Creator economy
The creator economy, also known as influencer economy, is a platform-driven economy in which creators produce content, products, or services and distribute them directly to their audience through social media platforms and emerging technologies. This economic model is based on the ability of creators to build and maintain communities of users, monetizing their creative activity through multiple channels including advertising, sponsorships, product sales, crowdfunding, and subscription-based services.
Creators include various professional categories such as social media influencers, YouTubers, bloggers, artists, online educators, podcasters, and independent professionals, who use platforms as infrastructure to reach their audience without necessarily relying on traditional intermediaries in the cultural and media industry. According to Goldman Sachs Research, the ongoing growth of the creator economy will likely benefit companies that possess a combination of factors, including a large global user base, access to substantial capital, robust AI-powered recommendation engines, versatile monetization tools, comprehensive data analytics, and integrated e-commerce options. Examples of creator economy software platforms include YouTube, TikTok, Instagram, Facebook, Twitch, Spotify, Substack, OnlyFans and Patreon.
History
In 1997, Stanford University's Paul Saffo suggested that the creator economy first came into being in 1997 as the "new economy". Early creators in that economy worked with animations and illustrations, but at the time there was no available marketplace infrastructure to enable them to generate revenue.The term "creator" was coined by YouTube in 2011 to be used instead of "YouTube star", an expression that at the time could only apply to famous individuals on the platform. The term has since become omnipresent and is used to describe anyone creating any form of online content.
A number of platforms such as TikTok, Snapchat, YouTube, and Facebook have set up funds with which to pay creators.