By Rameesh Kailasam & Tamseel Hussain
The world has witnessed a largely gloomy past few years from 2020 onwards due to pandemic, geo-political tensions, long Russia-Ukraine war and an impending recession but however the silver lining has been the creator economy. Last year, the unexpected folks like the corn kid and ‘kacha badam’ became viral sensations allowing the creators behind them to encash on their short-loved yet humongous popularity.
The creator economy has been constantly and criticized for being overhyped and overfunded with no future. On the contrary it has been reinventing itself and evolving into something more significant through emergence of newer models and opportunities for the creators, communities and brands.
Year 2023 is likely to witness big shifts as brands are moving away from being dependent on 1% of creators and the rise of creator communities that help 99% monetise early, added to this the power of IP Selling.
The advent of smartphones, accessible and affordable data plans has led to the decentralisation of media. Creators have existed for a long time, people who pursued their passion and created content, but it is only in the last decade that they have been able to monetise it. According to Kalaari Capital, the total size of the global creator economy is pegged at $104 billion and more than 50 million people worldwide consider themselves creators.
The creator economy landscape is an important pillar of the emerging Gig Economy. According to a study by Oxford Economics, video sharing platform YouTube’s India creator economy was pegged at Rs 10,000 crore in 2021, up from Rs 6,800 crore in 2020. One of the pioneer’s in the space, YouTube’s Partner Program launched in 2007, allowed creators to earn revenue through advertisements. All major global platforms and many emerging India Startups are now seemingly following the same path, wherein creators are allowed to put advertisements and earn a share of the revenue.
As they become more established and gain a following, creators are looking beyond sponsored content and merchandise to create their own IP. This shift allows creators to have more control over their content, generate more revenue, and build a lasting brand giving rise to filmmakers, script writers, screenplay specialists finding more opportunities and importantly livelihoods.
Globally, there are over 200 million creators and India is set to have the largest base of social media content creators with the figure crossing 100 million this year, according to a report by influencer marketing firm Zefmo. The report predicts that the “organised influencer marketing” sector is expected to reach Rs 3000 crore by 2024 and the revenue share of micro influencers is set to rise from 9% to 14% by 2024.
In the past, it was challenging for creators with fewer followers to monetize their content, as most opportunities were reserved for those with massive followings. However, this is changing rapidly, and creators with small but engaged audiences now have more opportunities than ever to earn a living from their content. There are platforms that offer a revenue-sharing model based on the creator’s engagement rate, rather than their follower count. This approach is a departure from the traditional model, where revenue-sharing was based solely on follower count, a significant step towards creating a more equitable creator economy.
Platforms like Patreon, Ko-fi, and Buy Me a Coffee allow creators to set up a subscription-based model where fans can support them directly. This approach allows creators to earn a steady income, regardless of the size of their following. Other platforms like Tip Jar and Brave Rewards enable fans to tip creators for their content, which can be a great way for creators to earn some extra income. Indian Startup platforms like Pluc.tv are helping creators harness better relationships with brands and businesses by enabling great storytelling, IP Selling and innovating creator communities.
Brand campaigns are more likely to put a larger amount of their marketing budgets into influencer campaigns than traditional television campaigns. For long, creators were not experimenting, and were relying mostly on platform based revenue and most creators use at least two different platforms. A Deloitte survey revealed that creators, in general, are not satisfied with the performance of the platforms that they use. Most brands now frequently rely on affiliate marketing to leverage influencers on social media. Health, wellness, fast moving consumer goods, sports and entertainment are some of the top segments where creators can break easy. As per reports, in 2022, affiliate market spending in the US is predicted to reach $8.2 billion and is expected to grow throughout this decade.
According to Teachable, creators earned a total of $456.7 million through 1,83,744 new courses and 17,686 coaching products in 2020. The average price of a coaching product was $167 and the platform hit the milestone of having $1 billion in creator sales in 2020.
Year 2023 will put the creator at the centre of everything. Apart from revenue, leveraging the content for different platforms and customising it as per the market requirements is the way forward. Looking at platforms beyond social media will be a game changer for creators. For instance, Pluc.tv has developed tools that help a creator to monetise early on. There exists a gig corner that has the right tools that allow creators to sell digital products like stock and experiences , and offer exclusive content such as courses or even make their shows for brands or platforms.
Therefore reinvention was inevitable in the creator economy space with the market also learning what, how and from whom to expect. The relationship between Brands and new creators has never been this intimate.
The Authors are CEO, Indiatech.org and Founder & CEO Pluc.tv.
https://www.financialexpress.com/opinion/2023-the-likely-end-of-conventional-and-dawn-of-new-creator-economy/3048067/
