Creators and the 2023 recession.

As 2022 closed, the creator economy was predicted to exceed $21.1 billion in 2023. This is a 22% rise in comparison to 2022 and a colossal 12x increase from 5 years previous. However, as interest rates spike to curb inflation and the FED is bailing out banks in the US on a bi-weekly basis, it's an important time to take stock and question if the creator economy is going to take a hit and if so when.

I've shared some links below for creators to learn more about the topic and ease some concerns that may have been brewing over the past few weeks;

Spend in advertising is still pretty resilient
Despite the rough reports circulating around Wall Street, the Winterberry Group reports that advertising spend will increase by 6% in 2023.

Key Takeaways;

1. Advertisers are expected to spend $509 billion in 2023.

2. Influencer spend is expected to increase in 2023 according to the Winterberry Group.

3. The overarching theme is that budgets are continuing to shift from offline channels to digital marketing mediums.

Is the creator economy really recession proof?
Christianna Silva and her team at Mashable predict a recession in 2023 but it may not be all doom and gloom for content creators.Key Takeaways;

1. The creator economy is not immune to a recession, and creators may experience a decline in revenue if there is a decrease in demand for their content or merchandise.

2. To prepare for a potential recession, creators should consider diversifying their income streams by creating merchandise, offering online courses or coaching services, or branching out into new platforms.

3. Building a strong community of followers and fans is crucial for creators, as they can rely on their support during tough times and leverage their feedback to stay connected with their audience.

Preparing for economic uncertainty
Reed Duchscher of Night Media wrote an excellent piece in 2022 on navigating an impending recession as a creator, check out the full post here. In summary;

1. Plan for a 30% dip on AdSense and brand partnerships over the next 12-24 months.

2. Review your cash flow, create a budget, and start to explore other monetisation opportunities.

3. Don't be tone deaf in your content, especially while many others may be facing economic suffering.

TL;DR From our perspective, Fuze is not seeing a slow down in brands willingness to spend on Youtube, some of our clients have had their most successful quarterly earnings to date!In saying that, it is prudent to prepare in advance of a potential slow down. Applying frugal budgeting principles, diversifying revenue streams and applying a cash-first mindset when it comes to strategy are just some ways of mitigating risk. I'm not an economist and things can change pretty quickly but I believe by acting in a conservative manner, Youtube creators can successfully navigate their way through a potential slow down in growth in 2023.

Youtube Growth Hacks Of The Week

Youtube Studio hacks to optimise your content and increase growth

Find here four powerful youtube studio hacks put together by Paddy Galloway that will help your content grow exponentially.

Shorts Creators dominate Youtube's 2022 breakout creators list Thinking about putting together a strategy for Youtube Shorts over the coming months? Here's some validation on the topic.

90% of the breakout creators on the above list can attribute a high portion of their success to creating Youtube Short content.

Watch: The Full Story Of Mr.Beast
Here's my favourite interview with Mr.Beast on Colin & Samir's awesome Youtube channel. It may not be a growth hack but the inspiration alone from this interview with Mr.Beast will act as a motivator to grow in 2023. Watch it and learn from the best creator out there.

That's all for our first issue, feedback is always welcome!!

If you would like to chat further, I'm putting aside time for one consulting call per week for creators / marketeers that are subscribed to this newsletter.

We'll speak for 30 minutes on a problem that you want to discuss and I'll follow up with valuable resources and an action plan to address the issue.

I specialise in the area of brand partnerships, creator monetisation & creator marketing strategy.

Have a brilliant day, Conor!