Creators and the startups and tech companies that revolve around these entrepreneurs are on the cusp of a new, third era. They’re benefiting from the growing realisation by entertainment companies, sports leagues and retailers that creators have for some time now represented a direct and authentic path to generations of digitally-native fans. However, the over saturation of digital creators on the supply side is also leading to change and challenges.
‘Talent Tech’ is emerging as a growing sector as the creator market grows and attracts disruption
An increased number of businesses are building platforms and tech that is either targeted at the world of talent and creators, or which is utilising creators for monetisation.
Examples include creator marketplaces, creator data tools, talent subscription offerings, contract creation and online management services, creator curation platforms, creator live streaming, talent schools and education platforms. Soon we’ll also see online creator product investment platforms, direct content and rights funding and much more. As a crowded and over supplied market, much of the space is crying out for further disruption.
AI will inevitably play a bigger role in the creator economy and subsequently contribute to changes in how brands utilise creators and social content
From AI created virtual influencers and AI powered creative tools to AI algorithms and tools helping to personalise and optimise content through data analysis, we’re starting to see how AI is going to lead to an increase in social content and the number of creators as access to content production is further democratised.
This increase of creators and content with the addition of new platforms, means we may actually start to see more of the forever talked about longer term partnerships between creators and brands to increase impact and stand-out, with creator content being distributed cross-platforms.
We’re also likely to see subcultures or narrow fandoms becoming more crucial for precise audience targeting and improved ROI, and a need for brands to have fast reactions to emerging content trends, helped of course by AI driven insights.
An increase in venture capital is coming directly into and out of the creator economy, meaning the rise of a new kind of business building.
2024 is going to see the emergence of funds specifically investing in creator led or driven businesses and a growth in funds created or backed by creators themselves.
Both models have at their heart the concept that having creators involved in early businesses can derisk product launch and cut initial marketing and acquisition costs, as creators utilise their channels for promotion. As with all brand-creator relationships, the key will still be an authentic pairing.
Whilst digital creators have been building brands for over 10 years now and there has been an increase in both successes and failures, one difference we’ll see in venture capital coming into the space is a faster, more efficient turn-over in the abandonment of creator businesses that don’t meet early targets. It is important for investors to realise though, that it is now harder than ever to build a brand on the back of a creator alone.
The recent growth of the UK podcast industry driven by creator podcasts will mean new industry players and a focus on diverse IP opportunities
As more and more creators see success with podcasts, the UK is starting to see growth in production companies, media owners and distributors putting focus on the space. Whether or not we’ll also see a growth in reseller networks beyond the big players, as has happened in the USA, remains to be seen and will likely be driven by the UK market’s ability to truly scale audience numbers.
With an increased focus on the industry and corresponding success, we may well see more podcasts diversifying into other entertainment verticals like literary publishing, live stage shows and even dramatisations.
For those entering the space, a focus on securing the correct IP rights will be imperative for success and the building of value.
The Swifties (fandom)
According to Forbes, the Swiftie fan base has a multi-generational army behind them, with 45% of avid fans identified as Millennials, followed by Baby Boomers (23%), Gen Xers (21%), and Gen Z (11%). This diverse group continues to inspire demand and keep trends fresh, generating consistent headlines and driving economic boosts with their collective buying power for both Taylor Swift’s offerings as well as her formal and informal affiliated brands.
Recently, Taylor’s Swifties also significantly increased the sales of NFL jerseys belonging to her rumoured love interest, Travis Kelce. When Taylor appeared at his NFL game, the sales of Travis Kelce’s No. 87 jersey skyrocketed by approximately 400%.
Interested in learning more? Join us for one of our upcoming Creator Economy events:
- The Role of Brands in the New Creator Economy – 25 April
- The inevitable Death of Gate Keepers and what it Means for the Creator Economy – 15 May
Click here to access the full report.
