How exactly do we define “creators” and what influence do they have on people’s purchasing decisions?
This is something every entrepreneur and small business owner needs to understand to ensure they have a comprehensive marketing strategy in place. In fact, about a third of social media users find new products through influencers. And this trend isn’t just reserved for B2C companies – we’re seeing more and more B2B companies using influencers as part of their marketing strategy.
Here, we’ll look at how these creators are changing consumer habits and driving a new wave of economic activity. I’ll also explore how this disruption is creating opportunities for entrepreneurs and small business owners, and offer tips on how to best leverage this growing area of marketing and advertising to ensure your products or services reach the audience you want.
According to recent research, the creator economy could be worth $480 billion by 2027, so it looks like its influence will only continue to grow. With that in mind, let’s first lay out some definitions before looking at the best approaches.
What is a creator and which ones are important?
A creator is someone who uses digital platforms to create and share content that markets products and services to their audience.
Researchers have struggled to find exact numbers, but the Harvard Business Review concluded that there are around 40 million “economically significant” creators worldwide, although they noted that the number could well be significantly higher. To be considered significant in this study, you had to have more than 1,000 followers and be actively posting content. That may be a low hurdle, but while the mega-influencers may be dominating the headlines, it’s these smaller creators who make up the bulk of the creator economy and therefore hold significant influence.
The transition from passive consumption to active engagement
The creator economy has led to a much more interactive and personal experience than traditional advertising platforms like television. We used to sit back and consume what was put in front of us. Now we interact with creators – we post comments and likes and participate in live streams. This two-way interaction creates a sense of community and loyalty, turning passive consumers into active participants.
The type of content and the platform have changed. Unlike the aggressive sales methods seen in TV commercials, creators often show behind-the-scenes footage (for example, instead of a 30-second commercial for makeup, they show makeup tutorials using specific products), as well as personal stories and live updates to create a more intimate and authentic connection.
This authenticity (or what appears authentic but is in reality often heavily staged) comes with the perception that the creator is an expert in a particular field, but still remains relatable to the audience. The final piece of the puzzle is entertainment – without this, the content will struggle to find its audience, no matter how educational it is.
Influence and trust: the new currency
Once that trust is built, creatives can promote products in a way that audiences find more credible than traditional advertising. Brands, in turn, have recognized this shift and are increasingly collaborating with creatives on influencer marketing campaigns. Any new business owner needs to think about where their current (or future) audience hangs out online, and then look for the key influencers in that space. This collaboration needs to be mutually beneficial: creatives get financial support, while your brand gets access to highly engaged and targeted audiences.
How developers changed the game
By changing the way consumers discover and use products, developers have revolutionized marketing in the following ways:
- They provide “pre-approval” for products: A developer can really stand out by alleviating the information overload that consumers often face when searching online. In their role as curators and educators, developers reduce the need for consumers to wade through a maze of options by highlighting specific products they recommend, thereby streamlining the search process. Entrepreneurs developing niche products should consider this approach a central part of their marketing plan.
- You become a one-person “customer success” function: Developers increase the value of newly discovered products to the average consumer by demonstrating how to best use them. They demystify the complexity of the products and make them more attractive through hands-on demonstrations and tutorials.
- They influence product life cycles: Content creators not only influence demand, but also significantly accelerate product life cycles. To keep their audience engaged, content creators regularly introduce new and unique products – so the business owner must keep this in mind. While the content creator strives for relevance (and therefore is always looking for the latest products and trends), the business owner must ensure they don’t get left behind when it comes to product iterations. In short: you have to feed the machine.
Strategies for companies to leverage the creator economy
For entrepreneurs or small business owners to move forward, it is important to consider whether this creator economy should be part of your marketing and advertising strategy. To this end, I would recommend using four strategies:
Find your audience: An important first step is to find out where your potential audiences are online. Are they active on social networks and if so, on which platforms?
Maintain partnerships: Get a head start by collaborating with developers to develop offerings that resonate in niche markets.
Think “niche”: Unlike older forms of marketing that target the masses, developers tend to focus on very specific interests and communities. Use this knowledge when developing new products.
Use predictive analytics: To ensure your creative partnerships stay strong, do your research (and use predictive analytics) to stay ahead of client trends. This way, you can make sure you’re offering your creative partner something they know they can show on their platform and that their audience will love.
As the creator economy continues to evolve, its influence on consumer behavior is likely to only grow. The direct, personal connections between creators and their audiences will drive the shift toward personalized, community-focused consumption. Brands will increasingly need to adapt to this landscape, focusing on authenticity and building genuine relationships with consumers.
The creator economy is not a passing trend, but a fundamental shift in the way we consume media and make purchasing decisions. As a consumer, observe how you decide what to buy and what influences you today. You can then use this information to develop your creator partnership strategy for your business.
By fostering these important, authentic connections and serving niche markets, you can make your marketing efforts more personal, interactive and community-focused.
The author is Marketing and Partnerships Manager at SPC Free Zone.
