Limitation of Traditional Social Media
The challenges that creators, fans and brands are facing currently
Everyone's life has always been significantly impacted by social media. Every day, many users are still interacting with various social media touchpoints. Because of daily interactions between creators, their followers, and companies on various social media platforms like Facebook, Patreon, Only Fans, and others, the creator economy is still going strong.
However, current social media corporations and platforms are creating a power imbalance among several important roles in the ecosystem, including creators, brands, and fans, which has led to unfairness, hazy income, a lack of mutual benefits, and a lack of clarity regarding the efficacy of marketing.
Passive Creator Economy, which results in a Creators' business model that cannot be sustained
Creators rely on much on traffic and subscription system from the social media platform’s centralized data for their income. They do not have a clarity on how they get paid and somehow, the creators, who make and form the platform, are not fairly paid.. And only 3% of the creators are making money from social media due to the unseen algorithm which proven creators do not have a sustainable business. Their priority is always thinking how to maintain the superficial numbers like numbers of fans and views as this is somewhat, they understand under the algorithm and pay scheme.
A lack of fan belonging since fans are rarely appreciated and simply being a patron is not enough.
Current creator economy are consuming fans in a way of their time, money spent with the creators, such as their time to view the contents, their subscription fees or comments and engagement to prove the creators are powerful. However, they on the other hand, lack of power in the just a transaction-based relationship. As a result, they don’t see themselves as a part of the community and do not have a sense of belonging to the creator and the community.
Brands begin to question KOL strategy in order to improve marketing effectiveness.
Influencer marketing spending was accounted for 16.8B in 2022 which shows brands love this influencer strategy. However, there are too many creators with similar background which brings confusion on KOL effectiveness as they can only rely on and distract by the superficial numbers such as number of fans, followers to see the real power of KOLs. Peer influencing is supposed to be a way to convince the users’ and KOLs’ community but at the end, the lacking of clarity hinders the brands’ marketing effectiveness and control of their own ROIs.