April 18, 2024
South America Creator Economy Market

South America Creator Economy Is Expected To Be Flourished By Growing Adoption Of Social Media

The creator economy refers to independent professionals who monetize their skills, knowledge, and services through multiple online platforms. Creators generate income from selling products, subscriptions, and advertisements. Common creators include artists, musicians, writers, online influencers, journalists, educators, designers, photographers and other independent professionals. The creator economy supports the livelihood of millions of independent workers worldwide and is transforming how work is defined and consumed. In South America, countries like Brazil, Argentina and Colombia are experiencing a boom in the creator economy with the growing popularity of social media platforms and digital content creation.

The South America Creator Economy Market is estimated to be valued at US$ 2.68 Bn in 2024 and is expected to exhibit a CAGR of 27% over the forecast period 2023 to 2030, as highlighted in a new report published by CoherentMI.

Market Dynamics:

One of the key driver for the growth of South America creator economy is the growing adoption of social media platform. Social media has enabled easy discovery, distribution and monetization of digital content. Platforms like Instagram, YouTube, TikTok and Facebook have made it simpler for anyone to build an audience and generate income from their talents and skills. Another driver is the increasing internet and smartphone penetration in South America which has provided the necessary infrastructure for the expansion of digital creator businesses across the region. This has encouraged more individuals to explore content creation and online entrepreneurship.

Segment Analysis:

The South America creator economy market is dominated by the music streaming segment, which holds a share of around 35% in 2024. Music streaming platforms allow creators to monetize their work and build audiences. The ease of uploading content, engaging features for both creators and audiences, and paid subscription options have made music streaming the preferred method for professional and aspiring musicians looking to earn in South America. The video streaming segment is expected to grow at the fastest pace during the forecast period. With increasing time spent on video platforms by South Americans and rising number of influencers, the monetization opportunities through video content, including live streaming and video podcasts, is attracting several new creators.

South America Creator Economy Market Segmentation:

  • By Content Type
    • Videos
    • Live Streaming
    • Music
    • Podcasts
    • Blogs/Articles
    • Ebooks
    • Others
  • By Revenue Model:
    • Advertising
    • Subscriptions
    • Donations/Tips
    • Sponsorships
    • Affiliate Marketing
    • Merchandise Sales
    • Other
  • By Creator Category
    • Influencers
    • Artists
    • Musicians
    • Writers
    • Comedians
    • Game Streamers
    • Others

PEST Analysis:

Political: Media and creator regulations across South American countries support growth of the economy. However, some nations like Brazil impose stringent rules around content monetization.

Economic: Rising internet penetration and youth population and growing middle class are driving content consumption in South America. However, high inflation impacts creator earnings potential.

Social: Social media usage is widespread in South America providing valuable engagement and marketing channels for creators. However, limited payment options presents monetization challenges for some creators.

Technological: Advances like 5G, cloud infrastructure and AI are enabling development of new immersive creator tools and monetization models. However, inconsistent internet connectivity in rural regions remains an issue.

Key Takeaways:

The South America Creator Economy Market Size is estimated to be valued at US$ 2.68 Bn in 2024 and is expected to exhibit a CAGR of 27% over the forecast period 2023 to 2030.

The region’s large youth population is keen on consuming and producing online content driving higher participation rates. The video streaming segment is projected to emerge as the fastest growing segment owing to rising popularity of visual content and social video platforms that enable monetization through features like live streaming and video podcasts.

Key players like YouTube and Instagram have sizable creator bases in South America and continue investing in innovative tools to support emerging talents across music, arts, comedy and podcast categories. Smaller regional players have also emerged offering localized services in local languages for South American independent creators and audiences.

*Note:
1.Source: CoherentMI, Public sources, Desk research
2.We have leveraged AI tools to mine information and compile it