Goldman Sachs predicts the creator economy is worth $250B and could grow at 14% CAGR from 2022-2027, reaching $480B by 2027. The firm mentioned 3 primary vehicles for monetization, such as (1) ad revenue sharing, like YouTube’s Partner Program, (2) brand-direct deals, like Meta Platforms’ (NASDAQ: META) Creator Marketplace, and (3) audience-directed monetization, such as tipping and gifting features.
Goldman estimates Instagram Reels’ revenue to grow at 63% CAGR from 2022 to 2027, reaching $20.5 billion in 2027. YouTube Shorts is expected to generate $750 million in 2023 and achieve a 98% CAGR from 2023 to 2027, reaching $11.6 billion in 2027.