What Is The Creator Economy and Why Does It Matter?
The internet and the emergence of social media have meant never turning off work. It’s a world where we’re connected with people across the globe using just our smartphones. I can watch a video on how to make my soufflé rise without burning it and learn what someone called Mark from Leicester wore on his dinner date; all with just a few strokes on my phone.
This level of connectivity and communication has opened avenues for more than just idle scrolling. With the help of technology, we’re able to usher in a whole new ecosystem of how humans interact and consequently, do business.
In this article, we'll talk about how we are moving from the Industrial Economy to what is known as the 'Creator Economy', where everyone is a creator, from the everyday home cook to the CEO of a Fortune 500 company.
What is the Creator Economy?
In recent years, we've seen a rise of the so-called "creator economy." It's a new economic model in which creators—YouTubers, TikTokers, bloggers, podcasters, etc.—produce content consumed by an audience of fans willing to pay for it; either by their constant attention, their 'likes', 'shares', and 'comments', or with money.
Why has this been the talk of the town, though? Simply put, it's because the creator economy gives rise to a new class of entrepreneurs who build businesses around their passion and talent rather than following a more conventional and "safe" career model.
So, maybe I should have stuck to playing FIFA and eventually become a gaming content creator. Eh, maybe that's a train of thought I'll leave for my dream journal. For now, it’s the rise of this new model and the power paradigm shifting back to the hand of the consumers and the creators is something we’re appreciating.
That’s right. The creator economy is also empowering for consumers, who are no longer confined to the limited content offerings of traditional media outlets and the preachy advertising they and their forefathers are accustomed to.
Instead, the consumers can find and support the content creators they love and get the kind of content they want.
Why does the creator economy matter?
One of the pillars of success behind the creator economy is the creator-consumer connection that it has created.
The creator-consumer connection is the relationship between the people who create content and the people who consume it. In the past, this relationship was mediated by gatekeepers like record labels, publishers, and production studios and agencies who worked with brands to create audio-visual or text ads of yesteryears.
However, thanks to the internet and social media, creators and consumers can now connect directly to discuss the products and the brand itself without any intervention or moderation of the brand involved.
The direct connection between the creators and consumers has several important implications.
First, it means that creators never needed to rely on these intermediaries to reach their audience. They can bypass the gatekeepers and reach consumers directly. This allows them to create content that hasn't gone through layers of approvals and filters that a brand would want. Instead, it comes straight from the creators' creative genius to the consumer's eyes and ears.
Second, the direct link creates a feedback loop that can help improve the quality of content. When creators know that they have an audience interested in what they're making, they're more likely to put more effort into ensuring that their content is high quality.
Third, it allows for a much more intimate relationship. A sense of intimacy and trust comes from knowing that you're connecting with someone directly. This can also lead to a deeper engagement with the content and the creator.
Fourth, there’s a two-way communication channel between creators and consumers. It's not just one-way communication from creator to consumer anymore; consumers can give feedback to creators directly. This helps ensure that the content being created is actually what people want to see, which is, in turn, equivalent to their success.
So, how would I sum up the creator economy? I would say it's a new way of doing business that puts the power back in the creators' and consumers' hands. No matter who you are and where you fall on the consumer-creator-business spectrum, you're already a part of the grandiose creator economy.
Learn more about creator economy on our upcoming webinar - 'The Power Of The Creator Economy: 5 Ways To Convert Influencer Marketing'