The Creator Economy is an ecosystem that includes not only the people who create the products and services sold online but also the businesses that have grown up to empower these creators.
It includes content creators, curators, and community builders. It also includes designers, artists, bloggers, influencers, course creators, and anyone who earns money monetizing their talents, knowledge, or skills. ((Darbinyan, Rem. “How AI Is Disrupting the Content Creation Economy.” Forbes, 9 Dec. 2022, www.forbes.com/sites/forbestechcouncil/2022/12/09/how-ai-is-disrupting-the-content-creation-economy/?sh=152adf351dfe))
Key Takeaways:
- The creator economy affects the overall economy.1
- The creator economy is predicted to reach over $200 billion by 2026.2
- Gen Z creators begin earlier and monetize more quickly than previous generations.3
- Creators seek ownership of content and control of interactions with their audiences.4
- Brand and platform investments give creators more opportunities to create.5
- The “Great Resignation” increased the number of people entering the creator economy.6
Market Size & Worth
The creator economy is currently valued at over $104 billion and is projected to grow to over $200 billion by 2026.4 It includes over 300 million total creators and 50 million plus creators and influencers who monetize courses, blogs, vlogs, subscriptions, memberships, and products across multiple platforms to sell directly to the consumer. It also includes platforms that enable creators to share their work.
Creators
What Is a Creator?
The term creator applies to anyone who creates original content and shares it on the internet, whether for a company or independently. One in four people contributes content to the internet.
Of the 300 million creators worldwide, over 50 million are independent creators.4
Since the beginning of the pandemic, 165 million people have become creators.
| 165 Million New Creators Since 2020 | ||
|---|---|---|
| Country | New Creators in Millions | Total Population in Millions |
| Australia | 6 | 25 |
| Brazil | 73 | 213 |
| France | 16 | 67 |
| Germany | 19 | 83 |
| Japan | 18 | 126 |
| South Korea | 17 | 52 |
| Spain | 10 | 47 |
| United Kingdom | 16 | 67 |
| United States | 86 | 328 |
((Adobe “Future of Creativity” Study: 165M+ Creators Joined Creator Economy Since 2020. news.adobe.com/news/news-details/2022/Adobe-Future-of-Creativity-Study-165M-Creators-Joined-Creator-Economy-Since-2020.))
((Adobe “Future of Creativity” Study: 165M+ Creators Joined Creator Economy Since 2020. news.adobe.com/news/news-details/2022/Adobe-Future-of-Creativity-Study-165M-Creators-Joined-Creator-Economy-Since-2020.))
Millennials account for the most significant single percentage of creators; however, members of Gen Z are more likely to become creators than any other demographic.
Gender and Age
- 48% of creators are Millennials born 1981-1996.
- 71% of creators are over 30.
- The average age of creators is 37.
- 36% are 40 or older.
- 22% are between 26 and 39.
- 14% are 16-25, and this number is growing daily.
- 6% are over 60.
- More than half of creators are male.
- 55.7% male
- 44.3% female
- 77% of monetizers started monetizing within the last year.7
- 30% chose monetization to create due to the desire to earn extra money.
- 48% make 50% of their income from creative activities.
While most creators today are over 30 and have a full or part-time job other than creating, the number of 16-25-year-old creators choosing to create rather than attend college is growing daily.
Gen Z creators also tend to monetize more quickly than older creators. These creators saw the rise in demand for content during the pandemic. Since many were in jobs that resulted in layoffs, they needed to find other income as soon as possible. Gen Z’s media savviness made content creation the natural answer to that need.
Gen Z also places less emphasis on a college education due to the proliferation of video content online. They can easily learn what they need from the internet and YouTube videos. This abundance of information allows them to monetize their creations earlier and avoid student loans.8
Gen Z Creators
- 49% of students polled plan to become creators rather than attend college.
These factors and the desire for a passion project make the creator economy more attractive than standard jobs.3
| Current Educational Level of Creators | |
|---|---|
| Bachelor’s degree | 77% |
| Associate’s degree | 10% |
| Master’s degree | 7% |
| High school diploma | 3% |
| Other degrees | 3% |
Society and Culture
- In the United States and the United Kingdom, children are three times more likely to aspire to be content creators than astronauts.
- 29% of children in the United States and
- 30% of children in the United Kingdom want to be content creators.
- 11% want to be astronauts.
- Children in China reverse the preferences:
- 56% want to be astronauts while
- 18% want to be content creators.9
| Reasons People Choose to be Content Creators | |
|---|---|
| 26% | Money |
| 46% | Freedom of expression |
| 28% | Desire to make a difference |
| How Creators Measure Success | |
|---|---|
| 10.70% | Money |
| 2.14% | Followers |
| 17.11% | Engagement |
| 1.34% | Ability to have a positive impact |
| 68.72% | Combination of all the above factors |
However, much like the reasons people become creators, money is not the primary contributing factor to what creators consider success.10
Most Often Created Types of Content
Full-time creators manufacture content around business and marketing. In contrast, part-time creators lean toward personal topics such as art, design, and mental health.
| Content Topics – Full-Time Creators | |
|---|---|
| Entrepreneurship | 37% |
| Personal Development | 29% |
| Marketing | 28% |
| Small Business | 27% |
| Online Business | 26% |
| Content Topics – Part-Time Creators | |
|---|---|
| Personal Development | 23% |
| Art | 19% |
| Design | 14% |
| Crafts | 13% |
| Mental Health | 13% |
((“—.” ConvertKit, 13 May 2022, convertkit.com/reports/creator-economy-2022.))
Monetization
Creators who make a living from their content use several methods to monetize their brand, often with multi-vendor platforms such as Kajabi or Payhip:
- Courses as products
- Course certificates
- Subscriptions
- Membership sites
- Payment installations
- Link-in-bio tools
| Sources of Creator Monetization | |
|---|---|
| Sponsorship and Brand Deals | 77% |
| Courses | 2% |
| Subscriptions and Memberships | 1% |
| Direct Sales of Goods and Services | 5% |
| Advertising | 5% |
((Grin. “Understanding the Creator Economy: A Complete Guide | GRIN.” GRIN – Influencer Marketing Software, 22 Dec. 2022, grin.co/blog/understanding-the-creator-economy. Accessed 25 Dec. 2022.))
Photography, Creative Writing, and Visual Arts are the most often monetized.
| Activities Monetized | Global Total | US | UK | AU | FR | DE | JP | BR | SP | SK |
|---|---|---|---|---|---|---|---|---|---|---|
| Photography | 26% | 23% | 23% | 24% | 22% | 24% | 33% | 31% | 25% | 30% |
| Creative Writing | 16% | 15% | 17% | 19% | 14% | 18% | 8% | 15% | 13% | 22% |
| Visual Arts | 15% | 18% | 17% | 14% | 13% | 11% | 20% | 14% | 14% | 9% |
| Graphic Design | 13% | 15% | 16% | 14% | 12% | 12% | 10% | 17% | 16% | 10% |
| Filmmaking | 11% | 10% | 9% | 11% | 13% | 10% | 8% | 20% | 10% | 11% |
| Crafting (woodwork, metalwork, sculpture, ceramics) | 10% | 9% | 13% | 11% | 13% | 14% | 8% | 10% | 10% | 11% |
| Fashion Design | 10% | 11% | 11% | 15% | 11% | 7% | 6% | 9% | 9% | 8% |
| App/Gaming Development, Website Creation | 10% | 12% | 14% | 11% | 10% | 9% | 7% | 10% | 6% | 9% |
| Music Creation/Production | 9% | 17% | 10% | 11% | 9% | 10% | 7% | 5% | 6% | 6% |
| NFTs (non-fungible tokens) | 8% | 15% | 9% | 7% | 4% | 6% | 3% | 9% | 5% | 10% |
| VR/AR | 7% | 11% | 11% | 7% | 7% | 7% | 5% | 5% | 4% | 8% |
| Podcasting | 6% | 7% | 9% | 7% | 7% | 5% | 3% | 5% | 6% | 6% |
((Adobe. “Future of Creativity Monetization in the Creator Economy.” Adobe, 2022, s23.q4cdn.com/979560357/files/Adobe-Future-of-Creativity-Monetization-Report.pdf. Accessed 7 Nov. 2022.))
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Creator Monetization Improvements
Of the top creators, most use communities, live video, and post-scheduling to grow their businesses.
- 35% of users making $50k+ per year use communities to grow their audiences. The use of community-based platforms is multiplying.
- Community-based platforms allow creators a more direct connection with their users.
- 63% of users say they have tipped their favorite creators online.11
- Users making $50k+ are 1.5 times more likely to use live interaction, such as live streaming and pre-made videos on courses.
- Users making $50k+ are 1.25 times more likely to use available scheduling features to schedule posts or classes over time.12
- 85% of top creators sell more than one product type.
- 31 million users on Instagram use link-in-bio pages.
Subscriptions are one of the more popular monetization methods; however, many platforms take a percentage of the creator’s earnings.
Most Often Used Platforms by Creators
| Platform | Percentage of Creators Using |
|---|---|
| 92% | |
| YouTube | 70% |
| 45% | |
| Blogs | 44% |
| TikTok | 35% |
| 33% | |
| 19% | |
| 15% | |
| Twitch | 6% |
Subscription Fee Rates per Platform
| Platform | Program | Percentage Paid to Platform |
|---|---|---|
| Tip Jar | 0% | |
| Clubhouse | Payments | 0% |
| Stars | 5%-30% | |
| Twitch | Cheer with Bits | 50% |
| Only Fans | Tipping | 20% |
| YouTube | Super Stickers | 30% |
| Badges in Live | 0% | |
| TikTok | Virtual Gifts in Live | 50% |
Best Monetization Channels for Creators
| Platform | Average Monthly Earnings |
|---|---|
| YouTube | $4,118 |
| $3,853 | |
| Personal Blogs | $2,400 |
| TikTok | $1,674 |
While TikTok and YouTube are the most used platforms, TikTok followers are considered less valuable than YouTube and Instagram followers. YouTube and Instagram allow creators to stay in contact with their audiences better than TikTok. As a result, the number of followers on TikTok correlates less closely with the amount of money earned on YouTube and Instagram.15
However, the U.S. government has banned TikTok from government sites, and the House is considering banning it country-wide. India and Afghanistan have current TikTok bans. Pakistan, Bangladesh, and Indonesia have temporarily banned TikTok in the past, although they have now lifted those bans. While TikTok is not as monetarily valuable as some other platforms, a TikTok ban will deny American creators of a primary source of exposure.
Types of Creator Platforms
Most creators who annually make over $50k use multiple platforms to increase earnings. Improved algorithms and creator funds on some of these platforms enable more creators than ever before to monetize their content.
- Portal Platforms (front pages)
- YouTube
- Creation Platforms (tools for creation)
- SoundCloud
- Substack
- Medium
- Roblox
- Twitch
- Sponsorship Platforms (donation and membership sites)
- Howl
- Unlike other platforms, Howl connects creators to brands and charges the retailer rather than the creator.((—. “Startup Howl Tries to Upend Influencer Marketing; Senate Passes TikTok Bill.” The Information, 16 Dec. 2022, www.theinformation.com/articles/startup-howl-tries-to-upend-influencer-marketing-senate-passes-tiktok-bill?rc=eupvpf.))
- Patreon
- OnlyFans
- GoFundMe16
- Howl
Types of Products Sold
79% of creators sell memberships, coaching products, and courses. However, more creators are including digital downloads and physical products they have created.
| Types of Products Sold | |
|---|---|
| Memberships | 35% |
| Coaching | 25% |
| Courses | 19% |
| Digital Downloads | 15% |
| Communities | 10% |
| Merchandise | 6% |
Tools for Creators
- Over 300 new online apps and programs exist to support creators.
- Major platforms have all added ways to support creators. Several platforms either now have or recently had programs to encourage creators. Some of these investments have ended with the downturn in the economy. However, as creator funds from platforms decrease, options for monetization increase:
- Training programs and mentorships
- Financial help
- Management tools
- Financial tools
- Analytics
- Project management
- Marketing tips
- Referral pages
- Apps that allow creators flexibility in creating
- Content creation apps
- Text
- Images and video
- Live stream
- Music and audio
- Games
- Community management tools
- Chat apps
- Link-in-bio
- Livestream
- Newsletters
- Monetization
- Social media sites
- Membership sites
- Apps to connect with brands
- Events
- E-commerce
- Digital products and merchandise
- Courses
- Fan interaction
- Financial tools
- ((Pop-Andonov, Neda. “The 2022 Creator Economy Market Map [300+ Startups].” Influencers Club, 29 Dec. 2022, influencers.club/2022/05/17/creator-economy-market-map.))
- Content creation apps
- Major platforms have all added ways to support creators. Several platforms either now have or recently had programs to encourage creators. Some of these investments have ended with the downturn in the economy. However, as creator funds from platforms decrease, options for monetization increase:
- There are over 300 million total creators worldwide from 9 countries.17
- This total includes over 50 million creators selling their knowledge, skills, and talents directly to consumers via the internet.2
- 47.5 million of those creators consider themselves amateurs.
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Creators Since the Pandemic
- Remote work
- One of the primary reasons people have left jobs since the pandemic of 2020 is to find remote work.
- 43% of people who left their jobs since 2020 left to find remote work.
- 52% of creators have started creating since 2020.
- One of the primary reasons people have left jobs since the pandemic of 2020 is to find remote work.
- Social causes
- 25% of creators use their content to advance social causes.
- Mental health
- Creators overall find creating beneficial to their mental health, especially if they are passionate about their subject.
- Many creators see it as a way to express themselves.
- Other creators see it as a way to support causes they care about.18
- 61% of creators who focus solely on content creation experienced burnout in 2021.7
- New tools on social media sites make it possible to schedule posts ahead of time to alleviate some of the pressure on creators.
- Creators overall find creating beneficial to their mental health, especially if they are passionate about their subject.
- Purchase decisions
- Gen Z consumers, in particular, are more likely to purchase based on creators and influencers.
- 55% of Gen Z consider influencer recommendations one of the most important factors in purchase decisions.19
- Gen Z consumers, in particular, are more likely to purchase based on creators and influencers.
- Remote work
Future Trends & Projected Growth
Market projections predict the global creator economy will grow to over $200 billion by 2026. Several trends are driving this growth.
Venture Capital
- U.S. creator app startups have raised more than $17 billion since early 2021.
- Due to concerns about the economy, venture capital investments fell 30% in the second quarter of 2022.20
- Predictions indicate 2023 will see VC funding return to the higher 2021 level.21
- Out of 301 capital investments in the creator economy, most went to creator services and platforms.22
| Type of Business | Number of Investments |
|---|---|
| Creator Services | 63 |
| Creator Platform | 52 |
| Crypto | 37 |
| Music | 23 |
| Marketing | 22 |
| Gaming | 20 |
| Financial Services | 19 |
| Social Media | 19 |
| Education | 15 |
| Shopping | 15 |
| Live Streaming | 8 |
| Publishing | 8 |
While venture capital may remain sluggish due to the economic downturn, the creator economy is in no danger of slowing. Additionally, more creators enter the market daily, seeking ways to express themselves.
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Trends Driving the Growth of the Creator Economy
Creators as Founders
Creators are moving their fans off social media to personal websites, apps, and monetization tools to better connect with fans.
Creators Are Gaining Power in the Media
- While most platforms have phased out creator funds, some sites, such as Walmart, still have them.
- Rather than having creator funds, most social media sites now have improved monetization methods to increase opportunities for creators to grow their followings.26
- Training and mentorships
- Financial help and tools
- Marketing tips
- Referral pages
- For You pages
- Recommendations
- Membership and subscription pages
The “Great Resignation” has resulted in over 4 million people per month leaving their jobs since November of 2021.27 This trend continues today.
- 4 million people quit their jobs in October of 2022.28
- 63% were looking for a better work/life balance.
- 50% left to seek better pay and benefits.
- 44% plan to start their own business.
- 43% were looking for remote work.
- 41% were looking for a job that fuels their passion.
- Many older employees laid off during Covid are not returning to work.
Predictions indicate 50% of the U.S. workforce will be independent workers by 2025 – 2030. Those workers will join the gig and creator economies.
Challenges for the Creator Economy
Creating a Creator Middle Class
- Currently, only 21% of creators make more than $50k annually.
- Over 46 percent of creators considered full-time make no more than $1000 per year.
- Online platforms are creating more tools and apps to help creators monetize their content which will help develop the creator middle class:
- Content creation apps
- Presentation apps
- Distribution apps
- Funding
- Improved monetization
- Learning and support31
Monetization
-
- 49% of creators say monetizing their content is their biggest challenge.
((“2022 Content Entrepreneur Benchmark Research.” The Tilt, 2022, www.thetilt.com/wp-content/uploads/2022/06/6.17.2022-TheTilt-R3-2022.pdf. Accessed 15 Nov. 2022.)) - Financial companies and banks are becoming more willing to finance creators who meet benchmarks.
- Revenue-based financing is becoming more the norm for creators as more than a dozen firms now offer this as an option for creators.
- Equity-based financing is another option now available for creators; however, revenue-based financing may be the more flexible of the two, depending on the creator.33
- 49% of creators say monetizing their content is their biggest challenge.
Bottom Line
The future of the creator economy looks bright. The number of creators in all age groups and genders multiplies daily. The potential for growth in the creator economy is limitless. The growth of demand for creative content online exploded during the pandemic, and this demand has not dropped to pre-pandemic levels as businesses have reopened. Consumers, particularly Gen Z consumers, rely more on influencers and creative content online to make decisions about work/life balance, purchasing decisions, and working methods.
Media platforms have greatly improved their content creation tools to enable creators to create and monetize more easily. While creators with more significant followings move their fans to their personal websites, these new tools make it easier than ever for new creators to begin creating and monetizing.
Since 2021, venture capital investments in creator services and platforms have reached $17 billion. As businesses have opened back up after the pandemic and the economy has slowed, venture capital investments also slowed during the second half of 2022. However, experts predict these investments will bounce back in 2023, enabling media platforms to continue to create new tools and services for creators.
Internet use and the popularity of creative content online are still well above pre-pandemic levels and show no signs of dropping, ensuring the future of the creator economy.
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- “2022 State of the Creator Economy Report.” ConvertKit, 13 May 2022, convertkit.com/reports/creator-economy-2022. [↩]
- —. “What Is the Creator Economy? Influencer Tools and Trends.” SignalFire, 9 Nov. 2021, signalfire.com/blog/creator-economy. [↩] [↩]
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- Yuan, Jen. “What Is the Creator Economy? Influencer Tools and Trends.” SignalFire, 9 Nov. 2021, signalfire.com/blog/creator-economy. [↩] [↩] [↩] [↩]
- —. “Creator Economy Investors Grow More Discerning; Pinterest Expands Its Creator Fund.” The Information, 28 Mar. 2022, www.theinformation.com/articles/creator-economy-investors-grow-more-discerning-pinterest-expands-its-creator-fund?rc=eupvpf. [↩]
- Parker, Kim, and Juliana Menasce Horowitz. “Majority of Workers Who Quit a Job in 2021 Cite Low Pay, No Opportunities for Advancement, Feeling Disrespected.” Pew Research Center, 10 Mar. 2022, www.pewresearch.org/fact-tank/2022/03/09/majority-of-workers-who-quit-a-job-in-2021-cite-low-pay-no-opportunities-for-advancement-feeling-disrespected. [↩]
- “—.” ConvertKit, 13 May 2022, convertkit.com/reports/creator-economy-2022. [↩] [↩] [↩] [↩]
- Wilson, Josh. “Young and Independent; the Reason Behind the Explosion of Gen Z Social Media Celebrities.” Forbes, 29 Nov. 2022, www.forbes.com/sites/joshwilson/2022/11/29/young-and-independent-the-reason-behind-the-explosion-of-gen-z-social-media-celebrities/?sh=557761fa7376. [↩]
- Berger, Eric. “American Kids Would Much Rather Be YouTubers Than Astronauts.” Ars Technica, 16 July 2019, arstechnica.com/science/2019/07/american-kids-would-much-rather-be-youtubers-than-astronauts. [↩]
- Editorial Staff. “Creator Earnings Breakdown, the Creator Economy Today I NeoReach.” NeoReach | Influencer Marketing Platform, 26 May 2021, neoreach.com/creator-earnings. [↩]
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- Thinkific. “Closing the Gap 2022 Online Learning Trends.” www.thinkific.com, 2022, www.thinkific.com/wp-content/uploads/2022/04/online-learning-trends.pdf. Accessed 29 Nov. 2022. [↩]
- Dameski, Kiril. “The State of the Link-In-Bio Market 2022.” Influencers Club, 22 Dec. 2022, influencers.club/2022/08/12/state-of-the-link-in-bio-market. [↩]
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