Make Way For The Creator Economy: What Is It And How Platforms Are Adapting

If you didn’t notice, we are going through a power shift in the way the digital economy works. 

The emergence of social media democratized the sharing of information as it enabled all types of communities to be more densely networked. The ease with which we can create and share content online caused our focus to gradually—but increasingly—move to digital, and with so much information available at the click of a button, our attention became the asset for which brands, advertisers, and platforms compete. Up until now we have been living in the Attention Economy. 

As consumers become more tech savvy and less responsive to ads, influencers’ power in moving their loyal communities remains intact. The strength of influencer marketing lies in the meaningful connections they have nurtured with their audience, which is powered by their relatability, empathy and vulnerability. Creators have been one of the main forces that keep audiences using social platforms—attracting brands to devote more of their ad spend on these platforms— but until not long ago brands and platforms hadn’t realized how important content creators have become. Now, this dynamic is changing.

Because these communities hold incredible potential and are tied to creators, platforms began to realize that they now need creators’ audiences, shifting the bargaining power from platforms to creators and making room for the Creator Economy. And as the Creator Economy ramps up, brands must prepare to follow suit by making changes to their own strategies

What Is The Creator Economy?

The Creator Economy is “made up of the platforms, marketplaces and tools democratizing creative expression and entrepreneurship; empowering an independent creative class to make a living on their passions” (Forbes). This means that creators are not only put in the spotlight, but are also given the opportunity to monetize their fans and their passions.

Although it was only quite recently that the term “Creator Economy” became popular, some platforms started to comprehend the power of creators and their communities earlier, coming up with better solutions for creators to monetize their content—the case with Patreon and OnlyFans for example. These platforms allow followers and fans to get access to exclusive content in exchange for a subscription fee, which is then transferred to creators after the platform’s cut.

With many influencers taking their communities to platforms that offer new opportunities to better capture the value of their content—making platforms like Instagram Reels and TikTok, and Twitch and other gaming channels, battle to attract creators—the internet’s most successful companies are being forced to adapt their business model.

How The Big Social Players Are Now Prioritizing Creators—And Why Brands Should, Too

Unlike before when social channels had the high ground, under this new model platforms are competing for creators—as they are the ones who can better cater to the needs and demands of their communities. The big social players are responding to this shift by implementing several features and tools that put creators in the center stage and compensate them for the content that keeps audiences coming back. 

Twitch, for example, already gives its game streamers more than half of its subscription fees, plus a cut of ad revenue and the money paid to “cheer” their performance. In fact, the platform has put forth a concerted effort to solve chargeback issues and assure donations are secure for streamers, as well as to make their cuts more transparent.

Likewise, TikTok has recently announced that it’s committing £231 million over the next three years to its Creator Fund, an initiative to celebrate and support talent on the platform by rewarding them based on their video performance. Pinterest, Snapchat and Clubhouse adopted their own version of the same strategy, and are also allocating funds to distribute daily among the best and brightest of their creator community. 

Twitter’s endeavors on the other hand, have been towards a tipping system, in which users themselves can make payments to their favorite creators—the so-called “Tip Jar”—similar to Facebook’s paid subscriptions, which were made widely available last year. 

Instagram, too, is preparing to reward influencers and creators who drive sales for brands by using Instagram Shopping features. The company is working on a suite of new tools to help influencers monetize their content and make a living in the long run—including the possibility of earning a commission payment when they generate a sale for a brand on the app.

There’s no doubt that the major social platforms are ramping up their efforts to make creators stick around. Influencers and creators nurture the connections with their communities, playing an increasingly bigger role in guiding consumers through the buying funnel. The future of social media has creators in the spotlight, and just like the major social players did, brands should consider a new approach, too—especially the ones that heavily rely on digital advertising to monetize online content. 

With the rising of the Creator Economy, brands have to acknowledge that they no longer can control the message. Instead, they have to adapt their strategies to become part of the conversation, and associating themselves with the creators who can build trust and deep connections on their behalf is imperative for the ones who want to stay relevant in this new model. 

If you’re ready to start exploring the potential of creators and their communities, check out our work and