Creators' incomes are still on the rise, but the way they earn money is changing.
Creator revenue from social media is expected to reach $13.7 billion in 2024, up 16.5% year-over-year, according to new data from market research firm eMarketer, a sister company of Business Insider.
meanwhile brand partnership Research analyst Jasmine Engberg said affiliate marketing has “revitalized” this year thanks to platforms like TikTok and YouTube, although it remains the main source of income for creators.
“Most creators realize that refusing an affiliate deal is like leaving money on the table. For smaller creators, or those who treat content creation as a side hustle, monetization can be difficult. It’s a great way to get your foot in the door,” Enberg told BI. .
US consumers also Expenses are higher than in recent years Despite high inflation and rising interest rates, it is contributing to the increase in income for creators. For example, eMarketer data shows that more users on TikTok are purchasing subscriptions and products from creators compared to the previous year.
Creators typically have several sources of income, from brand partnerships to affiliate marketing to launching courses. These alternative sources of income are helping superstars like Kirby Rame as well as smaller audiences make a living.
“While overnight TikTok sensations are becoming less common these days, the influencer market is saturated not only with creators but also with average users looking to monetize their content,” Enberg said. said.
Revenue generated by US-based creators on social media e-marketer
Here are three takeaways from eMarketer data:
More creators are jumping on the affiliate marketing train
Influencers make money by sharing trackable links or using specific codes for someone to make a purchase. This is known as affiliate marketing. Creators receive a commission from their sales.
According to research from EMarketer, creators will earn more than $1 billion from this revenue source in 2024, up 22.6% year-over-year.
Many influencers use e-commerce platforms like LTK and Amazon to host their affiliate links. But Enberg said the platform's introduction of TikTok Shop in the U.S. last year has accelerated the growth of affiliate marketing. The company is I was leaning heavily towards working with influencers. To grow shopping products.
Affiliate marketing is also popular on Instagram and YouTube, the latter recently Unique affiliate marketing program. Instagram creator Janesha Moore also told her BI that her affiliate marketing is More comprehensive revenue streams For creators of color who are often ignored and underrepresented in brand partnerships.
“This is a very powerful tool because everyone benefits at the same rate, so it's all about what strategies you use to make your money work for you.” Moore said.
YouTube tops the list for in-platform income
Influencer marketing is growing rapidly on YouTube. Spending on shorts will increase by 700% in 2023. The same appears to be true for creator revenue, with the platform proving to be the single largest source of direct platform payments to creators, according to eMarketer. This year YouTube payouts are expected to increase by 10% to $3.2 billion.
of Increased demand for long-form content This is another reason why YouTube is expected to become the most financially lucrative platform for creators in 2024. Other platforms such as TikTok also Compensate creators when they post long-form content.
However, Enberg admits that direct monetization efforts overall are still not as profitable as other revenue sources.
“Paying on the platform has been a headache for many creators, especially for short-form videos, which typically have ads between them and are difficult to attribute,” she said. “YouTube Shorts needs to prove that it can generate real income for more creators over the long term.”
Growth of various revenue streams e-marketer
Live streaming may be worth your time
Enberg said that while tipping, merchandise and paid subscriptions are still only “a small part of social media creators' revenue,” they are quickly becoming popular among users.
Tipping culture is on the rise, especially on TikTok. The platform has introduced a feature where followers can click on creators' profiles or creators can send small amounts of money during livestreams.
