Which forms of content are proving to be the most lucrative for content creators?
Content creation — a vital cog in the creator’s economy wheel
In recent years, the content creation ecosystem has grown at an unprecedented rate. Content creators are ultimately marketers using content creation as an Inbound Marketing approach enabling consumers to find a business or a brand. In this content-driven ecosystem where competition is already cut-throat, creators need to cut through the noise and work to strategize their content that is easily monetizable, scalable, and connects with the target audience.
The Creator economy is like a funnel, with each layer built atop the other. The first layer is content distribution, primarily the domain of social media giants like YouTube, Facebook, Instagram, Twitter, and rising companies like TikTok, Twitch, etc. These platforms gave creators a mass reach, thus creating a new clan of Social media Influencers and opening up a whole new world of Influencer Marketing, which is the second layer. Brands and creators connected on social media platforms for collaborations and sponsored posts, giving creators and influencers are chance to monetize their talent.
The third layer of the creator economy is all about business building, where creators have evolved into creator-preneurs, which is where we are now. Creators have finally begun stepping out of traditional and algorithm-driven platforms and seeking other options to generate multiple revenue streams. This is why developing a content strategy, and content diversification is vital so that platforms and tools available to the creators are utilized efficiently for a sustainable and profitable business.
Here are some content-generation-related stats for you to consider.
- 41% of creators are producing more video/graphic content
- 10% of marketers create blogs
- 55% focus on improving content quality
- 24% of creators focus on diversified and new content.
According to a new Adobe survey, around 48% of creators are currently making money from their creative endeavors.
Types of content and platforms
The creator economy is constantly evolving, prompting creators to keep up with the changing landscape. The best thing about this booming ecosystem is that it allows everyone to participate. However, their success level depends on — the type and the content quality, the platform they choose to display their work, and the connection they form with the audience as a creator.
According to a Hubspot survey, 85% of marketers/creators consider short-form content the most effective social media format. It also has the highest ROI, while 47% believe that short-form is more likely to go viral. But again, platform choice depends upon the targeted audience.
Gen Z is the target audience for the younger breed of creators, so they prefer to create short videos with a run time of 60 seconds to 2 minutes. TikTok recorded a 180% growth rate during the pandemic thanks to users between the 15–25 age bracket. Hordes of young creators leveraged TikTok to go viral and got instant success. TikToker Charli D’Amelio rose to fame by posting dance videos and now has a net worth of $20M with the highest no. of followers. However, Instagram is still a favorite amongst content creators for monetization. Take Khabe Lame, who charges $750k per IG reel clip. Kim Kardashian recently charged $250k for promoting EtheruemMax.
YouTube is consumed both by gen-Z and millennials. However, millennials are more likely to be inclined toward YouTube. Furthermore, discounting the Shorts feature, YouTube is more suited for long-form content creators, although it calls for a more professional and extensive setting. Therefore, some level of investment by creators is required. Another long-form content format that produces significant ROI is blogging.
Facebook is still the most popular social media platform, although its popularity, especially amongst youngsters, is declining. But it offers monetization, and creator Nas Daily made $400k+ monthly average income till 2019 from his content, FaceBook ads, and public speaking gigs.
How to leverage the third layer of the creator’s economy with content?
As we mentioned, creators are in the third phase of their careers, where the entrepreneurial mindset is taking root. Although 80% of the revenue source is still brand deals and sponsored posts, established creators and even the budding ones are looking past the conventional revenue channels, mainly due to the unreliability of deals. Therefore, the best way forward for creators is to create their own brand using content in the back end to generate a sustainable income in the long run.
Creators like Charlie and Nas Daily have gone beyond simply being influencers launching their ventures. Charlie earns via her podcast, beauty brand, and TV shows besides endorsements. Nas Daily has launched Nas Academy, teaching new creators in skill development and more.
On the other hand, secondary or niche-based platforms are slowly but surely shifting the power dynamics back into the hands of creators. They are turning top followers away from social media giant platforms and onto their websites, apps, channels, and monetization tools.
Niche platforms focus on targeting particular groups. E,g, “Untappd” is all about beer. They also have a higher organic reach than platforms like Facebook and Instagram, where creators remain at the mercy of platform push and algorithms. The niche-based platforms provide numerous possibilities for content marketing and opportunities to reach and connect with target audiences faster than their giant counterparts.
Additionally, these platforms offer various monetization models to creators. They can make money through Subscription fees, membership fees and per-per-view. Fans can pay and get access to unique, members-only content on platforms such as Twitch, YouTube, and Patreon.
To utilize these platforms for all their worth, you need to find a good niche in your hand, depending upon your skills and expertise. To find your niche refer to our other blog on the same.
Creators also make money through -
- Affiliate links
- Selling Online courses
- Selling Merchandise
- Live/virtual events
- Ad placements
- VIP meetups
- Fan clubs
- Creating NFTs
How are social media giants responding to the trend?
The rise of niche-based platforms has prompted the top social media companies to announce various creators’ funds and other monetization programs for creators. For instance, Meta’s Reels Play bonus program will allow creators to cross-post their Insta Reels to Facebook and monetize them.
Besides a 1 billion dollar investment, Mark Zuckerberg recently announced that creators won’t have to share a cut of their revenue until 2024. Like Meta, other platforms have content-driven programs. For example, YouTube introduced the $100 million Shorts Program, Tiktok’s $200 million creator fund, and the Instagram Live badges program allows users to send money during live streams.
Rise of Web3
Web3 is turning an everyday creator into a decentralized creator, thanks to the efforts of Web3 influencers. Many creators especially artists, are being encouraged to convert their work into NFTs.
NFTs allow them to get complete content ownership and eliminate third-party roles giving a better value to their work. For instance, OpenSea charges a 2.5% creator fee, and the rest goes to creators. They also earn through royalties, a great passive income source on a set percentage.
The global NFT market size in 2021 was $4.36B. It is forecasted to be a $20 billion market by 2028 growing at 23.9% CAGR.
The takeaway for content creators
As the creator economy grows, so does the competition. Content must stand out, or it will cease to add value or help in a creator’s career growth. Creating content that keeps up with the ever-changing trends and knows exactly what works for you as a creator is vital.
Let’s say if your business is your kingdom, you are the king, and content is the amour. Choosing the right amour/content will decide if your kingdom/business eventually runs its course or becomes an empire.
Spreadd is a platform primarily for creators and influencers looking to carve a niche through their content in the giant creator ecosystem. We aim to be a reliable support system helping you on your journey toward success. Connect with us, and we promise to make your creator journey a cakewalk. Let’s figure it out together.
Follow Us! Stay up to date with the latest at Spreadd:
