The Information analyzed key data points that define the creator economy in 2023…

Creator Economy Funding (US)Influencer Marketing Spending
2021$6 Billion $3.8 Billion
2022$2.75 Billion$4.3 Billion
2023$750 Million$5.1 Billion

Here are the highlights:

While creators themself continue to thrive, creators startup funding is on the decline:
Venture funding for U.S. creator businesses reached around $800 million by the end of Q3, less than one-third of the previous year’s total.

This decline is steeper than the overall drop in venture funding across all tech sectors, which saw a 38% decrease in the first three quarters of the year.

However, influencer marketing spending remains strong, with businesses projected to invest over $5.1 billion in 2023.

AI Stills Climbs
Despite the slowdown in overall creator startup funding, AI-focused companies are a bright spot, with 27 such companies in The Information’s Creator Economy Database raising over $800 million.

Notable AI companies, like Runway and Synthesia, secured significant funding, but the sector faces challenges with overlapping products and potential consolidation.

Diversification Efforts by Social Media Platforms
Large social media platforms are exploring diverse revenue streams beyond digital advertising.

Meta Platforms and TikTok are testing paid, ad-free versions and subscription offerings in Europe. Additionally, platforms are charging for verification services.
This shift suggests a broader trend as both small startups and major platforms seek alternative revenue models.

Additional Nuggets
This year highlights the mixed track record of Instagram head Adam Mosseri in prioritizing safety for young users. While emphasizing safety publicly, Mosseri’s support for certain protective measures has been inconsistent, raising concerns about the platform’s commitment to user well-being.

All in all, The Information’s comprehensive analysis provides insights into the contrasting trends within the creator economy, emphasizing the challenges and opportunities faced by startups, AI-focused ventures, and established social media platforms in 2023. 

Lastly, it’s worth noting that social media platforms turned their attention to ad-free tier subscriptions in 2023 (despite the grumbling of its users)

PlatformLaunch DateMonthly PriceAvailable Territories
MetaPlanned9.99 eurosEurope
TikTokTesting$4.999Everywhere but US
X (formerly Twitter)October 2023$16Unknown 
YouTubeNovember 2014$13.99Worldwide
Snapchat Rolling out slowly Unknown as of yetWorldwide

Categorized in: