According to Goldman Sachs, the influencer and creator economy market could double over the next five years, driven by a significant increase in digital media consumption and the rise of new technology.

With over 50 million individual creators, the total value of this market segment could rise to $480 billion by 2027, up from a current total of $250 billion.

“New platforms such as TikTok have emerged, while legacy platforms like Facebook and YouTube have also introduced new formats for sharing short-form video, live streaming channels and other forms of user-generated content,” says Eric Sheridan, Senior Equity Research Analyst, Goldman Sachs.

Goldman Sachs expects influencer marketing, payouts from social platforms, and short-form video advertising to boost the growth of the creator economy, with the number of global content creators estimated to rise by 10-20% annually over the next five years.

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Social media creators and influencers earn a living by making endorsement deals with brands, through advertising revenue, and direct donations and subscriptions from followers. The Goldman Sachs report revealed that brand deals are now the primary source of creator revenue at about 70%, followed by ad sharing.

Digital platforms offering multiple ways to monetize creator content will continue attracting influential creators as competition intensifies due to economic uncertainty and rising interest rates, putting significant strains on funding and investment.