Producer Economy: How Its Transforming Influencer Marketing?

Historically, marketers have spent vast amounts of money on influencer marketing, but the influencer-marketing landscape has taken a different shape. This industry is rapidly moving toward a “producer economy,” where brands build their own media networks and content creators build their own media brands. 

While traditional marketing and PR methods still have their place, the shift to a more “producer” model is helping brands and influencers alike thrive.

The influencer economy is an ever-evolving ecosystem. In addition to paid advertising, creators can earn money through memberships, subscriptions, gifting, and partnership with brands. Twitter recently introduced a system for creators to receive tips through Bitcoin or NFT. YouTube and Twitch allow users to tip other gamers, while TikTok will enable influencers to earn from organic product linking, sponsorships, and advertising.

By harnessing the power of an influencer, a brand can connect with customers and influencers in a way that no other type of marketing strategy can. With the influencer economy in place, an individual or small business can develop new ideas, develop strategies and business plans, and explore new market frontiers. This new economy allows both the brand and the creator to earn money, pursue a career, or build a business.

Impact Of Producer Economy On Influencer Marketing

The producer economy is transforming the influencer marketing industry. With the increasing popularity of niche content, brands are increasingly relying on influencers to engage their consumers. With greater control over the content they produce, brands are now better positioned to negotiate relationships and set their own terms. This new paradigm gives brands more freedom to choose their influencers and their content, and it can significantly improve the overall effectiveness of their influencer marketing campaigns.

As the producer economy takes over the influencer space, marketers can leverage the growing role of customer advocates to create powerful marketing campaigns. These influencers typically have smaller, highly engaged audiences that drive sales and build intense brand loyalty. 

According to Forbes, the influencer marketing industry is expected to grow 550% by 2020, reaching a total value of $13.8 billion by 2021. Brand-creator partnerships drive the growth in the creator economy. For example, Warby Parker, the first glasses company to market directly to consumers, has developed strong creator-retailer relationships.

How Is Producer Economy Transforming Influencer Marketing?

By foregoing popular consumer sites, creators and brands are taking a chance on the Wild West of independent platforms, risking audiences opting for content already available on their preferred social apps.

The following are a few ways the producer economy is bringing transformation in influencer marketing:

  • A Greater Sense Of Ownership

Influencer marketing has evolved due to the significant increase in content creators over the last few years. Amid this industry boom, content creators often struggle to determine their worth when negotiating brand partnerships, especially since social media platforms can take up to 45 percent of creators’ ad revenue, according to a recent report. 

Creators and brands who have their channels on social media platforms or video-sharing sites are at the mercy of recommendation algorithms that do not guarantee organic reach. Their content may become lost in the chaos, lowering the Return On Investment (ROI).

  •  Improving Creator Collaborations

As the creator economy shifts to a producer economy in which influencers and brands own and manage their media channels, their relationships are likely to shift. Marketers must consider their own needs when negotiating partnerships and the needs of the content creator, influencer, or other potential brand partners.

Brands that build in-house content production teams have more flexibility in negotiating influencer relationships, for example. Brands and influencers will need metrics to evaluate outcomes and inform future efforts, whether they collaborate for a single campaign or a longer-term marketing partnership.

  •  Better Authenticity & Safety Of The Brand

User-generated content (UGC) on video-sharing and social media apps has led to a greater public acceptance of online personalities who appear more genuine and relatable.

According to the study, time spent watching UGC is on the verge of overtaking time spent watching traditional television among teenagers. However, advertisers whose marketing messages appear next to or embedded within it are concerned about brand safety as a result of its growing popularity.

As marketers step up and become producers themselves, the producer economy creates new opportunities for marketers. Marketers now have more control over their content because they are no longer bound by the constraints of other publishers or even social media sites.


The producer economy is a delicate balance between producing content that conveys the desired message while also fitting in with the current trend of less-polished content. It will also make their name more valuable in the digital age. Brands and creators who get in early and learn from their mistakes may help steer the influencer marketing industry as a whole.