“Marketers are finally starting to embrace creator content after many, many years of considering it to be less than or lower quality than studio-produced content,” said Jasmine Enberg, principal analyst at eMarketer in a session at VidCon.
Indeed, there’s a growing convergence between serious business investors and the world of content creators, with more traditional investors recognizing the potential and value of the Creator Economy.
“Marketers are shifting their budgets from traditional and digital channels to influencer marketing, recognizing the authenticity and engagement that creators bring to their campaigns,” Enberg said.
“It’s a pivotal moment for the Creator Economy, as marketers are increasingly embracing creator content after years of skepticism.”
Companies like Coca-Cola are reallocating substantial portions of their advertising budgets to social media and creator collaborations, moving away from traditional TV ads.
“Coca-Cola has a $5 billion marketing budget… almost half of the advertising is going to TikTok creators who are remixing the jingle on TikTok, posting on TikTok,” noted Kaya Yurieff, a reporter covering the Creator Economy at The Information.
Embracing Influencers
There’s also a noticeable shift in budget allocation towards influencer marketing, with brands previously hesitant now investing more in this area.
“They’re also starting to shift more budget into influencer marketing, especially among brands that have been either hesitant to work with creators or those that have just dabbled within influencer marketing,” Enberg said.
She also pointed out a shift towards longer-term partnerships and collaborations with creators, moving away from transactional, one-off influencer campaigns.
This evolution is driven by the increasing sophistication of marketers in working with creators and optimizing their campaigns for better results.
“Marketers are no longer viewing creator content as a supplementary or experimental channel but as a core component of their overall strategy,” she said.
This shift reflects a broader trend towards building deeper and more meaningful relationships with audiences. By collaborating with creators over extended periods, brands can create more authentic and resonant content, fostering greater trust and loyalty among consumers.
However, there remains though a “perceived risk” and need for control over campaigns which are “significant obstacles” for brands hesitant to fully embrace creator partnerships.
“The reality is, in order for a creator and or influencer campaign to really resonate with consumers, you do have to give up control. And brands don’t always like that,” Enberg said.
The Social Factor
Social media platforms are increasingly recognizing the value of creators and are investing in programs and features that support creator growth and monetization. This includes initiatives like YouTube’s Partner Program, TikTok’s Creator Fund, and Instagram’s shopping features.
The panel also warned that reliance on platforms also poses risks for creators. Changes in algorithms or policies can dramatically affect a creator’s visibility and income.
As a result, many creators are seeking to diversify their presence across multiple platforms and build their own direct-to-consumer channels to mitigate these risks.
Investor Interest
Nonetheless, recent quarters have shown an increase in investments in Creator Economy companies and individual creators, with notable funding rounds for creator startups like Beehiiv and Dude Perfect.
This growing interest is driven by several factors, including the increasing maturity of the Creator Economy, the diversification of revenue streams and the emergence of new and innovative business models.
“Investors are recognizing the potential for significant returns in this space, particularly as creators continue to expand their influence and reach across various platforms and industries,” noted Megan Lightcap, an investor at Slow Ventures.
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