NORTH AMERICA CREATOR ECONOMY MARKET SIZE AND SHARE ANALYSIS - GROWTH TRENDS AND FORECASTS (2023 - 2030)

Market Challenges And Opportunities

North America Creator Economy Market Drivers:

• Proliferation of social media platforms: The proliferation of social media platforms like facebook, instagram, tiktok, snapchat, youtube and others has been a major driver for the growth of the creator economy in North America. These platforms provide easy avenues for creators to build an audience, distribute content, and get discovered. They also offer built-in monetization features like advertisement revenue sharing, subscriptions, tipping, and others. Social media has changed the dynamics between creators and fans by allowing direct engagement. Increasing social media penetration across all demographics will continue to boost the creator industry.
• Smartphone penetration and mobile internet: Widespread smartphone adoption and rising mobile internet access has also catalyzed the growth of the creator economy market in North America. Over 90% of Americans own a smartphone in 2022, which has made content creation and consumption on-the-go easier than ever. Video sites like youtube and tiktok are primarily accessed via smartphones only. The rollout of 5G networks will further improve video streaming and access. Mobile devices have removed geographical barriers, thus allowing creators from small towns to build a global fanbase. This democratization will drive more people to start creating.
• Increasing content consumption: The North America creator economy market is experiencing a significant upswing driven by the escalating consumption of digital content. With the advent of a multitude of platforms that cater to diverse forms of media and the omnipresence of high-speed internet, consumers are indulging in an unprecedented volume of content across various formats. This heightened appetite for digital media is not only enabling a new generation of content creators to emerge and flourish but also paving the way for innovative monetization strategies and a more dynamic engagement with audiences. The increase in content consumption represents a core driver of the North America creator economy market, thus indicating a robust potential for growth and expansion in this sector. For instance, U.S., once considered the hotbed for content creators as highlighted by the 2021 creator economy index, is reportedly experiencing a downturn. Stripe's analysis, which provides crucial business and creator financial infrastructure, indicates a 25% reduction in new U.S. creators as compared to the previous year. Moreover, the proportion of content creators based in the U.S. has witnessed a drop of 13%, dipping from 85% to 72%. Conversely, the international scene is thriving, with Thailand, Brazil, and Romania witnessing an approximate 11% increase in content creator numbers. Even in nations like Tanzania, Mozambique, and El Salvador, content monetization is taking off. Stripe is due to the global uptick to the widespread availability of platform X and its enticing ad revenue-sharing monetization program for creators.
• Growing advertisement spending on digital platforms: The burgeoning creator economy in North America is significantly propelled by the increase in advertising expenditures across digital platforms. As brands allocate more funds to online marketing, content creators are tapping into this revenue stream, thereby benefitting from sponsored content deals, advertisement-sharing models, and influencer partnerships. This influx of advertising dollars not only incentivizes higher quality and diverse content production but also fosters a sustainable financial ecosystem for creators, thus fueling growth and innovation within the industry. Consequently, as digital advertisement expenditure continues to rise, so does the vitality and expansion of the North America creator economy market. For instance, according to the research conducted by Mastercard, a leading payment processing entity in North America, 29% of creators have surpassed the US$50,000 revenue mark, positioning them as microbusinesses, while 20% are engaging in their creative endeavors as their primary occupation. In response to these findings, Mastercard introduced its Artist Accelerator program in January 2023. This innovative initiative is set to empower five promising artists by equipping them with Web3 and blockchain technologies to foster their digital entrepreneurial skills. The program offers an educational environment where creators, along with musicians and enthusiasts, can leverage these cutting-edge tools to effectively establish and take ownership of their personal brands.

North America Creator Economy Market Opportunities:

• Emergence of specialized platforms: The growth of specialized platforms tailored to specific creator niches presents a significant growth opportunity. Platforms like Patreon (patronage), Substack (newsletters), Teachable (online courses), Etsy (handmade products) cater to specific monetization models. Similarly niche platforms focused on podcasting, photography, adult content, and others  enable creators to find the right audience. Creators will increasingly leverage multiple platforms to diversify revenue streams. Specialized platforms also invest heavily in creators through promotion, tools and monetary incentives.
• Virtual and Augmented reality: Virtual reality (VR) and augmented reality (AR) content creation presents an emerging opportunity for creators in North America. VR headsets are still in early adoption, but usage is rising driven by gaming and entertainment. As devices get cheaper and more mainstream, it will enable creators to pioneer new immersive, interactive content formats, and stories which were not possible before. Musicians can hold virtual concerts, artists can create 3D spaces, and travel creators can take viewers on first-person tours and so on, where the scope for innovation is immense.
• Non-fungible tokens (NFTs): NFTs have presented a new avenue for creators to monetize digital art, collectibles and experiences. The NFT market surpassed US$40 Bn in 2021, thus indicating strong traction. Visual artists who can mint limited edition NFTs of artwork have a way to sell directly to collectors and fans. Musicians are selling albums and singles as NFTs. Beyond art, NFTs can also represent backstage access, exclusive content, and others. As adoption increases, more mainstream creators will look to leverage NFTs.
• Developing countries: Emerging economies with young demographics but lower ad monetization offer strong growth potential. Countries like India, Brazil, and Indonesia are witnessing increasing smartphone adoption and youths are consuming as well as creating online content. Local language creators who can culturally resonate have a first-mover advantage here. Large platforms are building creator incentive programs focused on these markets. As income levels rise over time, monetization avenues will also improve.

North America Creator Economy Market Restraints:

• Income instability and burnout: The creator industry lacks stability with the earning potential differing significantly across creators. Only a fraction of creators are able to gain massive popularity and convert it into sustainable income. Many struggle to make a decent living after account for platform commissions, taxes and production costs. Managing consistent high output also leads to creative burnout. The pressure to continuously produce content to make money weighs on mental health. The challenges can discourage long-term sustainability. For instance, in January, 2022, according to a report published by Creator Burnout Report by Vibely, an alarming 90% of content creators have faced burnout, with 71% considering abandoning social media and the businesses they've diligently cultivated. Initially embarking on their entrepreneurial journey in content creation out of passion, creators find themselves under relentless pressure to publish, broadcast, and innovate. The cumulative stress and often isolating nature of their profession can adversely affect their well-being, pushing many towards the brink of burnout.
• Copyright issues and demonetization: Copyright strikes and demonetization issues are persistent problems faced by creators on major platforms like youtube and facebook. Use of even small snippets of copyrighted material like songs, news clips, and others without permission can lead to videos being taken down or having ads disabled, thus hampering income. Gaming live streamers also have to be wary of broadcasting licensed music in the background. The copyright risks and unstable revenue can restrict creativity and participation.
• Oversaturation of content: The low barriers to entry have resulted in oversaturation where both platforms and audiences are inundated with content choices. On youtube alone, 500 hours of new video content is uploaded every minute. Rising above the noise to gain visibility and be discovered by target audiences is extremely competitive. Maintaining relevance with consistently high-quality content output is challenging when battling for share of voice and attention. Standing out requires substantial effort.