TrendsPublications and Reports
Global communications consulting firm LLYC’s Digital Influence team present “Monetizing Creativity: How creators make an impact in the digital world,” a new study into the rise of creators in the digital world, focusing on the opportunities that the Creator Economy can offer companies operating in the United States, as well as in Brazil, Mexico, and Spain. It shares how the creator economy has become a significant monetary force and presents some of the main ways businesses can best leverage it.
“The industry has moved past talking about ‘influencers,’ which focused on their numbers of followers, to talking about ‘content creators,’ which ties influence to values of legitimacy, trust, and authenticity – three traits most companies do not have organically,” says Marta Alonso, Senior Director of Digital Influence at LLYC USA. “By working with these digital creators, brands can humanize their messages and communications if they know how to crack each space’s code. If they do, they can connect with audiences and customers in a very positive way.”
According to the report, key findings in the United States include:
– A rise in niche content creation. U.S. content creators are increasingly finding success by focusing on smaller, niche audiences, marking a significant shift away from the era of mass appeal.
– Gen Z is a driving force behind this rise. Gen Z’s choice of social media platforms has driven the democratization of content creation, allowing anyone to become a content creator.
– Lower trust in mainstream social platforms. More and more people are moving away from popular social media and gravitating toward niche networks to connect with specific communities of like-minded people. For example, the percentage of people using Facebook dropped from 27.5% in 2021 to 18.3% in 2022. (Ahmed, 2022)
– Algorithms now reward niche content. Most algorithms are designed to prioritize the content most likely to have high user engagement, and niche content tends to have more engagement than mainstream content.
– Niche content driving a fast-growing new economy. According to Goldman Sachs, the demand for more authentic content means the creator economy is projected to reach $480 billion by 2027.
Partnering with influencers has long helped brands humanize their messages and stand out in the digital landscape, and this is the next step. Now, today’s creators can help companies seeking to connect with hard-to-reach audiences authentically, implement creative narratives, keep pace with change, and differentiate themselves in online spaces to succeed in a saturated environment.