Creator economy
{{Short description|Economy of online content creators}}
{{Use mdy dates|date=October 2023}}
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The creator economy or also known as creator marketing and influencer economy, is a software-driven economy that is built around creators who produce and distribute content, products, or services directly to their audience, leveraging social media platforms and AI tools.{{cite journal |last1=Bleier |first1=Alexander |last2=Fossen |first2=Beth L. |last3=Shapira |first3=Michal |title=On the role of social media platforms in the creator economy |journal=International Journal of Research in Marketing |date=2024 |volume=41 |issue=3 |pages=411–426 |doi=10.1016/j.ijresmar.2024.06.006 |doi-access=free}} These creators - who may include social media influencers, YouTubers, bloggers, artists, podcasters, and even independent professionals - generate revenue from their creations through a variety of monetization strategies, including advertising, sponsorships, product sales, crowdfunding, and subscription-based services.{{cite book |editor-last1=Cunningham |editor-first1=Stuart |editor-last2=Craig |editor-first2=David |title=Creator Culture An Introduction to Global Social Media Entertainment |date=2021 |publisher=New York University Press |location=New York |isbn=9781479837601}} According to Goldman Sachs Research, the ongoing growth of the creator economy will likely benefit companies that possess a combination of factors, including a large global user base, access to substantial capital, robust AI-powered recommendation engines, versatile monetization tools, comprehensive data analytics, and integrated e-commerce options.{{cite web | url=https://www.goldmansachs.com/intelligence/pages/the-creator-economy-could-approach-half-a-trillion-dollars-by-2027.html | title=The creator economy could approach half-a-trillion dollars by 2027 }} Examples of creator economy software platforms include YouTube, TikTok, Instagram, Facebook, Twitch, Spotify, Substack, OnlyFans and Patreon.{{cite web |url=https://qz.com/2021902/on-the-internet-celebrities-function-like-influencers/|title=Celebrities are crashing the creator economy|date=June 17, 2021 |publisher=Quartz|access-date=2 November 2021}}{{cite news |last1=Andrew |first1=Steven |title=Influencer marketing agency in India |url=https://www.grynow.in/ |publisher=Grynow}}{{cite web |url=https://www.valuewalk.com/creator-economy-comes-age-asmarket-force/|title=The Creator Economy Comes of Age as a Market Force |date=June 23, 2021 |publisher=Value Walk|access-date=2 November 2021}}{{cite web |url=https://www.vccafe.com/2021/10/06/5-israeli-creator-economy-startups-to-watch/|title=5 Israeli Creator Economy Startups to Watch|date=6 October 2021 |publisher=VC Cafe|access-date=2 November 2021}}{{Cite magazine|last=D'Anastasio|first=Cecilia|title=Twitch Turns 10, and the Creator Economy Is in Its Debt|language=en-US|magazine=Wired|url=https://www.wired.com/story/twitch-turns-10-creator-economy/|access-date=2021-11-07|issn=1059-1028}}
History
In 1997, Stanford University's Paul Saffo suggested that the creator economy first came into being in 1997 as the "new economy". Early creators in that economy worked with animations and illustrations, but at the time there was no available marketplace infrastructure to enable them to generate revenue.{{cn|date=February 2025}}
The term "creator" was coined by YouTube in 2011 to be used instead of "YouTube star", an expression that at the time could only apply to famous individuals on the platform. The term has since become omnipresent and is used to describe anyone creating any form of online content.{{cite web |url=https://www.newyorker.com/culture/infinite-scroll/what-the-creator-economy-promises-and-what-it-actually-does|title=What the "Creator Economy" Promises—and What It Actually Does|date=17 July 2021 |publisher=New Yorker|access-date=2 November 2021}}
A number of platforms such as TikTok, Snapchat, YouTube, and Facebook have set up funds with which to pay creators.{{cite web |url= https://www.cnbc.com/2021/07/14/facebook-to-pay-creators-1-billion-through-2022.html|title=Facebook to pay creators $1 billion through 2022|date=July 14, 2021 |publisher=CNBC|access-date=2 November 2021}}{{cite web|title=How much does TikTok pay per view? Creator Fund explained!|date=31 March 2021 |url=https://www.hitc.com/en-gb/2021/03/31/how-much-does-tiktok-pay-per-view/|url-status=live|access-date=2 November 2021|publisher=HITC|archive-url=https://web.archive.org/web/20210331172055/https://www.hitc.com/en-gb/2021/03/31/how-much-does-tiktok-pay-per-view/ |archive-date=2021-03-31 }}{{cite web |url=https://techcrunch.com/2021/10/06/snapchat-revamps-creator-payouts-by-offering-chance-to-win-prizes-with-spotlight-challenges/|title=Snapchat revamps creator payouts by offering chance to win prizes with Spotlight Challenges|date=6 October 2021 |publisher=TechCrunch|access-date=2 November 2021}}{{cite web |url=https://www.theatlantic.com/technology/archive/2019/05/how-creators-became-influencers/590725/|title=The Real Difference Between Creators and Influencers|date=31 May 2019 |publisher=Atlantic|access-date=2 November 2021}}{{cite web |url=https://www.financialexpress.com/industry/technology/this-singapore-based-make-in-india-short-video-app-wants-to-take-on-meta-google-with-real-talent-and-original-content/2562788/|title=This Singapore-based 'make in India' short video app wants to take on Meta, Google with real talent and original content |date=June 16, 2022 |publisher=Value Walk|access-date=16 June 2022}}
Criticism
The large majority of content creators derive no monetary gain for their creations, with most of the benefits accruing to the platforms who can make significant revenues from their uploads.{{cite web |url=https://www.valuewalk.com/creator-economy-comes-age-asmarket-force/|title=The Creator Economy Comes of Age as a Market Force |date=June 23, 2021 |publisher=Value Walk|access-date=2 November 2021}} As few as 0.1% of creators are able to earn a living through their channels.{{cite web |url=https://www.thedrum.com/profile/mgempower/news/the-creator-economy-monetising-from-passions|title=The creator economy: what is it and how can brands engage with it? |publisher=The Drum|access-date=2 November 2021}}