Media platforms

Why social media platforms are taking over the growing designer economy

Social media platforms are betting big on creators, rolling out programs to streamline transactions between creators and advertisers. It’s a move that could circulate creators, advertisers, and ad dollars across the platform’s ecosystem.

Platforms like Clubhouse and Instagram have announced new creator programs with funding, scheduling, and matchmaking features for creators and advertisers. The latter is similar to what an influencer marketing agency does.

Marketers say the initiatives could streamline the influencer, relationship with advertisers, and expand the platform’s advertising offerings. Jordan Fox, who runs full-service agency Laundry Service, particularly enjoys TikTok’s work with designers.

“[TikTok] in a great position to sell influencer partnerships because they already do business directly with advertisers and have exclusive access to their own pool, ”he said. “I have the impression that they have integrated influencer selection services into their overall offering in a very skillful and efficient manner.”

Last week, Instagram kicked off its first Creators Week in an effort to capitalize on the growing designer economy. The three-day streaming event included panels, competitions and sessions with platform leaders. Instagram is the latest platform that tries to woo and woo creators.

And earlier this month, the Clubhouse live audio social app hosted its first class Creator First, offering equipment, a stipend of $ 5,000 per month, per show, and advice from Clubhouse management. TikTok also threw its hat in the ring last year after it introduced its $ 200 million TikTok Creator Fund and even a three-month designer incubator program for black creatives. Snapchat and YouTube have similar programs in place.

According to marketers, these are just the latest iterations in the platform’s push to create creator-friendly ecosystems, keeping pace with brands making influencer marketing a core strategy.

“There are more potential monetization opportunities than ever for creators, and that’s because they’ve proven over the past few years to be the engine of business for brands and platforms,” said Victoria Bachan, Managing Director of influencer marketing agency Whalar’s Creator Management. division, Whalar Talent.

The programs are a natural extension of the trading that was already happening on the platforms, as many had links to Venmo, Cash App and others in their bio, according to Stephanie Simon, Community, Creators & Partnerships Manager at Clubhouse.

“What we’re doing is laying the groundwork for a relationship and what the market will look like between creators, brands and talents,” she said. “It’s not just about winning lump sum cash. It’s about supporting or equalizing what a creative career can mean.

According to Simon, what’s interesting about Clubhouse’s offering is that the platform offers a monthly stipend and facilitates trading without taking a portion of the creator’s income. It differs from TikTok’s Creator Fund, in which funds are distributed based on video performance and other factors, by TikTok blog. According to tech media The Information, Instagram has yet to explore an official creator fund in addition to Creators’ Week.

However, not all creators turn to these programs.

Recently, full-time influencer Justina Sharp retired from the TikTok Creators Fund. With the drive to create designer ecosystems, she worries that platforms are positioning themselves to reduce creators’ incomes. For a post with over 5 million views, Sharpe said she only made $ 36 through the TikTok Creators Fund and wondered how the payout was determined. It’s unclear how TikTok determines rates outside of video views, which have been criticized in addition to its mysterious algorithm. (TikTok did not respond to Digiday’s request for comment.)

With over 10 years of influencer experience, Sharp said she prefers to continue doing deals with brands herself, setting her own rate.

“It’s just that you’re trying to distance yourself between me and the money I’m making with this platform,” she said.

Cypress Villaflores, associate director of paid social media at Mediahub, noted similar concerns about TikTok’s program, but said creator funds, like Instagram and Clubhouse’s offerings, generally provide a steady stream of income for creators and user engagement for the platform. Apparently it’s a win-win.

“Technically, it’s like a symbiotic relationship,” Villaflores said. “[Creators] get people to the platform. It increases my monthly users, increases my daily users, and [advertisers] give you money to do this.

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