The Creator Economy is the Future of Marketing
Insights from Delbert, a seasoned marketing leader in consumer brands, now at the helm of a global dating app.
The creator economy is not just a trend; it is the future of marketing. These are 5 drivers that explain why the future of marketing is all about creators.
Higher Interest Rates
In a higher interest rate environment, the cost of capital is more expensive. This has led to many layoffs, cost optimisations, down rounds, and a refocusing on profitability.
From a marketing perspective, the days of having a blank check to drive growth are gone.
Dominance of TikTok
One key driver of success for TikTok has been how it has democratised becoming a creator more than any other platform to date.
Through their algorithm, they’ve given opportunities for people with zero followers to gain virality. With tools like CapCut, they’ve lowered the barrier to entry.
Proliferation of Creator Monetisation Paths
In the past, aside from ad revenue sharing—which only YouTube offered and only for creators with a sufficient following—the only other way to make money was through ad hoc deals with brands.
Today, with the proliferation of ad revenue-sharing models, it’s easier than ever for creators to monetise their content; see Spark Ads from TikTok.
Emergence of AI
The emergence of generative AI technology has further lowered the barrier to becoming a creator.
Need ideas for a script or content calendar? There’s an AI for that. Need images or video samples? There’s an AI for that. Need to make more selfie videos? There’s an AI for that.
Deterioration of Trust in Institutions
Trust in media is at an all-time low, and I’d argue this extends to big institutional brands as well.
Not a week goes by without a new gaffe from a major brand, from Boeing’s issues to Adobe recently claiming that all your content belongs to them.
Synthesis
What do you get when you combine all these factors?
You have the financial incentive, through higher costs of capital, to make marketing even more efficient.
You have a supply-driven cost advantage in producing creator content as more people become creators.
Investment in this space further drives more individuals to cash in, thereby increasing supply.
Finally, as AI develops further, it allows more people to create, driving up supply even more.
Traditional forms of outreach are becoming less effective as people are increasingly distrustful of them.
About Delbert
Delbert is a brand creator and marketing leader with over 15 years of proven experience in building businesses. He learned the fundamentals of FMCG at P&G, then jumped into a zero-to-one role at a telco startup, and is now scaling an online dating business globally. His expertise lies in strategy, P&L management, brand development, and growth.
