Google and Meta's rising ad revenues are music to content creators’ ears

livemint.com:

The second-quarter results for global digital giants Meta (formerly Facebook) and Alphabet (Google’s parent company) last week brought some relief as their ad revenues show an upward trend. This growth has also been seen in India, where the ad revenues of both Meta and Alphabet have surged in the past few years. The latest results offer a glimmer of hope for content creators in India, who rely heavily on these tech behemoths for the revenues.

Content creators have emerged as a significant force in the digital landscape, providing engaging and diverse content to audiences across social media platforms. Their hard work and creativity are rewarded through revenue-sharing by these platforms, which incentivises them to continue producing captivating content. Content creators have two main revenue streams – those from platforms such as Meta and Alphabet, and paid partnerships.

While the latter is more lucrative, it is accessible only to the top 20% of creators. The remaining 80% depend heavily on revenue shares by the platforms themselves. However, herein lies the challenge – a classic chicken-and-egg situation.

Without substantial viewership and engagement, content creators struggle to attract lucrative paid partnerships. And without attractive, high-quality content, they may struggle to amass a sizable audience. The interplay between these factors dictates the financial success of content creators..

While Alphabet's revnue-sharing is relatively predictable, Meta's is erratic. Some creators have reported earning substantial sums one month, only to receive meagre payouts the next. This makes it difficult to maintain a stable income.