The Creator Economy and How it Evolved

The Creator Economy and How it Evolved

2 mins read

Some of us remember when influencer marketing was a burgeoning topic and brands were only beginning to scratch the surface of this marketing channel. Now in the present year, the influencer marketing industry is “set to grow to approximately $21.1 billion” according to Influencer Marketing Hub. Many advertisers have experienced the highs and lows of influencer marketing, the variability in performance, at times sensitive content and the overall hassle of negotiation. But to understand influencers, as a brand, you must understand their world. The world of influencer marketing has not been easy to navigate for creators or brands and today we’ll provide insight into how creators have evolved.

Influencers vs. Creators

As social platforms emerged, so did influencers. Tastemakers, opinion leaders, and aspirational creators garnered large audiences across social networks. Audiences that influencers curated were loyal and engaged, buying products they recommended, following food trends and even sharing the same political views. To a social follower, an influencer could be both a friend and a perfect aspirational dream. However, the impact of influencers was not met with a positive reception in many circles. Influencers were scrutinized for selling an unrealistic lifestyle, for their impact on mental health and for spreading misinformation. It became normal to bully influencers and the general public often forgot that influencers are people too. For a long time, influencer marketing was a necessary evil for many brands.

In late 2018, TikTok became available in the US, as Musical.ly. The growth of TikTok in the US forced a significant shift in the influencer space. Due to TikTok’s algorithm, people that did not have perfected, curated lifestyles began to generate large amounts of followers. A new type of influencer was born, the creator. Today, creators range from scientists to comedians, to stay-at-home moms sharing their tips to get through the day. We are now in an era where anyone, with anything to share, can generate a mass audience. Some creators are even creating “de-influencing” content - sharing lists of popular products they believe audiences should not buy. 10 years ago, we may have seen a “mommy vlogger” curating a perfect tablescape whereas today, we may see a short 30-second clip of her hiding in a closet from her children to have a moment of solace alone. In short, the industry has become more raw, honest and realistic.

Brands

So how should brands partner with creators moving forward?

  • Choose the right creators: Choose creators that align with your brand and know that there is no need to sell “perfection”. The best creators are the ones that are already using your services. With modern social listening tools, advertisers are easily able to identify creators that have mentioned your brand and engage them for a partnership. Your best cheerleaders are always your customers. If your brand is new to the market, discover creators that align with your brand ethos. An animated dog-walking content creator that showcases your custom print dog bandanas on an array of breeds may be a better fit than a creator that shows their single well-manicured pup.
  • Pay fairly and transparently: Pay creators fair rates and share rate transparency wherever possible. BIPOC creators have historically been offered significantly lower payments than white creators. This can easily be avoided by paying creators a consistent rate. Keep in mind that creators generally use brand partnerships as a main source of income. Though some creators may receive income from ad payouts and creator funds, platforms like Meta, YouTube, TikTok and Spotify have been known to underpay creators - or not pay them at all. Simon Owen noted that TikTok doesn’t actually track the payments they make to creators to reach the goal it established and Spotify only paid out about 10% of its promised $100 million diversity fund. Creators are navigating a murky marketplace and paying your partners fairly will go a long way in building a lasting relationship.
  • Build a partnership: By focusing on the above points, you are building the foundation to a transparent and healthy relationship with creators. To your benefit, as a creator’s audience grows throughout your relationship, your brand will also reach new audiences. Additionally, a healthy relationship with a single partner can also open up your brand to opportunities with other creators. Stop viewing creators as a marketing channel and broaden your perspective to encompass a long-term partnership.

If you’re not sure where to start with creator marketing, please reach out to hello@backgroundnoise.co and we’ll help you get started. With a combined 15+ years of experience in the space, BGN can help establish a creator strategy that works for your brand.

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