Brands could risk billions by staying out of the creator economy

The Future. United Talent Agency (UTA) conducted a survey that confirms what Future Party readers know all too well — the creator economy is booming, and brands will miss out on billions if they don’t get in on the action. But modern-day brand partnerships may take more strategy and finesse than they did in the past. Creators and companies will need to be authentically aligned if they plan on cutting through the noise.

Tipping point
A study by UTA found that if brands aren’t investing in creators, they’re leaving money on the table.

• It’s a huge market. 72% of Gen Zers and Millennials are directly paying creators —  a market that’s on track to hit $18 billion. About half spend $25 a month.
• Brands are welcome. 95% of consumers are okay with brands joining in on the creator economy, especially when 63% support multiple creators already.
• Pay is best. Surprisingly, 76% of respondents find paid content “more engaging and enticing,” with a premium put on exclusivity, access, and community.

Joe Kessler, global head of UTA’s IQ division, warns brands that — unlike the stick-to-the-script marketing of old — they’ll need to focus on aligning with creators that reflect the values or vibe of the company.

“It’s important for brands to understand that the authenticity comes from the authenticity of the artist communicating with that consumer, so they would do well to facilitate that communication but not disrupt it too much. That’s the holy grail, and the reason why people will pay $25 a month or more to subscribe to these services.”