4 Ways the Creator Economy has Changed Marketing & Advertising Forever
The creator economy has had a profound impact on the world of marketing and advertising today. Traditionally, companies would use paid media in the form of ads published in newspapers, billboards or television to create and distribute their brand messages. They also hired top-notch celebrities and movie stars as their brand ambassadors. But only businesses with deep pockets could afford that.
With the rise of the creator economy, there is a big detour in how brands approach marketing and advertising today. However, before we delve deeper into that discussion, let's understand what makes the ever-evolving world of the creator economy.
What is a Creator Economy?
A creator economy is a diverse group of people who are associated with the content creation in the online space. This includes social media influencers, vloggers, bloggers and conten creators. However, these entities are only the face of the creator economy. There is a lot that goes on in the background. People who are not in front, but drive the economy with their support from behind. Videographers, editors, camera operators, graphic designers, and technology companies that make the software tools that enable creators to create the content are also part of the ecosystem.
In just one decade, the creator economy has boomed and content creation is a serious career for many. It has become an art form that requires a lot of creativity, honesty, reliability and sensitivity. Those who are able to bring these elements into their content get the support of the audience in the form of followers and subscribers.
Brands have witnessed the kind of fandom and following content creators have online. Using talented creators in their marketing campaign is a great way to directly connect with their potential customers or create brand awareness. Celebrity endorsements have lost the charm it used to have and the creator economy has changed the marketing and advertising forever. Here’s how :
#1 Customers want to see real people as brand endorsers
Here are some interesting facts about influencer marketing from a study that was conducted in the UK market-
- 62% of respondents trusted special media influencers more than celebrities
- 46% of respondents said that they are more likely to buy products promoted by social media influencers
These findings give out a clear message that consumers have higher trust factors in people who are like them, and are more likely to use products that they are promoting.
Consumers want to see real people using and endorsing products, rather than being bombarded with ads from companies. As a result, brands have had to become more authentic and transparent in their marketing efforts.
#2 Compelling storytelling has a greater impact on customer’s decision-making -
In the creator economy, storytelling is a key component of successful marketing. Content creators and influencers are often skilled at crafting compelling stories that engage their audiences and create emotional connections with their followers. Brands have had to adapt to this trend by creating more narrative-driven marketing campaigns.
#3 Rise and improvement of advertising platforms -
The rise of the creator economy has led to the creation of new advertising platforms, such as TikTok, Instagram, and YouTube. Due to Indian Government regulation, TikTok is banned in India, as a result, Instagram has become a formidable advertising platform.
Instagram in the past few years has improved its features by manifold. It has also introduced a new algorithm to distribute the content, ensuring that the right content reaches the right audience.
Similarly, YouTube shorts introduced short-form content on the platform which in the two years has become a good space for influencer marketing. Some experts call it the future of influencer marketing. Statistics show that YouTube shorts have garnered a staggering 5 trillion views since it was made public in July 2021.
#4 Facilitates the creation of authentic user-based content for brand awareness-
Influencer marketing is a modern word-of-mouth marketing. There is no better way to generate brand awareness than the user themselves. In the Creator Economy, user-generated content has become a valuable marketing tool. Brands can encourage their customers to create and share content related to their products or services, which can help to build brand awareness and loyalty.
Overall, the Creator Economy has changed the way that brands approach marketing and advertising. The emphasis on authenticity, storytelling, and user-generated content has created new opportunities for brands to connect with their target audiences and build stronger relationships with consumers.
galleri5 is a technology company that facilitates the creator economy by enabling brands and creators to strike a meaningful relationship with marketing insights, performance metrics, and great business results.