How Big Tech is Shaping the $100B+ Creator Economy and Aggregator Strategies for Integrators

Glasp

Hatched by Glasp

Sep 28, 2023

4 min read

0

How Big Tech is Shaping the $100B+ Creator Economy and Aggregator Strategies for Integrators

The creator economy has been rapidly growing, with influencers and content creators seeking fairer rewards for their high-traffic content on big media platforms. In response, big tech companies are making efforts to capture a larger share of this market, which is estimated to be worth over $100 billion and still growing. The power dynamic has shifted from the platforms to the creators, as platforms realize the importance of retaining their labor force by providing better incentives.

Facebook, for example, has seen significant growth in the number of content creators earning money through ads and fan support. From 2019 to 2020, the number of creators on Facebook earning $10,000 a month grew by 88%, and the number of creators earning $1,000 per month nearly doubled. To further support creators, Facebook has implemented features such as Stars, its native tipping system, and plans to allow creators to charge for access to Live Audio Rooms through a one-time or recurring fee. Facebook's integration into the creator economy also extends to newsletters, as it looks to compete with platforms like Substack and Revue.

Amazon, on the other hand, has been focusing on livestreaming and earning commissions through livestream sales. Its Amazon Live Creator app allows influencers to connect with their audience and sell products during livestreams. While Amazon has experimented with livestreaming on various platforms, it has found the most traction on Twitch, its game streaming service. In Q3'20, creators streamed 206 million hours on Twitch, and users viewed 4.7 billion hours of video. Amazon is looking to expand into livestream shopping, as seen with Taobao Live, which generated $7.5 billion in the first half hour of presales for China's Singles' Day shopping festival.

Microsoft's CEO, Satya Nadella, has emphasized the importance of creation in the next decade, stating that "the next 10 years is going to be as much about creation as it is about consumption." Nadella recognizes the need for a balance between consumption and creative expression and believes in democratizing the phenomenon of creation. YouTube, as one of the leading platforms for creators, offers the most reach and financial success. With over a billion hours of video watched every day, YouTube is expected to generate $30 billion in ad revenue in 2021. However, the platform fee that YouTube takes has been a point of contention, with some arguing that a lower fee would significantly benefit the creator economy.

When it comes to aggregator strategies for integrators, The Athletic provides an interesting case study. The Athletic, a sports journalism platform, became successful by aggregating content created by full-time journalists. The platform organizes content by team pages, satisfying user intents such as knowing when a team plays next or learning about their players. Aggregation strategies can be successful if there is a viable supply of content. This supply can come in the form of user-generated content (UGC), inventory, or programmatic landing pages. UGC platforms often function as marketplaces between buyers and sellers, while inventory refers to the entities created by products that can be aggregated and surfaced on search engines. Programmatic landing pages, such as directories, offer a template-based approach for aggregation.

To implement successful aggregator strategies, it is crucial to shift from a marketing mindset to a product-focused one. Understanding the steps users take to receive core value, identifying opportunities for public entities or user-generated content, and considering integrations and keyword search volume are essential for product thinking. Additionally, builders need to evaluate product value, business feasibility, and user experience to ensure success in the aggregator SEO strategy.

In conclusion, big tech's involvement in the creator economy aims to retain users and capture a larger share of the market. By providing better incentives and features for creators, platforms like Facebook and Amazon are adapting to the changing dynamics. However, creators are also seeking platform-agnosticism and independence to reduce dependence on any one platform. On the other hand, integrators like The Athletic have found success through aggregator strategies, organizing content and satisfying user intents. Shifting from marketing to product thinking and considering the viability of aggregation are crucial for successful integration strategies.

Three actionable advice before conclusion:

  • 1. Platforms should prioritize providing fair rewards and incentives to content creators to retain their labor force and compete in the creator economy.
  • 2. Aggregators should focus on creating a viable supply of content, whether through user-generated content, inventory, or programmatic landing pages.
  • 3. Builders and marketers should shift their mindset to product thinking, considering product value, business feasibility, user experience, and the potential for significant traffic from targeted keywords through aggregation.

Hatch New Ideas with Glasp AI 🐣

Glasp AI allows you to hatch new ideas based on your curated content. Let's curate and create with Glasp AI :)