Deloitte Report: 83% of Creators Want Multiple Revenue Streams and Higher Share of Income from Brand Sponsorships
Deloitte's The Creator Economy study found creators accepted more than 50% of their income comes from brand partnerships
The creator economy is gaining massive traction among freelance artists, influencers and brand advocates. Working in the creator economy is a beaming opportunity for creators who associate their artworks with big brands and logos. According to Deloitte’s report titled, “The Creator Economy: What Makes Content Creators Tick,” there’s a lot of excitement around Influencer Marketing among creators as well as brands. Both brands and creators are looking to take full advantage of the technology to create high-paying content for brands, platforms and followers.
Here are some of the key takeaways from the report published by Deloitte.
Brand Relevance Tops the List for Creators when They Sign up for a Partnership
Creator economy is creating great possibilities for brands that see influencer marketing as a solid strategy to amplify their values and voice in rapidly shrinking global marketplace. Hola! welcome to the world of brand advocacy.
Creators are slowing moving away from just having a pay-based partnership with brands. There is more to brand partnership with influencers than just monetary value. For instance, 36% of influencers are actively using the products and services of the brands they promote with content or recommendations. 27% of influencers also had an opportunity to personally test the product or service as part of the partnership. But, can you guess what took the cherry from the top for brands? Brand-audience fit!
Not brand popularity or brand values or purpose. That’s a big shift in the creator economy. Especially when the world is witnessing a financial slowdown, creators are confidently sticking to brands for promotions that organically match their content and target audience groups.
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69% of creators mentioned brand relevance among the current audience group is the number one priority for them. It is important for brands to have a clear vision about the persona of their audiences that align with the followers of the influencer at the same time. Having a good idea about who the target audience is can help the brand identify influencers who are popular in the same niche. Most creators confirm working with brands that naturally fit into their existing content plans and organically align with their overall audience targeting strategies.
Creators Name Securing a Stable Brand Partnership and Maintaining These Partnerships as Biggest Challenges
It’s very rare for an influencer to charge a flat rate for services and artwork across multiple brands. But, that’s changing for good now, as creators surveyed for Deloitte’s new report found influencers are finding it very hard to secure brand partnerships (58%) and maintaining these partnerships (46%) for a long term. Other challenges while dealing with brands include receiving timely payments (50%) and negotiating contracts (48%).
While creating organic content for best-fit audience remains the number one priority for influencers before signing up for a brand partnership, developing content for brand promotion after the deal is signed becomes a huge challenge (for 36%). In fact, 38% of creators working with brands have a hard time getting approvals for content they create as part of the sponsored partnerships. Not receiving approvals could lead to cancellation of partnerships and non-payment of income on time.
What makes content creators tick (By Deloitte)
Deloitte found creators are looking for a more stable relationship with their brand partners who can offer long-term collaboration, pay on time and offer growing opportunities to create great content as part of the sponsorship engagements.
Creators are Positive about Earning More than $50k Per Year
Deloitte report found 58% of creators earned less than $50k per year. 41% of creators have an yearly income of more than $50k, of which only 1% earned more than $500k in a year. By next year, the number of creators with income more than $50k would increase significantly, particularly those who could be earning more than $100k per year (44%). One thing that would change for creators is their sole dependence on only brand sponsorship for raising income. By 2024, creators would diversify their sources of income, with nearly one third of these creators pinning new sources of income other than their current brand sponsorships and platform payments. Deloitte has recommended platforms should build in more creator-centric features within their existing functionalities specifically targeting creators and their content. For example, enhancing self-service analytics and content tracking tools for dynamic pricing.
Finding the Groove with Metaverse Content
While Metaverse content continues to be popular among some creators, 27% of creators surveyed by Deloitte are actually skeptical about the relevance of Metaverse content in the next year. The fandom associated with popular influencer categories such as music, fitness and wellness, arts, entertainment, and food photography would continue to boom, there could be emergence of new categories in the industry that generate new sources of income for influencers and content creators. 50% of creators see NFTs as popular assets next year. However, only 1 in 6 creator currently use NFTs to generate revenue from their influencer marketing content. Deloitte has found tremendous opportunities for NFT creators in building members-only access to content, discounts and loyalty programs in the near future.
Deloitte’s report on the Creator Economy is a solid insight into the US-led influencer marketing landscape. For brands and platforms that onboard creators for promotions and sponsored content, technology and strategic planning would be key to succeed in future. New technologies such as Generative AI, NFTs and web3 content would help brands establish new ground rules for creators who help build strong communities and customer experience for popular brands and organizations.
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