Blue Chip Blues

September 05, 2024

Why Aren’t Blue Chip Brands Leaning Into the Creator Economy?

Off the top of my head, the last big brands to lean into creators have been Kai Cenat x Nike, Charli D’Amelio x Ford, and Ryan’s World x Walmart. For a while, we were on a roll with blue chip brands entering the creator space. However, in the last six months, there seems to have been not only a lull, but also a decline in brands actively looking to spend in this space.

Charli D’Amelio’s thumbnail for My First Ford.

There are a lot of reasons why I think brands aren't entering the space as quickly as before, which I won't get into in this newsletter, but I believe there's no better time to get involved.

Why do I think companies should be spending in the creator economy?

Recent data from the past few weeks shows that YouTube is now #1 in TV usage. Not only did YouTube surpass Disney, but a significant portion of its audience is kids, with people 17 and under making up 30% of all YouTube TV viewing. Creators offer an authentic voice; it’s not like paying a celebrity to post once on Instagram. Brands can be integrated into their long-form content, which is incredibly important for reaching this audience.

Source: Nielsen, The Hollywood Reporter

YouTube and the creator ecosystem are only going to get bigger and more powerful. It’s all about finding the right creators who fit the brand voice. Brands looking to appeal to this generation should focus on social platforms, with YouTube being the best option at the moment. This audience isn't spending most of their time watching television; they’re on TikTok, YouTube, Instagram, and other places on the internet.

Source: eMarketer

Get ahead of the new era…

Plenty of brands have been working with big creators for years, and I’ve noticed more legacy brands doing brand integrations with creators. However, I still believe it’s an underutilized space overall. My advice to brands wanting to work with creators is to understand your audience and ensure you have the budget to run multiple tests with creators. Too often, I’ve seen brands work with a creator once and never again—these relationships can evolve into fruitful partnerships between the creator and the brand.

The Big Takeaway:

The era of the internet is far from dead—it’s only gaining momentum. If you really want to reach Gen Z and Millennials, you have to be willing to branch outside of traditional TV and into creator spaces like TikTok, YouTube, and Instagram. I’d expect blue chip brands to start leaning more into the creator economy, there’s never been a better time to start than now.

Episode 1 incoming.

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