Accelerating Transition

“The so-called “creator economy” has mushroomed and is expected to grow even more in the coming years, according to Goldman Sachs Research. 

Individual people with their own brands and online audiences have emerged as one of the biggest developments of the digital age. The ecosystem is expanding for a number of reasons, including the increase in digital media consumption and the advent of technology that has lowered barriers to content creation, Eric Sheridan, senior equity research analyst covering the U.S. Internet sector, writes in the team’s report. New platforms such as TikTok have emerged, while legacy platforms like Facebook and YouTube have also introduced new formats for sharing short-form video, live streaming channels and other forms of user-generated content.

As the ecosystem grows, the total addressable market of the creator economy could roughly double in size over the next five years to $480 billion by 2027 from $250 billion today, Sheridan writes. That growth is roughly in line with the team’s estimates for growth in global digital advertising spend over that period. The analysts expect spending on influencer marketing and platform payouts fueled by the monetization of short-form video platforms via advertising to be the primary growth drivers of the creator economy.”

Goldman Sachs