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The designer economy has created a buzz on
With the advent of the Internet, the creation of platforms such as YouTube, Instagram, Patreon and TikTok , and a rapidly changing digital landscape, we increasingly seeread content generated by ordinary people like us. We no longer focus on the traditional big business-based revenue model that has come to define previous generations.
Following this change, more and more individuals are entering the economy of the creator , a subset of "the economy of passion ”, With around 50 million people worldwide who consider themselves“ creators ”.
But what does it mean to be a creator? What possible repercussions can this change have on marketing trends? What is driving this economy? Where is it going, and what more can we expect?
Let's take an in-depth look at the different facets of the designer economy. Associated content:
Embracing the Shift: Towards an economy increasingly focused on creators:
Introduction to the economics of creators
Good that you may not be pAs you are familiar with the concept of the designer economy, chances are you will come across some form of it on a regular basis. Subscribed to a YouTuber string ? Inion to tutorials on Patreon or Teachable ? Track your influenceurs on TikTok ? These are just a few iterations that make up the full lineup of the designer economy.
In the content economy, individuals and creatives have access to several online platforms where they can share their talents, passions and skills, often under the form of consumable content, such as videos, tutorials, music, podcasts and written works. Through these platforms, creators are paid through their monetized content, subions or donations, thus creating their own economy.
Creators 'economy, on the y oreilles, has become more accessible to people around the world, giving us a growing number of creators and an equally growing audience. This brings us to the question of whether or not someone can become a creator.
In a very vague sense, yes, these days almost anyone can come up with niche content or quality. We can also say that, to some extent, almost anyone can have their dream job, in the context of the designer economy.
But there is a tendency to romanticize the notion of income from content generated by creators. Yes, it sounds easy, but that feeling of ease and accessibility belies the effort and hard work that comes with creating. Like any other job, creating content, especially the type that resonates with your target audience, involves a lot of hard work.rne and dedication.
In this setup you can be one of the best designers, have top gear range and produce high quality content, but handful of viewers. Some are lucky and become popular or viral in a short period of time. For many others, reaching this milestone can take several years.
Attention Economy vs. Creator Economy
To better understand what the designer economy is, you First you need to know what attention economy is.
How is attention measured and used in a typical attention economy setup?
In the attention economy, an individual 's attention is fundamentally commodified. Treated like a currency, it is exchanged in the context of an influx of information. Imagine this: you are paying attention to a YouTube video while postponing or skipping your other tasks. While it can be almost impossible to measure attention, its value can be inferred from the time a person spends concentrating on a certain thing.
In the late 1990s, Michael Goldhaber postulated the shift from a on materials to an attention-based economy, which heralded our separation from the industrial economy to the more aptly named attention economy. While this new economy is commonly referred to as the "information economy" Goldhaber argues that attention, not information, is a scarce "commodity.
With the birth of Persian social media platforms and the increase in the amount of information in the 2000s, this precious scarce resource was used as currency. You get free or limited accessto a multitude of digital products and services, but the catch is you will have to pay for it with your attention and, to some extent, your personal information.
In the past, content creators depended on platform audiences. However, with the gradual shift from a attention economy to a creator-centric economy, we can observe some notable changes:
- The rise of content creators and the increase in their influence on platforms
- The reduction in barriers to micro-entrepreneurship induced by this influx of creators
- Individuals can discover theirniche interests and connect with like-minded people who then go against what is considered mainstream
These changes have resulted in a palpable shift in power, with online platforms scrambling to give creators tools that can help them monetize their views or their engagement. public.
Creator Economy and Engagement
This economy emphasizes engagement, community engagement to be precise. A creator capable of mastering management is more likely to succeed in this economy.
How do creators make money online?
Designers can earn moneygent online in several ways. Here are some of the more common ways:
- Share of ad revenue
- Creation or publication of sponsored content
- Paid subions
- Sell their own merchandise
- Digital content sales
- Independent companies
D ' other popular niches include live broadcasts, podcasts and, more recently.ment, NFTs or non-fungible tokens.
The content economy is overturning traditional ways of making money. These creators should no longer work for a boss or be linked to large companies or labels. Nowadays, there are many avenues for creators to market their talents and skills online. Artists, for example, can showcase their designs on sites like Etsy or Shopify. Players can do live broadcasts on platforms such as Twitch and Mixer.
Creators can even
How this is changing marketing practices
We can still see the prevalence of s among some of our favorite designer 's content. You are very familiar with ads in the middle of videos, ads that can't be ignored, or pop-up ads that sometimes appear before an article.
These interrupt consumer engagement with content, interrupting the experience and creating a sense of disconnection between creator and audience, and this is something that needs to be improved. This, in turn, signals a need for change in the healthcare industry.
Jiri Kupiainen, CEO of Matchmade, suggests that creators should have control over the accompanying content in order to preservethe engagement of the audience.
Well, what about the big social media companies?
Social media giants like Facebook, YouTube, and TikTok make money from ad exchanges. However, according to Kupiainen, this business model will not work with the economy of long-term creators, whose needs are mainly: a) focus on the creator and b) audience engagement.
It predicts several significant changes in the way the online business model will be driven in the context of the designer economy:
Focus on designer-powered
In what could be considered a radical suggestion, Kupiainen postulates that the use of reused and remixed designer content as contentenu will become common practice. These types of content generate high engagement at a relatively low cost, making them a great alternative fodder to fuel this traditional online model without losing sight of the creator.
Using creator-based targeting
Imagine this scenario : you've been looking for hiking boots a lot lately. When you open a video on YouTube, before it starts, you see an ad for the latest model of hiking shoes from your favorite brand.
Now what Kupiainen predicts is a shift from interest-based ad targeting to creator-based targeting. Instead of seeing s for hiking shoes, you'll see s of your favorite content creators promoting something that could go wrong.may interest you as a fan.
The rise of the various markets
Kupiainen predicts the rise of unique markets for creator media inventory. These markets will, in a way, be competing to see which one is able to bring together creators, advertisers and platforms first.
On the one hand, platform-owned markets, while initially getting some traction, don't will not be able to fully meet the changing needs of the economy of creators. On the other hand, independent markets will thrive thanks to the ambiguous relationship between online platforms and creators.
From these two elements, the result will be a hybrid market capable of exploiting big data and learning automatic for moreefficiency, while still being able to make “human” decisions.
1000 fans? Try to aim for 100 true fans
Many creators dream of being able to live off their income from their content. A popular essay by Kevin Kelly claims that for a designer to be successful, heOnly needs thousands of real fans, or fans willing to buy whatever their favorite creator does.
If you are able to form a group of 1,000 loyal fans who spend an average of $ 100 per person per an, then you, as the creator, can earn enough money to make a living from content creation.
However, Li Jin , a venture capitalist, comes up with something more quirky: making money with fewer fans. She postulates that creators can make more money by having just a hundred super fans willing to pay them up to $ 1000 a year.
How does it work?
Let's say that a creator offers quality content that he decides to publish online for free. They can rack up huge success through horizontal social platforms (think general platforms like Facebook or Twitter) or through mailing lists.
The creator can then take advantage of some of these fans and turn them into real fans who will frequent the high-value content from the creator. , whether in the form of access to exclusive content or access to additional value-added content.
So how can creators win their share of loyal super fans? How can a creator encourage their fans to spend a lot of money on them?
By offering its fans a product that has significant or objective value.
The creators understand that fans have a desire to improve and transform themselves. This is why they provide them with exclusive, value-added content that can help transform an aspect of their life, whether it is their health and well-being, their work or their education.
Think of it this way: in a real, offline environment, people are willing to pay for services of skilled professionals who can help improve their lives. This "value" mindset is found in the online world and has prompted content creators to deliver content following the value model.
Li Jin then suggests a “recipe” that can help creators earn more while having fewer fans: go in a niche and use their audience's desire for results as leverage. But the "recipe" goes beyond that et calls four fundamental principles:
- Unique and high quality content
- Being able to deliver real value and results
- Access to exclusive content with added value, recognition by the creator and bringing a sense of high social status (regarding the public)
How creators use the content economy
How the creatorshave they used the content economy r over the years?
In addition to creating music, videos, and live broadcasts, creators have gotten more creative in delivering of content to their audience. They also ventured into The Kingdom of marketing d 'influence , sponsorship, fan engagement, online courses and merchandise.
Let's take a look at some of the most popular avenues for content creators :
- Electronic books
With these platforms there are several ways that content creators make money. According to Ish Baid, founder and CEO of Virtually, creators have used the content economy to generate income in three main ways: mailings, donations, and sales.
- Advertisements. Content is monetized via Google AdSense. Online platforms such as Google or Facebook present products to your audience, the profits of which will be squeezed in half between the creator and the distributor. This avenue works by monetizing traffic to a publisher's or content creator's website.
Two other popular forms of ad-based monetization, besides AdSense, are brand sponsorship and affiliation l inks.
Brand referrals give content creators the ability to promote a particular brand and get paid for it. to do. Many businesses are taking this train because they can expect up to 10x higher ROI when their brand is trusted by a content creator, compared to traditional methods such as pop-ups. or banner them.
Meanwhile, affiliate links are a double-edged sword. On the one hand, creators can get discount affiliate links for successful sales. On the other hand, they can end up promoting a product for free if no one ends up buying products using their affiliate links.
- Donations. Donations are what they are at face value: money given to a designer by his clients who expect nothing in return . The most popular ways to donate include Patreon and Ko-fi.
Donations can be a regular source of income, depending on the platform. However, this may deter some content creators, as some platforms can incur high transaction fees. The amounts of donations can beent also vary.
- Sales. One of the emerging platforms for content monetization is selling products or services. Some of the most popular products released by designers include clothing, e-books, online courses, and artwork.
Meanwhile, some content creators are offering services such as speaking engagements or freelance writing. This avenue is gaining popularity as creators tend to get 100% of the profits. It is also relatively easy to get in. However, according to Baid, revenue based on sales can be time consuming and require an upfront investment.
YouTub Creators, for example, can monetize their content through Google Adsense, sponsorships and patronage. But before they can start to reap any profit from the videos, there are a number of factors that they need to consider such as optimizing their content for the YouTube search engine and creating engaging, high-quality content. .
What does the economy hold for creators?
There is no denying the seismic shift to a more creator-driven economy. This new content economy has made it possible for millions of people around the world to do what they love and share their skills, while being able to generate income through audience engagement. Over the years, content creators have carved out a significant presence for themselves, both online and offline, creatingthus their own unique economy.
This change also signals the slow but eventual departure of large companies dictating and limiting what the public can see or what that he can access. Traditional models are being broken down, all in the name of being able to meet the needs of this new economy.
What we are seeing right now is an influx of limitless opportunities that come with the economy of creators. We can also expect this economy to persify as businesses and creators continue to find new ways to reach their audiences. other pathways are also being adjusted or developed to meet the changing needs of
The economy creators has given us a more democratic view of consumerism, giving creators a way todo what they love, while allowing audiences to have a say in the type of content they actually want to consume or frequent.