In the recent years, the digital landscape has witnessed a remarkable shift in the way creators can monetise their content. Several platforms, such as YouTube, TikTok, and Instagram, have introduced diversified income streams for creators, allowing them to transform their skills and passion into profitable ventures. The creator economy’s total addressable market is projected to double in size over the next five years, skyrocketing from $250 billion to $480 billion by 2027, as per Goldman Sachs research.
Clearly, there will be a massive opportunity for creators across the world to earn. However, the pace and scale at which they will earn eventually depend on the monetisation methods of individual social media platforms. One prominent monetisation avenue is the opportunity to share a percentage of the advertising revenue earned by the platform with the content creators.
Also Read: Elon Musk says Twitter will pay verified content creators for ads in their replies
Other than this, leading platforms like Instagram and TikTok have created subscription-based models or premium content tiers. These allow creators to offer and earn from exclusive content such as tutorials or personalised videos. This allows creators to not only earn more from their content, but also form deeper connections with their most engaged audiences.
Then, there is the key revenue-generating avenue – brand partnerships. Since the advent of influencer marketing, creators have become indispensable for brands looking to engage their target audience in meaningful ways. Influencers are earning significant amounts based on endorsements, product placements, and authentic content creations under brand partnerships. Apart from this, merchandise sales and crowdfunding can become income streams for creators.
The Twitter Overhaul
Since Elon Musk’s acquisition of Twitter, there has been a lot of change in the platform’s operations. Chief among these changes are the steps taken to make the platform more lucrative for creators. For instance, in April 2023, he announced that creators could monetize all forms of content on the platform across the globe. Through paid subscriptions, the platform now pays creators 97 percent of the revenue up to $50,000 in lifetime earnings, after which the revenue is reduced to 80 percent for creators.
The platform’s latest update is yet another step towards becoming a creator-centric platform. The decision to pay verified creators for ads served on their replies will create a new revenue funnel for them. It will create a wider network of ad value generation for Twitter beyond the promoted ads that appear in the feed. Considering that Elon Musk has announced a sum of $5 million to creators under ads served, this will allow Twitter personalities with a genuine/dedicated following to earn substantially through all forms of posts.
While this is a positive step for both creators and the platform itself, it is not certain how much this move will contribute to the creators’ total earnings from Twitter.
As mentioned above, branded content is the key revenue-generating avenue for influencers, and ad revenue accounts for a very small part of the pie. Simply put, only time will tell how this feature evolves and helps creators increase their earnings by a considerable number. Till then, we can consider it a step in the right direction for the increasingly creator-focused platform.
— The author, Kunal Kishore, is Co-Founder & COO, ClanConnect. The views expressed are personal
(Edited by : C H Unnikrishnan)
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