Hi All, Multiple studies underscore the significant value the creator economy contributes to brands.
It's generally understood that for every dollar invested, creator content can yield an "earned media value" (EMV) of approximately $5 to $6.50. This estimation is corroborated by findings from platforms such as CreatorIQ, Grin, and Influencer Marketing Hub, which all present similar variations of this metric.
The “creator” trend however extends well beyond the use of pay-for-play personalities by brands; increasingly, creators are venturing into brand creation themselves, producing products that rival some of the largest corporate entities. A prime example is Selena Gomez's Rare Beauty, which, in under five years, has been valued at an estimated $2 billion. Last year alone, it generated over $400 million in sales, competing with the top beauty brands globally. The recent news of a potential sale positions Gomez as a potential billionaire resulting from A+ execution within the creator economy.
This shift illustrates a significant opportunity for creators. By leveraging their fanbase and engaging directly with consumers via social media, creators undoubtedly now have the power to establish their own brands in today's market with unprecedented upside. Selena Gomez's success is among numerous stories that is likely to inspire other creators to explore brand creation, either independently or in partnership with established brands. This shift could redefine the influencer landscape, encouraging creators to view their partnerships as long-term investments rather than short-term earnings.
Here is what else that has been capturing my attention this past month:
I Didn’t Know That…
- 72% of women in the online population play video games, with women making up 45% of the gaming population and half of them also spending money on games. Among gamers, 36% of women consider themselves gamers, and diversity in games is important to 62% of female players. Notably, 44% of women gamers exclusively play on mobile platforms, and nearly half identify as casual gamers, with more than a third of women on PC or console considering themselves core gamers.
I Liked The Creativity Of…
- IKEA - The brand recently launched its creative content series titled "Don't Worry, You Can Afford It," focusing on pets and the delightful chaos they often cause. In this series of advertisements, IKEA's diverse products, such as planters, mugs, cushions, and vases, are humorously showcased being toppled by lovable cats and dogs. These ads provide a reassuring message to pet owners: the affordability of IKEA's items makes replacing them after a pet mishap stress-free. This campaign cleverly captures the market of pet owners, especially timely given the significant rise in pet ownership across the globe. Specifically, in the U.S., pet ownership has surged from 56% of households in 1988 to 66% in 2024, which translates to 86.9 million pet-owning homes. By linking the sometimes chaotic, pet-induced accidents at home with IKEA's budget-friendly products, all under a veneer of cuteness, the brand smartly aligns itself with the needs and realities of modern pet owners.
I Was Inspired By…
I’m Excited For….
- AIBOs, which stand for AI Buyouts. More coming on this, but the idea of using AI to underpin mergers and acquisitions activity in the agency sector has the entire team buzzing. Generally speaking, AI technology enables marketing practitioners to be more efficacious with time and more precise with campaign work. As the “AI” industry continues to take shape, M&A activity will most certainly increase.
Thoughts or ideas you want to discuss?
Let's connect: Jeremybarnett@radintel.ai. Thanks for reading, and until next time!