The Creator Economy Could Approach Half Trillion Dollars by 2027

We encourage you to read this report by Goldman Sachs, which highlights the significant growth and potential of the "creator economy," where individuals leverage their personal brands and online audiences for income.

Read the report here.

The rapid expansion is attributed to increased digital media consumption and accessible content creation technology. Platforms like TikTok, Facebook, and YouTube are fostering this growth with new formats and features.

Projections suggest the creator economy's total addressable market could double to $480 billion by 2027 from $250 billion today. The key growth drivers are expected to be influencer marketing and advertising-based monetization of short-form videos. The report expects a 10-20% annual growth rate in the number of global creators over the next five years.

The report emphasizes that about 70% of creators' revenue comes from brand deals, and only 4% are considered professionals earning over $100,000 annually. The report identifies six enablers for creating a growth "flywheel effect," emphasizing factors like scale, capital, AI-powered recommendation engines, effective monetization tools, robust data analytics, and integrated e-commerce options.