The creator economy has experienced significant growth in recent years. With 50 million people identifying themselves as “creators,” the marketer is investing more of his social media budget into partnerships with content creators to seize this growing opportunity. increase. This momentum is expected to continue, paving the way for further growth and prosperity for the creator economy.
We reached out again to Jamie Gilpin, Chief Marketing Officer at Sprout Social, an industry-leading provider of cloud-based social media management software, to discuss the business potential of the creator economy. When we last connected, she said business investment in social media is increasing as consumers become more dependent on it.
In our latest conversation, Jamie shared takeaways from Sprout Social’s recent data report on the creator economy. This includes the creator her marketing goals and challenges, and which social her platforms and content types have the most potential for creators.
Gary Drenik: It’s an honor to speak with you, Jamie. Last time we met, you talked about how consumers and businesses are using social media more than ever before. How has the social media landscape changed over the past year?
Jamie Gilpin: Gary, I’m excited to connect with you again. Like almost every business and industry over the last few years, the social media landscape has changed dramatically. This is due, in part, to the introduction of new platforms and algorithms, consumer-driven trends, and expanding social use cases. Not only is social media usage continuing to grow, but consumers are using social media more frequently to make purchases. A recent Prosper Insights & Analytics study found that more consumers are using social media to buy products, with consumers on Facebook (39%), Instagram (29%) and Pinterest (23%) I buy regularly or occasionally at
Beyond social commerce, our research found a growing interest in the metaverse and emerging technologies, especially among marketers. A recent report also shows growing consumer interest in creator partnerships and how effective they can be when done right. In response, 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 budget in partnerships with content creators within the next three to six months.
Dorenik: It’s been interesting to see this impressive growth in creator partnerships, and it’s clear that this trend hasn’t slowed down. What other opportunities does the Creator Economy offer 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 outweighs driving revenue when it comes to the goals of marketers working with creators. It means that there is
Unlike traditional brand partnerships and sponsored posts, which have a clear goal of leveraging influencers and selling products, creator partnerships empower marketers to reach and engage with new and existing audiences. It provides a more surefire way to reach your goals.
Some of our latest data further highlights the opportunity creator content offers for brands to do this in an authentic way. As one of the creator qualifications, more than half of marketers aim to strengthen their social community, and a significant percentage rely on creators to drive brand value. This further proves that authenticity has become an important qualification for both consumers and marketers, and is also influencing business goals related to social.
However, despite the opportunities associated with working with creators, some challenges still exist. Budgets are one of the most common challenges marketers face, sometimes lacking internal resources or being unable to find creators who fit their values. This means it can continue to be difficult for marketers to justify spending on a creator’s content.
Dorenik: With these goals and challenges in mind, what advice do you have for businesses when choosing the right creators? Is there content that resonates with consumers that they should keep in mind?
Gilpin: As social media platforms and consumer expectations evolve, collaborating with creators becomes even more important. But to stand out, marketers must balance authenticity with audience relevance. Therefore, it is important to understand what to look for when choosing a creator and what kind of content consumers are looking for.
For example, demonstrating how to use a product or service through educational content ranks as the number one type of content brands look to creators for. Testimonials, unpacking or revealing, giveaways or challenges are also popular.A recent study from Prosper Insights & Analytics found that focusing on retail categories and media influence, consumers are increasingly buying beauty products from non-celebrity bloggers and influencers. I found that I was most influenced to buy . .
Achieving this could be different for marketers across industries. Beauty brands may partner with creators known for their makeup reviews, while retailers may opt for creators whose audiences prefer unboxing content. Marketers should consider this finding when looking for creators who showcase authentic products in ways that resonate with consumers.
Dorenik: We understand the value of working with creators to help brands reach consumers in authentic ways. But what about companies that can’t afford such partnerships at this time? What advice do you have for them?
Gilpin: Our data and research prove that you don’t need big budgets or big names to make an impact. Because of their focus, smaller brands may find more success partnering with micro or niche influencers than big-name celebrities.
But in addition to creators, we believe that growing awareness and reaching new audiences can be achieved in a powerful and cost-effective way by brand employees.
Employees not only become your brand’s best advocates, they can attract talent, provide brand thought leadership, and generate additional revenue without increasing your advertising budget. In fact, content shared by an employee gets him 800% more engagement than content shared by brand channels. Employee advocates promote many of the same benefits as content creators, leading to increased trust and increased brand awareness.
Dorenik: I think the current economic climate and market is a factor in whether companies can pursue partnerships with creators. What are your thoughts on how brands can connect with and grow their audiences in these turbulent times?
Gilpin: With news of a recession, businesses are bracing for possible changes in consumer behavior and lower spending. A recent Prosper Insights & Analytics survey found that 20% of consumers plan to spend less this holiday season compared to last year based on current conditions and their current feelings about the economy.
While it is difficult to predict the impact of the recession, we do know that consumers will continue to use and rely on social media.
For this reason, social media should play a role in strategies to help companies withstand recessions. Regardless of economic activity, social media presents an incredibly cost-effective opportunity for brands to connect, grow and support their audiences.
Dorenik: Nice to meet you again Jamie. Creator He welcomes your opinion about the economy. It’s encouraging to see companies starting to realize that social is more than just a tool to drive sales. Creators are a key resource in a brand’s quest to build authentic communities and achieve her loyalty to the larger brand.