Diana Calderon
February 16th, 2021
The internet is flooded.
Waves upon waves of content exist in the corners of the world wide web, available to anyone with the means to access it. Content creators arise from every side of the globe, creating data that feeds into the flooding of the cloud. Thousands of these content creators work for profit, creating information as a full time job. How do content creators balance their income? What are their main expenses in their quest to entertain millions?
Today I will take a deep dive into the budget of digital celebrities.
The Online Income
In a personal blog from online writer Ish Baid, three ways of making digital money as stated, “advertisements, donations, and sales.” These three show that there are not many ways for content creators to create income, but due to the success of the age of information, plenty of creatives have become full time in their craft.
Advertisements can be broken into two categories -- pure ads and sponsorship. Pure ads do not wield much rewards, but have brought a new wave of custom information fit for monetization. For example, free music streaming services such as spotify now force their listeners to experience ads before a half hour of free content. Video platforms such as youtube allow content creators to put two ads in monetized videos over 10 minutes long, creating a new age of video production with longer segments of data.
And brands are leaning into this age of information. Brand sponsorships are up, as consumers are “10x as likely” to buy a product promoted by their favorite digital celebrity. SOme companies, like Squarespace have grown their awareness solely through digital means-- becoming a new type of digital entity. These are companies that everyone knows, they are talked about so frequently by the entertainment that is widely consumed that they become a constant option in the back of the minds of millions.
Some content creators have made their audience into more of a community, offering paid experience in addition to the free videos, songs, podcasts, or other media uploaded to common streaming platforms. And that's where the market for patreon comes in. Patreon, and other similar sites, allow users to become closer to their digital celebrities. One example of this occurrence is my favorite underground pop punk band, a small group from Canada, Hazel. Hazel had a promotion on their first merch drop that if listeners bought any item before February, they would be welcome into the “Cvlt”. The Cvlt is a section of the bands website dedicated to new merch drops and early song releases. It becomes more than a digital community-- it becomes an online club.
Other bands, podcasts, video creators and bloggers have similar platforms, offering additional content for monthly fees.
Finally, there are merchandise sales. While these do have some outgoing expenses in product and design, the return is high for those with personal brands.
Content Creator Expenses
How much of this income is spent to continue creating content?
The biggest set back for content creators is the content itself. These creatives must habitually find new topics of interest, and experience new experiences. This costs money, depending on the exact industry and market per content creator. Some are travel bloggers, other's make baseball news podcasts from their bedrooms.
The next expense for content creators is the expense for making quality data. Better cameras, microphones, drawing tablets, instruments -- these all contribute to the expenses of your favorite digital celebrity.
The last main expense for content creators: marketing. There are thousands of ways to grow content creation, but for this example, I’m focusing on the most well known content creation, youtube videos. The best marketing strategies come from the videos themselves. On a website dedicated to helping content creators, “short, concise titles” and “custom thumbnails” are the most recommended techniques for growing the audience. For some creators, that means outsourcing editing and thumbnails to other creatives. For other's, that means spending time and money to further their videography and graphic design skills.
Works Cited
“23 Smart Ways to Promote Your YouTube Channel.” Social Media Marketing & Management Dashboard, Ryan Holmes, 4 Nov. 2020, blog.hootsuite.com/how-to-promote-your-youtube-channel/.
Baid, Ish. “The Only 3 Ways to Make Money as a Content Creator.” Medium, Better Marketing, 22 Aug. 2019, medium.com/better-marketing/the-only-3-ways-to-make-money-as-a-content-creator-fcf5e0e2398d#:~:text=There%20a%20ton%20of%20ways,to%20some%20niches%20than%20others.
I thought this was a very well-written piece. You touched every side of every topic imaginable when it comes to content creating and the budgeting behind it. I really liked how throughout the blog you broke down sentences and you explained what you were saying. I think that it was a very easy read and it was very good overall. I completely agree with you about how the videos are actually the best way to market them as we see a lot of video titles and thumbnails today that are not even associated with each other. They mainly just put in eye catching things that can make you click on the video.
ReplyDeleteI enjoyed reading your article. I haven't thought much as to how YouTubers and other content creators make money. Your article was very informal and organized. I know that some pretty big YouTubers get demonetized sometimes for little or no reason. I dislike the power big platform companies have. I've seen lots of bias from the company itself and have the power to ban/demonetize someone from their platform which could greatly affect someone's income. Marketing in social media is very powerful, as you said consumers are 10x likely to buy a product used by an influencer. However, I think the ads I see on Instagram for example are too frequent and annoying. In a recent update, Instagram added that shopping feature and cleverly placed it in a spot where you would normally tap. Do you think Instagram will keep this strategy permanently or if consumer rates go down will they remove it?
ReplyDeleteI see a lot of online creators whenever I go an youtube, instagram or tiktok and it is crazy to me how much they do for the money that they get. Some people don't think about the money that is cost the content creators to make their own custom content; whether it be throughs ads, products, sponsorships, etc they are always finding news way to make money. Maybe add your own personal thoughts about why companies are allowing people pay for early stuff. I think that is kind of ridiculous because it's just another way to make money and a way that not everyone can afford to do it. I wouldn't call myself a content creator but I do have a professional instagram account for my side "company" where I can post all of my artwork for others to see and potentially companies. I think that this a great way to get started but who knows where it could end up. The online world is a big and sometimes scary place to be.
ReplyDeleteThis was a very interesting topic to read about! First off, I really like how you started off with your blog, it was a good way to get the readers to listen and made me want to read more. I agree with your saying of "the internet is flooded." A big part of the web now is all about making money off of your content. Remember when people created videos for fun and when there wasn't as many ads on you-tube as there is now? It's kinda sad with the amount of people who can create content and get paid off of sponsorship's and so on. More and more people are going on the the web and trying to just make money instead of going to enjoy their-selves, only making the internet flood more and more.
ReplyDeleteI feel that almost every person including content creators forget what creating content is all about. In order to secure an income and audience out of a platform, you need to instead of putting the thought of entertaining, you need to be yourself. You do not need to be monetized in order to make money. From personal experience, securing things such as sponsorships, endorsements, and personal relationships with others will greatly improve your chances of succeeding in today's online entertainment. As a former Twitch streamer with around 500 active subs (sponsors/subscribers that pay for your content), I was able to buy expensive clothes, shoes, equipment, food, etc... all from playing a video game with some friends and being hyped up on caffiene. If your 'main quest' is entertaining millions I think the television industry would be better for you. The internet thrives off of ADHD-Like attention span. Fame and money comes and goes.
ReplyDeleteI agree that the internet is flooded with the ads that come with our everyday things, like, YouTube, Spotify, Facebook, and other online accounts. The ads can be a big part of a gamer or YouTubers life now a days, but ads aren't the only thing making them that cold hard cash. Youtubers and gamer mainly get their money from other generous donations, or even from merch drops as said above. If you have played games at all or hung around a gamer, or even watched YouTube, you know who "Ninja" is. He has made so much money off of sponsorship deals and merch drops and ad revenue. That all comes down to making around 11 million a year for "Ninja". Which is more then a lot of football players now a days. The new day and age has really evolved but how far can we go with these ads and how much money can we make off of it.
ReplyDeleteYour post was extremely interesting and I thought that you did a really nice job of explaining the information given, nice job! The ways that digital creators can make money is impressive and adaptive and shows how much our world has changed since the internet was created. In my experience, sometimes digital creators will start their careers on the digital path just to make a lot of money and get rich one day, do you think this career path would be a more effective way of making money rather than a more commonly taken career path such as becoming a doctor? In my opinion, I think that people who upload their daily lives to YouTube have possibly glamorized their lives too much to now influence children and inspire them to want the same thing when in reality the YouTuber's real life may be very different than how they perceive it to be and could possibly damage a child's future. I also thought it was extremely interesting how the digital age has influenced music creators and artists. In the past, bands (such as Queen) would have to get their start by playing at small concerts like bars, but now artists (like Billie Eilish) can upload one song to a streaming website and it's heard by millions and automatically creates a fan base. In terms of making money, do you think it's a good thing that artists can create a larger community faster with streaming services such as Spotify or Sound Cloud?
ReplyDeleteBefore reading this article, I have experienced a realm of pure ads and never really recognized it or considered its overall impact. As you mentioned, brand sponsorships are extremely prevalent with the popularity of social media. The statistic that consumers are "10x as likely" to buy a product promoted by their favorite digital celebrity blew my mind. When I scroll through my Instagram and Facebook feed I constantly see a vast variety of celebrities endorsing different products. While I myself don't particularly go out of my way to purchase these products, I am sure they reach such a large crowd that they are bound to make a heavy profit. With that being said, I wonder if there is a statistic that shows the ratio of the viewers to actual buyers of the product endorsement? Overall, this blog was extremely insightful to how influencers can really make a profit off of social media.
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ReplyDeleteThis is super interesting to hear about, as we all experience ads on a daily basis and therefore are all consumers to a really unthought of market. When most people think of viable careers for their lives, they do not think of a digital celebrity or influencer online. Now, I do have to give influencers credit, as budgeting can be seen to be a strenuous task, especially with an almost unpredictable income. This may be challenging with the need for a flexible schedule, having to constantly manage your content, and having to stand out in a strict market. From this, it was still startling to read that people are 10x more likely to buy something if it is promoted from an almost stranger. As I read I did wonder if there are any statistics out there that will highlight what proportion of influencers/digital celebrities are successful in their work and will get paid and what is average amongst those few and what is the extreme?
ReplyDeleteMy close friend actually works in the YouTube field, so it was interesting to hear the technical side of producing work and making money off of it. As you mentioned, I've heard it can be somewhat difficult to constantly think of new ideas and to stay up on topical trends that would interest a faction of the public. He's constantly checking analytics, promoting himself on premiers and other platforms (like Instagram, Facebook, Snapchat, and Twitter), and always finding ways to produce quality "data" by learning how to utilize editing software and advanced technology. Something I also find important to consider within the promotional aspect of a creator's posts is that it's of impetus to create content that balances the revenue you've earned. Additionally, I find that social media influencers that have more connections with other well known artists tend to become discovered more--and therefore boosts both aspects of promotional game and revenue. For example, my friend has some content with underground artists and online interviews with more popular individuals, which has gained him a higher following from those who stand by those influential people. Within the pandemic, I think we can all agree that the general populous is spending more time on their phones now more than ever, so creating online content is a great gateway into appealing the public eye--and can even be a great source of income if handled correctly.
ReplyDeleteI agree entirely that now is one of the best times to begin or grow as a content creator. I think that in the age of information that we live in there is plenty of opportunities to develop unique skills and brand yourself online. Thank you for sharing your input on your friend, especially the information on growing connections. I do think that if you want to "make it" online, you must be an active member of the community for your niche. Thanks for sharing your insight into growing from a beginner content creator to someone who can make a profit off of their passion! (diana)
DeleteBefore reading this article my only thoughts of making money online was donations and watching David Dobrik give his friends Teslas to promote a service. Seeing how many ways and how in just one day the amount of ads I see providing a monthly subscription or a content creator opening a Patreon makes you think there making content for free and not making money for the amount of money they put in.
ReplyDeleteIts interesting learning how content creators on youtube and other sites like it actually make their money. It seems strange that someone could upload content to those sites and make money off of the advertisements that are on it.
ReplyDeleteWhen I read this article I was not expecting there to be so many ways to promote goods and services through social media. My thinking was definitely challenged but in a very good way. I think it's interesting that YouTubers who profit off of ads still struggle making a name for themselves and marketing. I also really appreciated you using a real life example that is more personal to you. I think it gave your blog some voice rather than just be totally informational and I was able to enjoy reading this more.
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ReplyDeleteThis was really interesting to read and learn about because I’ve watched some influencers talk about their income in their videos but not a lot of information is exposed for the public. I knew that they depended on ads and sponsorships but I didn’t know anything else about how they make their money. A lot of them still struggle to make a name for themselves in this new age of Youtube where it’s become an outlet for their income. I think it all goes into how well their marketing skills are like what you mentioned about what their thumbnail looks or their video title. For example, Youtubers like David Dobrik have made a name for themselves by putting outrageous thumbnails and titles to get views. He also engages a lot in ads and sponsorships like using the money he received and buying his friends cars as a “bit” for his videos. Overall, this article helped me learn more about how people on the internet make their money and how difficult it can be to make it their full-time job. Nice work!
Before I read this article, I didn't really think of how many people truly make their full income on social media and how they make that money. Now that I read this whenever I see my favorite youtuber doing a ad I will know that they were bringing in good money from that. It is very interesting that now people can just make their full income online and not have to really go anywhere to make the content which makes it seem not very stressful to be a youtuber and you can also make good money off of it too. Overall, I thought that your blog gave me good insight into the finances of youtubers and social media celebrities and it gave me a good understanding about how online celebrities make their money.
ReplyDeleteScreenshot of your comment:before reading this article I didn't know much about this. I think the information that stood out to me the most is probably the money part of this. Let's start when you talked about youtube. You where saying how much money they might have to spend on the ads or even the thumbnails or whatever they are doing in that video. Now I didn't really think of that until it was said here. I didn't really think about the money part more of any apps. Just like when you were talking about spotify too that 30 minute add free ya well if you skip 4 songs that's already minutes lost from that 30 minute add free. Thank you for sharing this was well done and got some good information I didnt know how much different promotions that there where.
ReplyDeleteI'd like to touch on the subject of expenses. In content creation there are many expenses, both in money and time, but this isn't just exclusive to content creation; most hobbies and careers that are worthwhile require those things. I don't believe money should be a deterrent for something you are passionate about. There are costs to everything we do, and we shouldn't let them hold us back if we truly love doing something. There are usually, if not always, ways to make it work.
ReplyDeleteI thought that this article was very interesting to read. I don't really know much about the technical side of content creators, but I thought this article was very informative and detailed. I think that it interesting how creators have so many different marketing options, and still struggle with getting there content actually out and trending. I does make sense though. Also, this job just seems like it would be hard. I couldn't imagine actually doing this for your sole income.
ReplyDeleteWhile reading the section about brand sponsorships, I thought about how many different brands I know, solely through online platforms. For example, Honey, Skillshare, Raid: Shadow Legends, Ridge Wallets, Brilliant, NordVPN, etc… As an avid Youtube watcher myself, I see these things very often, and have also been witness to discussions about ad policy. I thought it was interesting when you mentioned that there are only 3 main ways to make money as a content creator. It does make sense though. However, I wonder how much money these people are making. (It evidently must be enough to support them full time) Overall, I enjoyed this blog post, as it made me think more about how our internet culture is so infused with advertisements.
ReplyDeleteI feel that some content creators forget what content creation is, and try to just force ads on to their views. Not every creator is doing this, but it seems to be happening a lot more as people start to grow a following on social media. I have also noticed that platforms like YouTube and Spotify have ads but go, hey you don’t like the ads well you can pay us a little extra and you don’t have to deal with ads anymore.
ReplyDeleteIt was very interesting reading about how these digital celebrities budget. I always see these huge celebrities that have all this money and wonder where it all comes from. I still find it crazy how these celebrities are able to make all this money through the internet. It really shows how powerful the internet is. Though reading your blog, I realize how many ads and sponsorships we are exposed to on a daily basis. It seems almost every time you click on a video you receive an ad. I also realized there is more to these celebrities jobs than what is seen on the screen. There is a lot that goes on behind the scenes of celebrities to be successful. I loved reading about this topic and thought it fit in well with today's day and age!(Ally Longden)
ReplyDeleteI Enjoyed your blog with how you defined it perfectly for someone new or experienced in the topic for it and was very easy to read. And it surprises me how the internet makes people so much more money from how you were talking about celebrities how they make all this money from ads through the internet
ReplyDeleteI enjoyed your blog it was done well and included reliable sources.
ReplyDeleteI really enjoyed your writing piece, as this topic has been something that has interested me for a while. I was pretty informed about how content creators make money, through their various forms and methods, and also what some major expenses might be. But I’m glad you covered how the hardest part is actually creating the content itself. I think the thing many people take for granted is how hard it is to consistently push out very enjoyable content across the internet, especially with how much content there is out there now. This just makes me wonder how the content on the internet might shift in the near future, as some people such as popular YouTuber Mr. Beast has shifted it so that many people make YouTube content by spending unusually high amounts of money, as it will draw in more viewers, and they will actually end up making even more money. Overall, your piece was very insightful and thought provoking, and I really enjoyed it!
ReplyDeleteI was really interested in this topic because I have a couple friends that are looking into content creation as their main source of income. It was nice to know that if done right there is a chance that it can be sustainable. I like how you also touched on the problems content creators run into. It really put into perspective the whole lifestyle.
ReplyDeleteIt's interesting to try and truly understand how content creators make all there money. Form just a normal outsiders perspective it would seem like a supper easy and rewarding job, but in actuality it seems extremely difficult and risky. You have to fully commit your self to your content and try and sell your self to your followers. Its also a not very reliable job, because one slip up could result in huge consequences.
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