Explore the evolution of the creator economy from passion projects to profitable ventures

For many decades we relied mainly on a few big media houses for information and entertainment we saw on television, radio, and in print. But the advent of the internet and web 2.0 brought a significant shift in how we consumed information by decentralising content communication, creation, and distribution. Thanks to the opportunity offered by social media, we found ordinary people like ourselves writing, filming, and creating different types of content that resonated with people worldwide.

And as a result of this, people moved away from traditional media sources. They started surfing the internet to consume content and connect with people who shared similar interests and experiences. Over time, people learned to market their skills, hobbies, and interest online. This resulted in the rise of a new economy built by millions of independent content creators, curators, and community builders, marking the beginning of the "creator economy".

Today the creator economy estimates a worth of more than 100 billion, comprising every individual who is a part of the web economy, including social media, blogs, videos, software tools, and tech platforms like Hypothesis designed to help them grow and monetize.

More than 50 million people globally consider themselves a creator, with two million plus being professional creators, monetising their passion as full-time income using platforms like YouTube, Instagram, Twitch, TikTok, and many more. According to a survey, YouTube content creators contributed a whopping 6800 crores to the Indian economy in 2020.

The evolution of the creator economy

a) The birth of social media platforms

Towards the end of the 2000s, we witnessed the birth of many social and content channels like Youtube, Instagram, Spotify, Medium, and more. The development of these platforms has been pivotal to the rise of the creator economy. We wouldn't have creators if you didn't have platforms on which they would create. It was due to social media sharing that content distribution became normalised. Today, creators are no longer at the mercy of large production companies as these platforms have made them well-equipped to solve their distribution problems.

b) The emergence of influencer marketing

As the creators began building a dedicated audience engaging with their content because of their skills and personality, brands began to see the value in investing in creators to promote their products and services to their large on-platform audiences. This proved a very successful marketing strategy, aka influencer marketing, as it allowed brands to tap into a new market and advertise to a wider audience.

Creators started getting paid by brand sponsors on platforms like Instagram and Tiktok in exchange for their reach to an audience they access through the platforms.

c) Creators are brands within themselves

With the influx of influencers growing continuously, competition for branded collaboration becomes increasingly stiff, which, in turn, is causing influencers to look for other ways to monetize.

Instead of chasing revenue through generic clickbait content, influencers are becoming the new brands. Today creators have gained enough loyalty from their audiences to be able to sell any products better than the traditional brands. Creators are launching their brands without investing millions into a team and resources- only with the combination of audience & reach, good branding, and a unique point of view with their product.

Conclusion

Today, many brands consider working with creators an essential part of their brand and marketing strategy. But it remains a largely unorganised space - with discovering the right talent to work with and measuring success depending on how each brand structures its efforts. The creator economy needs a unified platform to connect brands with customers through the right influencer and manage the entire campaign pipeline. At the same time, it requires a platform for creators to engage with their audience and build meaningful relationships with brands.

That's where 'Hypothesis' steps in - allowing agencies and brands to discover the right creator with detailed filters, conduct outreach, set up the campaign, and track performance on one platform. On the supply side of the ecosystem, 'Hypothesis' empowers creators and influencers to reach their full potential using social media intelligence to understand their content performance and audience affinity and form connections with brands and agencies.