The power of the Creator Economy can’t be denied …
From TikTok Shop and IG-driven purchases, to Mr. Beast’s YouTube and TV and restaurant empire, enterprising creators can build careers, businesses and legacies on the platforms we all know and love.
Well … some creators, at least.
There’s a big disparity between mega, macro and micro-influencers, and an even bigger disparity between the amount of money that advertisers are pouring into social platforms, and the earnings for the people churning out all that content.
In this episode, we dive into the current state of funding and compensation for content creators and publishers.
The conversation centers on the concentration of advertising spending — with major platforms like Google, Amazon, Meta, and TikTok holding a stronghold on two-thirds of all US ad spend.
Join us as we shed light on the challenges encountered by creators, particularly black creators, who often grapple with the lack of proper credit and financial recompense for their significant contributions to digital platforms.
Tune in to this enlightening discussion to gain a deeper understanding of the challenges and opportunities within the digital ad landscape and the pursuit of fair compensation for content creators and publishers.
Key Moments include:
00:00:02 - Introduction
Tameka and Lynne discuss the lack of funding and compensation for black creators on social media platforms.
00:01:14 - Challenges for Black Creators
Black creators often face demonetization and limited earning potential on platforms like YouTube and Instagram due to algorithmic flagging.
00:05:07 - Tech Giants' Ad Revenue
Four tech giants, including Google, Amazon, and TikTok, receive two-thirds of all US ad spend, while the creators who power these platforms struggle to get paid.
00:09:06 - TikTok's Creator Fund
TikTok's $2 billion Creator Fund, aimed at compensating creators, is being discontinued. However, the new Creativity Program offers higher earnings potential for eligible videos.
00:11:12 - Instagram's Subscription Model
Instagram introduces a subscription feature, allowing creators to monetize their content. The challenge remains to find a balance in compensating creators and publishers in the digital advertising landscape.
00:18:41 - The Future of Publishing
Brian Morrissey and Medialite discuss the changing landscape of the open web and the need for new models in publishing. They explore the challenges of brand safety and suitability and the importance of sustainable models for niche audiences.
00:19:45 - The Need for Sustainable Models
Simon Owens and Brian Morrissey emphasize the need for sustainable models in publishing, moving away from the idea of building massive media companies and focusing on profitability and serving niche audiences.
00:20:55 - Expectations for M&A
The conversation predicts an increase in mergers and acquisitions similar to what has been happening in the CTV (Connected TV) industry. The mention of companies like Meredith and the need for publishers to diversify their offerings beyond just publishing.
00:21:22 - Expanding Beyond Publishing
Jay Friedman encourages publishers to think beyond their traditional roles and consider influencer marketing, audio, video, social media, events, and retail media as additional revenue streams. The mention of golf.com's successful shopping division highlights the investment required for diversification.
00:23:05 - The Evolution of Independent Creators
The conversation predicts the rise of a new economy centered around independent creators, similar to the gig economy. However, it is noted that the current creator economy still operates under the Web 2.0 model and needs to adapt to the changing landscape.
Ep 6 - The Great Ad Spend Divide: How Independent Creators Struggle while Platforms Profit