business.
Learn from Content Creators:
- Stay relevant with trends: Don’t just scroll through social media, but look analytically at what’s trending, why certain things are popular, and what reaches large audiences. Always think of how you can incorporate these back into your business’ advertising. For some Insta-specific info, check out our article on how to use Instagram reels to promote your business.
- Be authentic: Whether you’re specifically partnering with content creators or not, you can learn from them—authentic, real-life messages impact consumers today. Incorporate storytelling into your marketing and appeal to them on that human level.
- Don’t be perfect: While many content creators put out polished work, some of the biggest influencers out there simply rely on their iPhone to record videos. The raw, authentic, and spontaneous feel of top creators is something that captures attention and builds a connection with an audience. Don’t worry about always making it perfect, but think about how to engage with your audience.
Work with Content Creators
- Expand your team: Content creation is a lot of work. And if you have a small team or budget, partnering with content creators can help you accomplish more. For example, you can partner with a niche influencer on Instagram for some paid ads. They do the creative work and share it with their audience, both of which you may not have the capacity or resources to do.
- Try something new: When you think of content creation, YouTube or Instagram might come to mind. But there are thousands of platforms and content types out there. You may find a blogger, coach, or artist that connects with your company’s mission and values. By partnering with new creators on new platforms, you have the potential to expand your reach further.
- Engage your audience: The most successful content creators know how to engage their audience because they show their personality and connect individually as almost pseudo-friends. Partner with content creators who have a proven track record for engagement. Then, keep the momentum going by proactively connecting with their audience—i.e., responding to comments or re-posting user-generated content.
The creator economy will continue to grow. And, as it does, look for ways to leverage it by making space in your marketing budget for social media, creator partnerships, and some experimental strategies to figure out what works!
Above all, learn from creators. Be authentic, genuine, and engaging to find and connect with your ideal customer base. Tap into a professional network that can help you learn, grow, and expand your business. Book a tour of The Post.