The Creator Economy Is Booming. Here’s How Businesses Can Tap Into Its Potential

The creator economy has experienced massive growth in recent years. With 50 million people identifying themselves as “creators,” marketers are investing more of their social media budgets in content creator partnerships to take hold of this growing opportunity. This momentum is only expected to continue, putting the creator economy on a path to further grow and thrive.

I reconnected with Jamie Gilpin, Chief Marketing Officer of Sprout Social, an industry-leading provider of cloud-based social media management software, to discuss the potential for businesses with the creator economy. When we last connected, she noted that business investments in social media have increased as consumers rely on social media more.

In our latest conversation, Jamie shared takeaways from Sprout Social’s recent data report on the creator economy, including goals and challenges with creator marketing, and which social platforms and content types have the most creator potential.

Gary Drenik: It’s great to talk with you, Jamie. When we last connected, you discussed how consumers and businesses are using social media more than ever before. How has the social media landscape continued to change over the past year?

Jamie Gilpin: I’m excited to connect again, Gary. Like nearly every business and industry over the past few years, the social media landscape has seen drastic changes. This is due in part to the introduction of new platforms and algorithms, consumer-driven trends and expanded use cases for social. Not only has the use of social media continued to grow, but consumers are more frequently turning to social media to make purchases. According to a recent Prosper Insights & Analytics survey, more consumers are using social media to buy products, with consumers regularly or occasionally making purchases on Facebook (39%), Instagram (29%) and Pinterest (23%).

Beyond social commerce, our research also finds increased interest in the metaverse and emerging technologies, especially among marketers. And our latest report demonstrates increased consumer interest in creator partnerships, and how effective they can be when done correctly. In response to this, marketers are prioritizing the creator economy over other marketing strategies. In fact, the majority of marketers (74%) plan to invest at least a quarter of their social media budgets on content creator partnerships within the next three to six months.

Drenik: It’s interesting to see this impressive growth of creator partnerships, and it’s clear this trend isn’t slowing down. What other opportunities does the creator economy present for brands and their social media strategies?

Gilpin: One of the most surprising findings from our latest report is that generating more audience engagement and reaching new audiences outrank driving revenue when it comes to marketers’ goals for working with creators.

Unlike traditional brand partnerships or sponsored posts that leverage influencers and have a clear goal of selling products, creator partnerships offer marketers a more authentic way to achieve their goals of reaching and engaging with new and existing audiences.

Some of our latest data further underscores the opportunity creator content presents for brands to do this in authentic ways. As the trend of authenticity ranks among the most important creator qualification by consumers and marketers alike, more than half of marketers aim to strengthen their social community and a good portion seek to promote their brand values by leaning on creators. This is further proof that authenticity has become an important qualification by consumers and marketers alike, even impacting business goals as it relates to social.

But, despite the opportunities associated with working with creators, several challenges still exist. Budget is among marketers' most common challenges, in addition to a lack of internal resources and the inability to find creators that align with their values. For marketers, this means that justifying spend on creator content may continue to be difficult.

Drenik: With those goals — and challenges — in mind, what advice do you have for businesses when it comes to choosing the right creator? Are there certain types of content that resonate more with consumers that they should keep in mind as well?

Gilpin: Working with creators will only become more important as social media platforms and consumer expectations evolve. But in order to stand out, marketers must achieve a balance between authenticity and audience relevance. Therefore, understanding what to look for in choosing a creator and the types of content consumers want is critical.

For instance, authentically showing how to use a product or service through educational content ranks as the #1 type of content brands seek from creators. Testimonies, unboxing or reveals, and giveaways or challenges are also popular. And specific to retail categories and media influence, a recent survey from Prosper Insights & Analytics finds consumers are most influenced by non-celebrity bloggers or influencers to purchase beauty products — and this purchasing influence extends to electronics and clothing for Gen-Z consumers as well.

Bringing this to life may look different for marketers across industries. A beauty brand may partner with a creator who is known for makeup reviews, whereas a retailer may opt for a creator with an audience who prefers unboxing content. Marketers should consider this finding as they look for creators to authentically showcase products and do so in a way that resonates with consumers.

Drenik: I understand the value working with creators presents for brands to reach consumers in authentic ways. But what about businesses who can’t afford such partnerships at this time? What advice do you have for them?

Gilpin: Our data and research prove that it doesn’t require a big budget or well-known celebrity to make an impact. Smaller brands will likely find more success partnering with micro or niche influencers rather than big-name celebrities as consumers value creator partnerships that align closely with the brand and their values.

But in addition to creators, I believe that expanding awareness and reaching new audiences can be achieved in a powerful and cost-effective way with brands’ own employees.

Beyond being some of the best advocates for a brand, employees can help attract talent, demonstrate on-brand thought leadership, and drive additional revenue without increasing your ad budget. In fact, content shared by an employee receives 800% more engagement than content shared by brand channels. Employee advocates can drive many of the same benefits as content creators, leading to increased trust and positive brand perception.

Drenik: I would imagine the current economic landscape and market are playing a factor in whether businesses can pursue creator partnerships. What are your thoughts on how brands can connect with and grow their audiences even in these turbulent times?

Gilpin: With news of an economic recession, companies are bracing for changes in consumer behavior and a possible dip in spending. According to a recent Prosper Insights & Analytics survey, 20% of consumers plan on spending less this holiday season compared to last year, based on their present situation and current feelings toward the economy.

While the impact of economic downturns is hard to predict, we know consumers will continue to use and rely on social media.

Because of this, social media must play a role in organizations’ strategies to recession-proof their businesses. Regardless of economic activity, social media provides incredible, cost-effective opportunities for brands to connect with, grow and support their audiences.

Drenik: It has been great to connect with you again Jamie. We appreciate your thoughts on the creator economy. It’s encouraging to see that businesses are realizing social is much more than a tool to drive sales. Creators are an important resource in brands’ quest to build authentic communities and achieve greater brand loyalty.