How The $100B+ Creator Economy Is Going To Be Shaped By Big Tech - CB Insights Research

How The $100B+ Creator Economy Is Going To Be Shaped By Big Tech - CB Insights Research

In recent years, influencers have become increasingly frustrated with the lack of rewards they receive from big media platforms despite generating high traffic. However, big tech is now realizing the value of content creators and the potential market estimated at $104 billion and growing. The power has shifted from platforms to creators, as platforms recognize the risk of losing their labor force if they don't provide better incentives.

Facebook, for example, has seen significant growth in the number of content creators earning money from ads and fan support. Monetization options on Facebook include the ability for users to tip creators through Stars and the potential to charge for access to Live Audio Rooms. Facebook is also looking to integrate newsletters, a flourishing part of the creator economy, into its platform.

Amazon, on the other hand, has its own initiatives to support content creators. The Amazon Live Creator app allows influencers to earn commissions through livestream sales. Twitch, Amazon's game streaming service, has seen a significant increase in hours streamed and viewed, making it a potential platform for creators to explore. Amazon is also interested in expanding into livestream shopping, following the success of Taobao Live in China.

Microsoft, through its CEO Satya Nadella, has expressed its commitment to the creator economy and the importance of both consumption and creative expression. Nadella believes that the next 10 years will be focused on creation and sees the phenomenon becoming more democratized.

YouTube, one of the largest platforms for creators, offers ample reach and financial success. It expects to generate $30 billion in ad revenue in 2021. However, the platform takes a 30% cut, which has been a point of controversy. Other infrastructure platforms, such as Stripe, take a smaller percentage, highlighting the need for more favorable platform fees.

In order to succeed in the creator economy, it is crucial for creators to establish themselves as independent brands and be platform-agnostic. Relying on a single platform can lead to dependence and potential limitations. By being open about their goals and seeking opportunities, creators can increase their chances of success. It is important to tell people what you want and be specific about it. No one can read your mind, so it is essential to communicate your desires and ask for help when needed.

Three actionable advice for creators in the creator economy:

1. Be specific about your goals and desires. By clearly defining what you want, you make it easier for others to help you achieve it. Don't assume that people know what you want; you need to ask for it.

2. Take risks and put yourself out there. The potential rewards of asking for what you want outweigh the fear of rejection or receiving an unwanted answer. Nothing ventured, nothing gained.

3. Be platform-agnostic and build your own brand. Relying on a single platform can limit your opportunities and create dependence. Establish yourself as an independent brand to ensure more freedom and flexibility.

In conclusion, big tech's shift into the creator economy is driven by the need to retain users and tap into a growing market. Creators are becoming more empowered, and platforms are recognizing the importance of providing better incentives. It is crucial for creators to be proactive in telling people what they want and seeking opportunities. By being specific, taking risks, and building their own brand, creators can navigate the evolving landscape of the creator economy and find success.