22 November 2024

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Creator Economy

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The creator economy, also known as the passion economy, is built around creators and influencers. While both are at the center of this ecosystem, there’s a distinction between them: creators typically do not seek commercial agreements with companies and generate income directly from their content, whereas influencers enter into agreements with brands and earn from product sales in addition to content creation.

Key Features:

Monetized Content: Income is derived from creating content, such as written works, images, videos, or audio. Social media platforms are the primary distribution channels.

• Thematic Specialization: Creators and influencers often specialize in topics tied to their personal passions.
• Variable Income: Earnings fluctuate based on content monetization for creators and contracts between influencers and companies.
• User Value: Compensation is determined by the audience size and engagement. Creators rely solely on their audience numbers, while influencers also profit from purchase conversions they drive for partnered brands. Audience size, however, doesn’t directly correlate to earnings.

The growth of the creator economy has been exponential, especially during the pandemic years:

• Over 300 million creators by the end of 2022, doubling from 165 million in 2020, as reported by Adobe’s global study The Future of Creator Economy.
• Global revenue exceeding $100 billion, according to Neoreach, which tracks influencer campaigns worldwide.
• In Italy, the market is valued at €1.5 billion, with 350,000 active content creators, per Assoinfluencer estimates.
• $50,000 average annual income for a creator economy worker, according to Statista. On average, creators earn $61 per hour, while influencers earn $78 per hour, based on data from nine countries (US, UK, France, Germany, Spain, Brazil, Australia, Japan, South Korea).

The Turning Point of 2023

In 2023, the creator economy reached a tipping point as the profession became mainstream and caught the attention of regulators. The Economist posed a provocative question: Is this the end of an era and the downfall of influencers? Despite currently low reputation levels, the creator economy continues to expand among users. However, significant changes, including new regulations, are anticipated, particularly in Italy.

Long-Term Investment in Digital Trends

To invest in the long-term megatrends of digital transformation with maximum diversification, it’s advisable to build a portfolio spanning various asset classes. This may involve prioritizing specific strategies in sectors, instruments, or countries. Partnering with top asset management firms, especially those specializing in ESG investments, can provide a strategic edge.