Starting with the Web 2.0 rise of the creatives
I could start out saying the world has been experiencing an unprecedented wave of change. That not only would be trite, it wouldn’t really be true. The world has experienced many waves of change, some have just taken longer than others.
The hunter gatherer society shifted into a more agricultural economy which shifted into a more industrial economy. The industrial economy started to shift into a more automated industrial economy as the information age got it’s feet under it in the mid-twentieth century.
The information age led to the invention and widespread use of computers and the internet, bringing them literally into our pockets. The only thing unprecedented in this process has been the speed the latter developments took place at and continue to.
This post will be looking from the perspective of Web 2.0. You wont find mention of Web 3.0, NFTs, blockchains or crypto. I’m not ignoring it. I’ll just look there in future posts.
As computers and the internet expanded the information economy shifted into digital. In the information economy products were tangible, usually in print form or intangible as intellectual capital. In the creator economy products are digital in various forms and shared online by individuals or organizations..
The creator economy shares some similarity with the digital economy as transactions happen online. Content creation is the center of the creator economy. Most participants are self-employed individuals using digital platforms to earn income. They are not simply creating and sharing but also monetizing and distributing their creations.
The major shift with the creator economy is the direct connection creators are able to build with their audiences. They are able to cut out the traditional middle-man and build connect and community directly with their targeted audiences. They also are able to retain a larger slice of the income pie without the middleman.
Technology companies have responded to this push by creating platforms that enable the connections. They either serve as providers of onine-enabled mediums for content distribution or provide services to help content creators monetize their content.
Content creators work to reach as many people as possible to distribute their creations as widely as possible. Encouraging consumers to connect and engage directly with them builds their ability to monetize their content.
Digital content and and digital creators are the money-making products of the creator economy. It’s the relationship between creators and audience that builds the marketing potential. Their followers are their customers and their fans who have the power to expand the creators reach.
Some of the ways creators can monetize their products and themselves to their audience si through direct promotion, fundraising or subscription models which allow their followers exclusive access to their contents. Estimates made during Q3 of 2021 puts the creator economy at about 104Billion USD.
The pandemic has in many ways driven the expansion of the creator economy as many found themselves seeking out side-hustles to augment their regular incomes. For some, they continue as side-hustles, others have gone full-time on the side-hustle while maintain other employment through working at home.
Jobs are being created through this increased economic activity as firms adapt to the new realities marketing firms, brands, advertisers, support service providers and tech companies all benefit. But not all is roses and income.
Reflecting the broader economy, it’s a very small number who win big in the creator economy currently. Creating and maintaining a social media presence doesn’t always guarantee success, there is a lot of hustling needed just to get by. For example singers wanting to earn on Spotify need about 3.5million views a year to earn what would be a full-time minimum wage. YouTubers earn about $3-5 per 1k video views.
Even with the downsides, the creator economy will continue to grow and flourish as it moves beyond Web 2.0. The opportunities are there for those who wish to embrace them and do the work.
NOTE: header image from Pixabay.com
