Who Will Lead the Creator Economy: AI Or Creators?
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Gone is the era of big media; we are now entering the pinnacle of the content-creator economy. The current creator economy stands at around $104.2 billion in market value. It has successfully bypassed traditional gatekeepers and established the connection between creators and viewers, be they influencers, artists, gamers, and so on. Various businesses, large and small, now collaborate with creators and online influencers to enhance their brand image and visibility amongst fans. As a result, influencer marketing has grown tremendously last six years
But we’re just scratching the surface of the potential in the creator economy. As with other industries, AI will lead the creator economy into the next era, where creators will flourish.
AI is at the Helm of the Creator Economy
One might argue that innovators and creators are at the center of the creator economy, but I see creators as the face, while AI is the science behind the creator ecosystem.
Sure, the creativity and innovation involved in creating content is the responsibility of the content creator, consider things from a business standpoint for a moment: the content has to reach the right audience, and the platform here is the internet.
Content creators agree with this too. According to research, the biggest challenge for content creators is getting their content discovered by the right audience.
Content creation and content recommendation are the equivalents of demand and supply, and content recommendation just so happens to be the foreground of AI. User interests, location, preferences, and hobbies are evaluated to fuel their content consumption through practical content recommendations from various creators.
As I mentioned, a content discovery gap is a massive challenge for content creators, and AI is the best bet to close this gap.
Creator Economy has redefined Social Commerce
You are on a social platform and find an excellent product. But when you click to buy it, you are redirected to another app/website, which breaks immersion. Most mobile shoppers will agree that an intrusive shopping experience is a major turnoff. But with social commerce, this is history. Customers can now not leave the social platform and purchase a product on the platform, introducing a seamless shopping experience that has now become the gold standard. According to Deloitte research, social commerce powered by the creator economy is set to grow to $2 trillion by 2026.
The reason for this is quite simple: buyers and non-buyers consume a lot of content on social media platforms, which is a significant reason for the growth of platforms like TikTok, Instagram, and YouTube. The content creator economy only furthers such user behavior.
A majority of what was previously a retail experience has now been shifted to a social experience. Content creators on these platforms come in as brand influencers, driving marketing for brands and purchases, directing views, and leaving affiliate links to motivate followers. Content creators/influencers are then monetized by companies based on the purchases.
While customers benefit from a seamless shopping experience, companies can conduct transactions on a specific platform without drop-off rates while controlling the entire funnel the buyer goes through.
Brand Partnership-Influencer Marketing: Monetization in the Creator Economy
Platforms like YouTube have been functional for a long time, but the creator economy is fairly recent. One of the primary reasons for the drastic shift towards an online creator economy is social media. AOL, MySpace, and Facebook were initially platforms to connect and find new friends, but the social media explosion was a phenomenon that had more in store, especially for businesses.
The continued use of social media expanded its horizons and gradually resulted in new buyer-driven trends, where people turned to social media platforms for shopping. I remember a time when having a website was the smart ‘business’ thing one could do, but today a social media presence is mandatory if you wish to acquire new users for your business.
And these platforms had their icons- the content creators and influencers with the audience. Brands selling online knew they got closer to their customer with these influencers; even better, there are potential buyers amongst the influencer audience.
With content creators, partnerships with brands aren’t subject to the typical norms. Creators are infusing innovation into promoting the brand’s offerings, and the audience feels a genuine connection towards their favorite content creator. This is where brands can use AI to leverage and reach the right audience using influencers, content, customer behavior, and critical buyer data.
AI is at the core of the reward system for creators while improving brand visibility, influencing users toward the purchase, and improving the brand’s ROI. And just like that, we are ushering in a new era of the content creator economy with a democratized approach.
How Exactly Does AI Help Here?
For starters, content recommendation engines suggest creator content to the relevant target group, making the reach more effective, choosing quantity over quality. The audience gets recommended the content they want to consume and not just something that is popular despite being irrelevant to them.
Brands have great options here. They can choose creators apt for their offerings among the millions, leveraging AI, considering their target audience, consumer behavior, previous purchases, and social media footprint.
The content creator has its fair share of problems, but as with other industries, it is one with great potential. Not all creators are equally rewarded, and not all get the credit they deserve. Niche content creators see fair success, and the content consumption landscape is shifting from conventional quantity to new quality. It is a win for both creators and consumers, but with the application and leveraging of AI, the biggest victors will be businesses.
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