The pandemic’s impact on various sectors varied, favouring the creator economy, which experienced substantial growth as more people engaged with content. This surge led to the creator economy’s valuation at around $250 billion, encompassing influencer earnings and platform-generated ad revenue. Brands spend over $6 billion annually on creator-sponsored content, and projections suggest the industry’s value could nearly double to $480 billion by 2027. In response, major content platforms are expected to invest more in short-form content to attract creators. Instagram Reels’ revenue share is predicted to rise from 4% in 2022 to 23% in 2027, yielding $20.5 billion. Similarly, YouTube shorts’ contribution to revenue is projected to jump from 2.5% ($750 million) in 2022 to 26% ($11.6 billion) in 2027. Most creators are Millennials or Gen Xers, with Gen Z’s representation expected to increase. While the report presents optimistic data, VC funding for creator-owned firms saw a decline from $7 billion in 2021 to $4.3 billion in 2022, raising questions about future trends.
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