Table of Contents 64q43
A profession that has given a lot to talk about in recent years — and who knows if I can say in the last decade — are content creators and social media influencers. People who have a page with daily content, whether from games, fashion, feed, life style or whatever the subject, is on the bandwagon of one of the most watched professions today. But is it really as profitable as it seems? Apparently yes, since forecasts for the creator economy for this year 2023 is quite encouraging. 3r5u3u
Platforms need to tighten ties 4a3n2u
One of the biggest sources of income for creators in 2022 was ads from YouTube — those ments that play when we watch a video. Including the short videos part of the platform, the Shorts, are also managing to raise some income for these content creators. This is all through the YouTube Partner Program — also recognized by the acronym in English YPP. This year it will be possible for some content creators to enroll in this program.
Getting there can be quite a task, as it's not enough just to sign up, but also reach at least 1.000 subscribers and 10 million views on videos released on Shorts — all of this within a period of 90 days. Once entered into the YouTube Partner Program, the creator will have 45% from the income generated by ad revenue from your videos.
These prerequisites can be viewed quite challengingly as short videos are well known for their difficulty in monetizing. THE TikTok for example, there is the Fund for Creators, a platform that pays its content creators, and it ed an income of $200 million in the last quarter of 2020. The intention of the social network is to expand this number to $1 billion in the United States over the next three years and then double it internationally.
Quite a bit of money involved, huh? But it is still the tip of the iceberg: the YouTube paid its content creators more than US $ 30 billion in ad revenue in just the past three years. And even if these numbers seem surprising coming from the platforms they work on, this is still not the only source of income for content creators. The most popular TikTok creators earn even more money from advertising and other off-platform opportunities than they do from the videos themselves.
O TikTok has proven to be the most accessed social network in recent times — although it does not necessarily compete with others in the same category. Instagram, Snapchat e YouTube they do everything to get to where this new social network has come, even if they desperately need to copy it. But when it comes to money, there may be a preference, and as YouTube has been generating more revenue for creators, there is now some sort of pressure that TikTok has to take.
Investors at full throttle 5u2h17
And since no one wants to miss any opportunity to generate income, especially with these opportunities with the internet and social networks, there are many people out there who invest – heavily – in this game. Trendy technologies like artificial intelligence ou Web3 receive a lot of attention from investors, and content creators are no different.
According to data Crunchbase, there was a drop in profitability for content creators in the first quarters of 2022: $343,2M monthly in the first quarter, $336M monthly in the second quarter and US$ 110,2 million in the third quarter. Despite the decreasing number, this is probably not an indication that the area is declining, but that the industry is adjusting to the exaggerated investment, especially when they realize that there is income being directed to creators who do not necessarily need that investment.
In 2021, a year in which venture capital flowed a lot, there were people who said there were more startups in the creative economy than creators themselves. But this is a problem for investors, not for content creators, many of whom operate completely oblivious to what goes on behind the scenes. This actually becomes indicative of an environment that encourages big technology investors who don't have real experience to try to solve problems in an area they don't understand very well and, as a result, the space ends up being very saturated.
them for them 3j4k3f
Even though the creator economy is suffering from investors, those who are generating their content daily to their followers, continue to generate income in a way that their audience doesn't see... at least as clearly as that. An alternative for these creators are startups that they create themselves, such as jellysmack, Spotter e Creative juice, from foreign breeders. They offer money upfront in exchange for temporary ownership of a creator's old YouTube catalogue, meaning that startup gets access to all the advertising revenue generated by these videos.
These initiatives work in a similar way to companies that deal with venture capital: they invest in content creators that they understand that, according to their conditions, the money that had been invested can be reviewed and bringing some more profit, making both parties win in some way. As it's all a very new area, it's important for creators and startups to stay aware of real dangers and risks.
Strategies for 2023 5y6b2i
With all that said, some content creators and investors started to outline more concrete goals for this year, aiming to further increase their income with different strategies. The vision of this market is multidisciplinary, not focusing only on the creation of content itself, but on several factors that contribute to maintaining the health of this market. check out what big names in content creation are considering for the economy of this area for this year:
Increase in the number of content creators 476e5k
Co-founder of talent management company Kensington Gray, Shannae Ingleton Smith, understands that TikTok would be able to attract even more Gen Xers and Millennial creators as the platform continues to expand in 2023.
Gen Z will definitely continue to shine and have their moment, but we're going to start to see some really big rising stars who have never been successful or big on Instagram or YouTube before, who will start from scratch on TikTok and become super - huge star
Shannae Ingleton Smith, co-founder of talent management company Kensington Gray
Already for lia haberman, an adjunct professor of marketing at UCLA Extension, the situation looks more promising on YouTube:
In 2023, I think we'll see a record number of creators identify themselves as YouTubers for the first time. Shorts has lowered the barrier of entry for creators who never saw themselves as part of that ecosystem, and the addition of AdSense payments for short videos makes the platform that much more attractive. For professional creators, YouTube is currently the best bet for a sustainable income through predictable content distribution.
Lia Haberman, associate professor of marketing at UCLA Extension
The founder of talent management company One Day Entertainment, Zack Honarvar, envisages a scenario in which content creators hire large production teams and also businesses we turn to development. The businessman still believes that there is some chance to return to the old way of making vlogs on YouTube, bringing the nostalgia factor as an ally to these creators.
Go beyond photos and short videos 3d5v3f
Darren Lachtman, the co-founder of the digital production company Brat, believes that creators who work beyond short videos and stills are bound to be more successful. Those that continue to explore podcasts, for example, may have even more room for opportunity.
We will continue to see the evolution from just pure audio to more 'vodcast' productions as creators mix audio and video. This format allows creators to post the same content on multiple platforms.
Darren Lachtman, the co-founder of the digital production company Brat
Live broadcasts are also very popular in this industry. Startup founder Clara, Christen Nino de Guzman, is confident in this means of communication.
When I worked on TikTok, livestreaming was huge for the Chinese version of TikTok and they tended to see a lot of trends originate in China first and the US followed soon after. Lives require a different set of skills and talents than just staging the perfect shot or scripting a 20-second music video.
Christen Nino de Guzman, founder of startup Clara
julian andrew, founder of the influencer talent management company Talentiish, agrees and adds that lives are a more technical way to capture the attention of your audience.
Creators who can go live for hours on end will start to do really well, because it's more than just browsing content. People want longer content, so just keeping someone's attention live will become a trend in 2023.
Julian Andrew, founder of influencer talent management company Talentiish
Startups can close 5h1z60
In 2022 layoffs had quite a bearing on the creator economy, as companies like Jellysmack and Patreon reacted to the economic downturn by laying off employees. Nick Chen, co-founder of Pico, a creative monetization startup, said these negative impacts on startups will unfortunately continue into 2023 and could get worse.
Many creator startups will die. Venture capitalists think this is not the time to bet on the creator economy, so the next nine months are going to be really tough. I think we'll catch up on Labor Day if startups can wait until then to raise funds.
Nick Chen, co-founder of Pico
And that prediction is shared by the founder of the American Influencer Council, Qianna Smith Bruneteau, who also believes that some creator startups may experience a tighter time this year.
Many of them will fail because they raised insane amounts that they can't keep up with and many of them struggle to acquire at least a base.
Qianna Smith Bruneteau, American Influencer Council
Possible wave of mergers 6g5i8
One of the solutions for the economy of content creators to survive would be the merger of companies or startups, and this consolidation could happen massively in the coming months of 2023.
Low valuations and multiples mean that most acquisition targets are effectively ‘on sale’. As a result, institutional acquirers like private equity firms that still have some cash to spend will start acquiring mid-to-large creator startups at much higher prices and advantages.
Alex Zirin, associate at consulting firm RockWater Industries
Avi Gandhi who is founder of the consulting firm Partner with Creators, has his eye on saturated niches in the sector's economy, such as fintechs for content creators and companies that exacerbately use the link in the bio to make sales or their audience.
On the creator side, there are many options. The odds of them choosing your service – or any service for that matter – are suddenly exponentially lower, and sometimes they won't even choose a service because it becomes too much for the consumer.
Avi Gandhi, founder of consulting firm Partner with Creators
See also:
5 tips to have more organized email in 2023.
Pig iron: TechCrunch e Business Insider.
