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The Concept of the Creator Economy and its Impact on the Business World
Today, we no longer depend upon the big traditional media channels for our content consumption. Gone are the days when we used to wait for our radio slots, news show timings, or the morning newspapers for content. We create and consume content on a real-time basis. For us, a minute late is old news today, and content is unlimited; this is where the concept of the "creator economy" comes into play. In this article, we will be deeply diving into the concept of the "creator economy," when it bloomed, and how it affects business today.
The Concept of the Creator Economy
The "Creator Economy" is a concept that is not even a decade old. The creator economy is what took over the era of big media. "Big media" was characterized and run by radio shows, big publishing houses, news channels, newspaper companies, and others. The people in big media were the only ones who decided on the type of content that the public would consume, what their beliefs would be, and on which side they would be bent. The creator economy is run and managed by content creators, content curators, videographers, bloggers, influencers, social media celebrities or influencers, software developers, and the fin-tech companies that help them share their content. In simple terms, today everyone who knows the art of storytelling and has a phone and a good internet connection can be a creator in the creator economy. Today, we have more than 50 million creators in the creator economy.
The Creator Economy Arose as a result of
The internet has become accessible to all − Earlier, only a few companies had the financial capacity to reach the farthest part of the nation, and hence they enjoyed the monopoly of content creation and sharing. But now in India, because of the advent of Jio, the internet has entered every household.
Smartphones are the Trend− Mobile phones are no longer a luxury but a necessity, and hence it is very easy for them to consume content. Creators can ensure that their content is consumed by millions at zero cost.
Birth and bloom of Social Media − today we have a population of more than 8 billion people, and among them, more than 4.48 billion are on social media. Social media has grown to be the most important platform for community engagement and all of the company's shopping needs.
COVID-19 has Strengthened the Digital Infrastructure − The pandemic has pushed consumers and businesses to begin selling and consuming goods and services online.
Demand for self-employment, flexible working hours, and job satisfaction − From the viewpoint of the creators, today's job seekers prioritize job satisfaction and flexible working hours more than compensation. They want to work for something they believe in; their own work and job satisfaction, or the sense of pursuing their passion, is far more important to them. Today, individuals are much more than just a corporate resource, and this willingness is a major factor in the birth of the creator economy.
In the creator economy, content creators are using social media platforms like
YouTube and others.
In the Creator Economy, How Does Advertising Take Place?
Social media influencers have a huge organic fan base, also known as "followers," who are actively involved in the content of the creators. These people are fond of their influencers and believe in them and their recommendations as well. When businesses are using the creator economy, they are advertising through social media and influencers. With influencer advertising, businesses are able to target the million-plus fans that the influencer has. They can make advertisements in the following ways−
Sponsored stories or posts
collaboration with the brand as the brand ambassador
Going live on social media platforms and others
Advantages of the Creator Economy
The following are the advantages that a company gains by allocating a portion of its advertising budget to the creator economy.
Engaging with the audience and reaching out to them is very important for consumers to feel that they are not just another dumping ground for the company. Consumers need to feel valued, loved, and engaged. They need to feel that the brand is interacting with them and engaging with them while they are advertising. The company's ultimate goal should not be sales, but engagement. Engagement, in turn, will ensure that products sell and consumers become loyal to the brand.
Native Advertising − The creator economy helps the company with native advertising. Though an influencer might have followers or a fan base in different parts of the nation, generally, the major chunk will be people in their community. With them as brand ambassadors, companies can easily target the natives and run advertisements that they find entertaining.
Authenticity − With the creator economy, brands can now choose influencers who align with their core values. Advertising through the creator economy also gives the brand authenticity. It assists the brand in developing a relationship of trust and confidence with its customers. This happens because consumers know the social media influencer. For them, the influencers are not some unknown species but someone they know and can relate to, and when these people speak about the product, it is like word-of-mouth publicity for them. Hence, it is very important for brands to decide on influencers. The image the influencer has is going to say a lot about the company and its product. People are only going to follow people with whom they relate or with whom they want to be friends. If there is a mismatch here, then the entire amount of money and energy are wasted.
Social media is Booming − People of all races, ages, ethnicities, cultures, socio-economic backgrounds, and nations are becoming active on social media. Social media is the new platform for communication and all the needs of the consumer; hence, a large chunk of the company's advertising budget should be allocated to digital advertising and to creating their own space in the digital world. The company's goal should be to be a part of the creator economy.
The "creator economy" is the new buzzword. It is important for the business to take a look at this and start investing in it because of its growing popularity. Consumers are shifting to social media, and businesses have to do the same. With the creator economy, firms will be able to target the relevant consumers and create content that their audience enjoys. The creator economy is created and valued by the community.
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