The social media influencer market is growing at an unprecedented rate owing to several factors such as the rising popularity of digital media, affordable smartphones, and easily available internet, the impact that influencers have on their audience, and much more.
The growing importance of influencer marketing is also confirmed by the fact that organizations are spending more on this type of marketing activity. As various studies have shown, the range of influencer use in an organization’s marketing activities is constantly increasing. Influencer Marketing Benchmark Report: 2020 reveals that the value of influencer marketing as an industry has increased from $ 1.7 billion in 2016 to $ 6.5 billion in 2019 and $ 9.7 billion in 2020.
The total size of the creator economy is estimated to be over $ 100 billion. Over the last decade, major online platforms such as Facebook, Snap, Mx Taka Tak, Moj and YouTube have reached billions of dollars in revenue. This success has been a result of the varied user content on these platforms.
Additionally, with the changing workplace policies and the flexibility of working from home, the creator economy is facing an influx of ambitious creators. Many prefer the creator economy as a part-time job to earn additional cash. The massive growth of the creator economy continues to skyrocket in the industry boom triggered by the Covid 19 pandemic.
According to Signal Fire, of the 50 million “creators” that currently exist, about 2 million are professionals. The remaining 48 million are amateurs. Many influencers focus on economic interests that the industry has to offer, making this profession one of the most fascinating professions of the 21st century. Recently, in Cannes, I’ve seen notable brands, including L’Oral, investing heavily in influencers rather than celebrities.
The above points state that the influencer marketing industry is on a boom and both brands and influencers are benefitting from it. Newer technology and the use of NFTs in the influencer marketing space have also introduced newer transformations and innovations that are grasping the attention of the audiences.
Future of creator economy
Influencers today must evolve and adapt to become a part of the metaverse space. This will enable them to offer new experiences to the consumers. The influencers today can collaborate with brands to make bigger gains through affiliate marketing. For instance, bigger brands like Myntra are offering affiliate marketing to influencers which helps them gain more income in addition to the collaboration charges.
Newer techs such as live streaming can help influencers who want to grow on other platforms and help them gain additional viewership and popularity. Additionally, this can also become a great opportunity for additional income, because one can easily see the size of the audience and how many people made a purchase or visited the brands website as a result. On the other hand, it also benefits the brands. The biggest benefit for the brand is that creating a live video together decreases production time and increases authenticity.
Renowned celebrities and influencers such as Katrina Kaif and Nidhi Katiyar have started their beauty line in a domain that is their expertise, thereby creating products that they know the end consumer is looking for. Hence, the influencers who begin their journey on social media are growing to begin startups and brands that will help them grow financially. Looking at the bigger picture influencer marketing and social media have created an amalgamation that is transforming lives for numerous individuals across the globe.
– The views expressed are solely of the author and ETBrandEquity.com does not necessarily subscribe to it. ETBrandEquity.com shall not be responsible for any damage caused to any person/organisation directly or indirectly.