The Creator Economy Is Set to Hit Half-A-Trillion Dollars by 2027 — How Can Your Brand Cash In?
By
Meg-Mel Dean
August 28, 2024
At present, the creator economy is on fire, and she’s only getting hotter.
We’re talking about an industry that’s expected to explode to nearly half a trillion dollars by 2027 which, when presented numerically, equals $500,000,000,000.
That’s A LOT of zeroes.
But these zeroes do make perfect sense, because according to Goldman Sachs research, this isn’t just some passing trend – it’s a full-blown revolution.
So, how can brands ride this wave and come out on top? We’ve only got a little under three years left to do so…
Gone are the days when only big companies had the power to influence the masses.
Today, individual creators with their own brands and online audiences are taking over the digital world. Thanks to platforms like TikTok, YouTube, and Instagram, just about anyone with a smartphone and a good idea can become a content creator.
And with more people consuming digital media than ever before – tell us you don’t doom-scroll on TikTok or Instagram at least once a day – the creator economy is benefiting from this like crazy.
I’m a brand. How can I get in on the action?
As the creator economy skyrockets, brands are presented with a golden opportunity to tap into this market.
But it’s not just about throwing money at influencers and hoping for the best.
To really benefit, you’ll need to be strategic about who and how you’ll be partnering with, what goals they can help you work towards, what channels you’d like to invest in, and how you intend to engage with creators from a long-term perspective.
Here’s what to look out for:
AI-Powered Recommendations: The secret sauce. We’ve witnessed AI significantly infiltrate our day-to-day so much within the last few months, so imagine how much more it’s impact would be in three years. Partnering with agencies or even individual channels (e.g. TikTok) with strong AI recommendation engines are gold mines for brands. From surfacing the most relevant content to sourcing your most ideal creators, these tools can reveal information that aids in developing content designed to natively sell your brand.
Monetisation Tools: Give creators options. Campaigns that offer a variety of monetisation tools and payout structures are more attractive to creators looking to diversify their income streams – whether through brand deals, Affiliate links, revenue shares, or perhaps a whole new model entirely. And happy, motivated creators mean better partnerships for brands.
Data & Analytics: Misconceptions that Influencer Marketing and content performance can’t be tracked are from days that are long gone. Whether in the form of click-through rates, watch-times, engagement and reach rates and of course, revenue generated through a piece of content, we’re now equipped with all the tools to measure creator campaigns in a quantifiable, valuable way. Platforms with robust data and analytics provide transparency on key metrics that inform and optimise your content strategy, including within partnerships with creators. Keep this in mind when you’re considering all your options.
eCommerce Integration: Shopping made easy. Platforms that integrate direct shopping options into the user experience make it easy for creators to drive sales, particularly for DTC brands. With built-in tools like Instagram product tags, TikTok shop, and even shoppable video content on websites, brands can easily see a direct return on their investment – understanding the true value of content when creators are integrated fully into shoppers’ purchase journey.
Ability to Scale: Now, we know many things can change with time and it’s hard to predict how much budget your brand can afford to allocate to different marketing streams in the years to come. But it is possible to future-plan. “Go big or go home.” is a pretty solid mantra here, so ensure you’re equipped to invest in creators that can find you the right audiences, for the right impact.
Today, creators are raking in their income from a few different sources: brand deals, ad revenue, and direct payments from followers like subscriptions and donations.
But make no mistake. Brand-direct deals are where the big bucks are.
About 70% of creator income comes from these partnerships, making you (*if you’re a brand!) the bread and butter of the creator economy. Whilst only 4% of global creators today are considered “professionals” (i.e. earning >$100,000 per year), our experiences with creators to date has revealed a trend – a noticeable increase of rates and fees – as one would expect when factoring in the value of their influence.
So, brands that want to stay ahead of the curve need to act now.
Build relationships with your dream creators and customers now, so that you’re tapping into this booming market before everyone else tries to get in quicker.
If you need help getting started, Sticki’s solutions are 100% in line with what experts in the field recommend. From our tech to our reporting, we’ll make sure you’re on the right track waaaaaay before this 2027 phenomenon makes it harder than ever to start.
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