Share this
Understanding the Power of the Creator Economy: Insights from Ed Keller
by Infotools on 12 Jun 2024
The creator economy is booming, reshaping the way brands connect with consumers. In a recent episode of the "Now, That's Significant" podcast, Michael Howard interviewed Ed Keller, CEO of the Keller Advisory Group. Keller, a leading authority in word-of-mouth marketing, influencer dynamics, and consumer insights, provided valuable perspectives on the significance of the creator economy. He shares insights from his recent study, "Unveiling Influence: The Impact of Creators on American Consumers Lives."
The Rising Influence of the Creator Economy
Ed Keller emphasizes the immense scale and impact of the creator economy on consumers. This sector has become a cornerstone of modern marketing, with creators ranging from mega-influencers to everyday individuals sharing content online. Keller's message is clear: brands must recognize the importance of the creator economy to succeed in today's market, where authenticity and genuine connections matter more than ever.
Defining the Creator Economy
The creator economy includes a diverse array of individuals who produce and share content online. Keller points out that these creators often go beyond traditional marketing methods, leveraging their unique voices and perspectives to engage audiences. Interestingly, the most influential creators aren't always celebrities but rather those with specialized knowledge and a dedicated following.
Origins of the Study
Keller's deep involvement in the word-of-mouth and influencer marketing space dates back 20 years. His work led him to recognize the need for accurate measurement in the creator economy. Citing discrepancies in reports from major organizations, Keller embarked on a mission to provide reliable data. His studies aim to offer a clear picture of the creator economy's scale and influence.
Methodology and Research Partners
Keller conducted two significant studies to explore the creator economy. The first study, unveiled in 2023, focused on creators themselves. It involved a nationally representative survey of over 1,000 creators, identifying their earnings and motivations. The second study, released in March 2024, examined the impact of creator content on American consumers. Partnering with Heather Evans and the research technology company Suzy, Keller surveyed 1,150 consumers aged 16 to 54, shedding light on how creator content influences their lives.
The Size of the Creator Economy
Keller's research reveals that the creator economy in the United States encompasses approximately 27 million paid creators, representing 14% of consumers aged 16 to 54. This figure includes a wide range of individuals, from those earning modest amounts to full-time creators making substantial incomes. While over half of these creators earn less than $10,000 annually, a select group with larger followings enjoys significant financial success.
Consumer Engagement with Creator Content
On the consumer side, Keller's study found that 70% of Americans aged 16 to 54 follow creators and influencers. Engagement with creator content is robust, with 40% of followers interacting with this content daily and 20% doing so multiple times a day. This high level of engagement underscores the creator economy's integral role in how people consume information and entertainment.
What Consumers Like and Dislike in Creator Content
From the study, Keller shared some interesting insights into what consumers enjoy and what they prefer to avoid in creator content. Consumers primarily seek entertainment and educational value from creator content. Whether it's learning about the best beaches in New Zealand or finding new recipes, the need for engaging and informative content is clear. Additionally, there is a strong preference for diverse topics, including gaming, sports, travel, and more.
"The top two things that people want out of creator content are entertainment and educational value to help them learn."—Ed Keller
However, consumers dislike content with negative social impacts and repetitive themes. This preference underscores the importance for creators to keep their content fresh and avoid reusing the same material. Algorithms on social media platforms also play a role in content visibility, highlighting the need for creators to understand and leverage these algorithms effectively.
The Superior Impact of Creator Content Over Traditional Advertising
Keller’s study compared traditional ads with creator content across various dimensions. On all of the 280 different dimensions evaluated, creator content outperformed traditional advertising. Key areas where creator content excelled included shareability, relevance, emotional connection, and trustworthiness. This is a significant finding for marketers, as it highlights the need to integrate creator content into their strategies.
"There’s a vital role for creator-driven content in consumers’ lives, and it should be an important part of contemporary marketing strategies."—Ed Keller
Actions Taken by Consumers After Viewing Creator Content
An impressive 80% of consumers took some form of action after viewing creator content. The most common action was researching a brand's website, followed by following the brand on social media and making purchases. This indicates that creator content not only engages viewers but also drives them to interact with brands in meaningful ways.
Categories with High Engagement
Certain categories of creator content saw higher engagement levels. Food, beverage, and cooking content were the most popular, followed closely by entertainment. Other high-engagement categories included beauty and fashion, health and wellness. These findings align with Keller's previous word-of-mouth research, showing that everyday activities and interests dominate consumer discussions and content engagement.
Preferred Platforms for Creator Content
Consumers primarily consumed creator content on Instagram and YouTube, followed by TikTok and Facebook. While there was some variation across age groups, these platforms were popular across the board. Interestingly, podcasts ranked lower in terms of content consumption, highlighting the dominance of visual platforms for creator content.
Key Takeaways for Brands and Marketers
- Recognize the Scale: The creator economy has captured the attention of 70% of Americans aged 16 to 54, with significant daily engagement.
- Leverage Creator Content: Creator content outperforms traditional advertising across various dimensions, making it a vital component of modern marketing strategies.
- Focus on Authenticity: Consumers trust creators with specialized knowledge over celebrity influencers. Brands should collaborate with authentic creators who align with their values.
- Drive Consumer Actions: Creator content effectively drives consumers to take actions such as researching brands and making purchases.
- Diversify Content: Brands should support a wide range of content categories, from food and entertainment to niche interests, to reach diverse audiences.
- Optimize Platforms: Focus on key platforms like Instagram, YouTube, TikTok, and Facebook to maximize reach and engagement.
"Brands can engage with content creators not just monetarily but by providing tools and expertise to make the creators better at what they do."—Ed Keller
In conclusion, Ed Keller's insights underscore the transformative power of the creator economy. By recognizing and engaging with this dynamic sector, brands can navigate a market where authenticity reigns supreme. As the creator economy continues to evolve, staying informed and adaptable will be crucial for brands aiming to thrive in this exciting landscape.
Tune in to "Now, That's Significant" for more insightful discussions on market research trends and innovations.
Share this
- October 2024 (1)
- September 2024 (4)
- August 2024 (6)
- July 2024 (7)
- June 2024 (4)
- May 2024 (7)
- April 2024 (6)
- March 2024 (3)
- February 2024 (8)
- January 2024 (3)
- December 2023 (6)
- November 2023 (5)
- October 2023 (3)
- September 2023 (8)
- August 2023 (4)
- July 2023 (6)
- June 2023 (6)
- May 2023 (3)
- April 2023 (6)
- March 2023 (6)
- February 2023 (4)
- January 2023 (2)
- December 2022 (2)
- November 2022 (8)
- October 2022 (6)
- September 2022 (6)
- August 2022 (7)
- July 2022 (5)
- June 2022 (6)
- May 2022 (5)
- April 2022 (4)
- March 2022 (8)
- February 2022 (7)
- January 2022 (1)
- December 2021 (2)
- November 2021 (2)
- July 2021 (4)
- June 2021 (2)
- May 2021 (4)
- April 2021 (2)
- March 2021 (5)
- February 2021 (3)
- January 2021 (3)
- December 2020 (1)
- November 2020 (5)
- October 2020 (2)
- September 2020 (5)
- August 2020 (4)
- July 2020 (4)
- June 2020 (1)
- May 2020 (3)
- April 2020 (6)
- March 2020 (3)
- February 2020 (4)
- January 2020 (2)
- December 2019 (4)
- November 2019 (4)
- October 2019 (3)
- September 2019 (2)
- August 2019 (4)
- July 2019 (5)
- June 2019 (2)
- May 2019 (4)
- April 2019 (4)
- March 2019 (2)
- February 2019 (4)
- January 2019 (3)
- December 2018 (5)
- November 2018 (2)
- October 2018 (1)
- September 2018 (3)
- August 2018 (5)
- June 2018 (4)
- May 2018 (4)
- April 2018 (3)
- December 2017 (1)
- November 2017 (2)
- October 2017 (1)
- September 2017 (3)
- August 2017 (2)
- June 2017 (2)
- February 2017 (2)
- January 2017 (2)
- December 2016 (2)
- September 2016 (1)
No Comments Yet
Let us know what you think