The pandemic forced us to entertain ourselves in front of our screens, which led to a huge demand for content and an upswing for the creator economy. Creators typically develop content that lives on various digital platforms such as YouTube, TikTok, Instagram, and Snap. There are several ways that creators make money. They get a share of ad revenues as advertisers appear on their feeds. Another is they get brand sponsorships to create influencer campaigns. And yes, they sell merch. But how’s that adding up? 

Like every gold rush, including the Internet, creators are finding the post-pandemic world is fraught with challenges. Living off the “eyeballs” of online fans is harder than it looks.

But that doesn’t mean the creator economy is going away; it does mean that it will rightsize and that creatives will need to learn to be as creative about their outlets as they are about their content.

A couple of factoids

• Creator mania got sober but it’s getting tipsy again. The Information’s database of 350+ companies in the creator economy reported a substantial decrease in funding in Q4 2022 but is seeing new investment in 2024. (Story behind paywall.)
• Reported earnings  on YouTube are anywhere between $3,400 to $30,000 for 1 million views according to Business Insider. That’s a huge range. 
• A content creator in a corporate job (typically handling social media) can average about $41k annually which is kinda tough to live on. 
• According to ZipRecruiter, the average YouTuber makes around $60,000 a year. Other sources cite the majority of YouTube creators making between $10K - $40K. A lot depends on the whims of the platforms as to how they’re compensating at any given moment, which can change rapidly and without notice. 
• Hootsuite’s 2023 study gives an in-depth account of what YouTube pays on Good Morning America. He talked about how colleges are now teaching business classes in creator-dom. Newly formed groups like the Creators Guild are hoping to become the Sag-Aftra of the creator world.

According to Kajabi's State of Creator ‘24 Report, success comes to those who diversify. Of course, for Kajabi, which is an online course-building platform, these results may be self-promotional, but the diversification message is a good one. Not having all your eggs in one basket is timeless advice. 

Creator-Driven Events

And that got us thinking about partnering with creators at events. A great way to bring new energy and authenticity into your events is to put a creator to work. Brian Tong and iJustine parlayed their sizable YouTube followings into being the ideal folks to host CES’s video coverage. At NY Toy Fair, creators and influencers were selected to vote on top toy picks. Creators are helping to launch new products. And 87% of shoppers admit they were inspired by an influencer to make a purchase.

At VEG, we’ve been approached by several trade associations to strategize on how to include more (and the right) creators at their events. Budgets that used to go to courting the press are being reallocated to creators and influencers. In the Creator Economy Report, the Interactive Advertising Bureau (IAB) and research agency Talk Shoppe found 44% more advertisers plan to increase their investment in content creators in 2024. 

Bottom line: The creator economy is here to stay and as the industry matures you’ll see creators everywhere. 

Reading List

• David Adler, friend of VEG and a recent guest at one of our meetups, has a new book titled Harnessing Serendipity. It shows how masterful conveners of all ilk create unforgettable experiences.
• Cathy Hackl, an early guest at our VEG meetups, and the hardest working gal in the metaverse, has several great books on how the metaverse will change everything, but one of our favorites is Into the Metaverse: Essential Business Opportunities.
• Alvin Wang and Louis Rosenberg’s book Our Next Reality is about to hit the shelves. They’ll be speaking at our meetup on Feb 29th.