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Goldman Sachs recently predicted that the creator economy could reach half a trillion dollars by 2027. The creator economy is booming. While newer, smaller and more resource-intensive companies more naturally turn to influencers as a marketing tool, larger, more sophisticated brands often struggle to find a way to leverage creators to build brands and businesses while minimizing risk. To better understand how legacy companies can maximize their potential while limiting the downside, I reached out to Visa CMO Frank Cooper III.
Since there are a lot of terms floating around, I asked Cooper to provide a basic understanding of what the creator economy is – as he sees it. “In the broadest sense,” Cooper suggested, “the creator economy consists of any person who uses their creative talents to make money.” However, I believe there is a more specific definition at this stage of development. Now, the creator economy refers to the entire ecosystem that has emerged from people creating online content and engaging audiences with that content for communication, community, and commerce. Creators cover a wide spectrum – from artists to video gamers to influencers to writers and more. However, they differ from “creators” in general in that they communicate, build community, and drive online commerce. If you are a musician who only performs live and has a website with your performances, you are not part of the “creator economy.” You may be a creator, but you don't communicate, build community, or drive commerce through digital platforms like social media or video games. Again, many more people belong to what Richard Florida has called the “creative class,” but at this point only a subgroup is included in the creative economy.”
Cooper explains that the creator economy has changed and will change marketing in several ways. “First, content creators not only create content, but are also, in effect, the distribution channel. Successful content creators and influencers can produce content that audiences want to see, and they have built a lasting relationship with that audience. Therefore, marketers accustomed to “controlling the message” need to give creators more leeway to gain authentic access to those creators’ audiences.
Second, marketers need to build new strengths in working with YouTubers. Generally, creators are not creative agencies. To build effective partnerships with creators, marketers must translate their goals into terms that fit the creator, not the other way around. Equally important, marketers improve their ability to identify creators whose values and personality align with their brand, rather than solely focusing on creators with the most followers.
With the relatively recent changes in social media platforms' algorithms, creators are now essentially in the business of producing “hits”… or groundbreaking content that people demand. You can't buy a hit. The main way you can maximize the potential for success is by producing great content that exceeds the needs and expectations of a specific audience. In short, in the world of the creator economy, brand marketers should see themselves less as “brand managers” and more as “brand value creators” who promote the brand or products together with others.”
Despite the major business-related problem Bud Light had with its influencer program last year, Cooper says Visa has now established partnerships with hundreds of creators. When working with the creators, Cooper emphasized that it is of utmost importance to “ensure that the creators can remain true to themselves while promoting the values of the Visa brand and the products that they sincerely support.”
Equally important, Cooper suggests that more legacy brands should see themselves as “creator brands.” “Instead of disrupting the user experience, a creator brand develops content that enhances the creator experience. Like creators in general, creator brands can create content that people want to see and use that content to drive community and commerce.”
More broadly, Cooper suggests that legacy brands like Visa can evolve to harness the potential of creatives. For example, Cooper points out that “many traditional brand marketers need to evolve their mindset and behaviors to unlock creators' potential.” In terms of mindset, the primary shift requires a shift from “command-and-control” thinking to a highly decentralized approach that focuses on “serving and nurturing” people. While not quite a leaderless revolution, it does require a greater willingness to enable a greater diversity of approaches and greater inclusivity in brand voices.
When it comes to behavior, traditional brand marketers must adapt to the speed of online behavioral culture. Likewise, they must recognize opportunities or respond to consumers' actions at a pace that may be uncomfortable. However, marketers can no longer control the speed at which content is consumed and shared – and therefore must adapt to this relatively new reality. Additionally, since the expiration date of online content has a shorter lifespan than traditional marketing content, marketers should significantly increase the volume of content they produce – whether on their own or in collaboration with creators.
And perhaps most importantly, traditional brand marketers can turn social media into social commerce. At Visa, we've seen the rise of value sharing from creatives across social media, video games, travel and more. Additionally, we have observed the changing needs and expectations of sellers and buyers. Our mission at Visa is to expand these trade and value exchange opportunities by removing transaction friction and building capacity for buyers and sellers. The beauty of the Creator Economy is that anyone can be a part of it. So the opportunities for social commerce extend to every brand.”
Finally, I asked Cooper to share a case study of how Visa has effectively helped YouTubers. He noted that Visa's “support for the creator economy has taken shape in a variety of ways since 2021, including the following campaigns that we have tested and learned from over the past few months: Visa NFT Creator Program, the Visa Ready Creator Commerce Program and the GetP@id program.
Visa P@id obtained
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In 2023, we have focused our marketing efforts more on collaborating with creators and currently have more than 500 creators collaborating with us on our digital platforms. We also created a dedicated category for creators within our content and product teams, which resulted in a 100% increase in our marketing efforts.
However, GetP@id is a great example of how we successfully highlight creators' content in a meaningful way. Our goal was to give more developers the tools and systems they need to grow from hobbies into real businesses. GetP@id is a social video program that connects aspiring YouTubers looking to turn their passions into a career with established fashion, music and food creators.
Those participating in the creator economy face similar challenges to small and medium-sized businesses – including economic uncertainty, lack of timely access to capital and timely payment. GetP@id helps younger creators gain traction and get paid for their content. Similar to a mentor/mentee partnership, we have worked with established creatives to share their knowledge of what it takes to build a successful career as a creative and provide first-hand coaching to new creatives in the same industry. I’m proud of this program and look forward to expanding the ways Visa can support aspiring creatives in the future.”
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