Creatorverse: For Brands, Large Followings Are Out and Engagement Is In

Macro and microinfluencers have been capturing advertiser interest

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Christopher Smith for TheWrap

Hey Creatorverse readers,

Since I launched Creatorverse, I’ve taken dozens of meetings with leaders in the creator space who have all told me the same thing: Smaller influencers are in. 

Generally, the creator marketplace can be broken down into four categories:

  • Megainfluencers, who have followings in the millions.
  • Macroinfluencers, whose followings are roughly between 100,000 and a million.
  • Microinfluencers, whose followings are between 10,000 and 100,000.
  • Nanoinfluencers, whose followings are under 10,000.

Whereas brands used to almost exclusively focus on that top tier (think MrBeast and Charli D’Amelio), brands are now expressing more interest in macro and microinfluencers, meaning paydays for those creators. This shift has happened as brands have started to prioritize high engagement rates over large followings.

Many of these smaller creators are seen as experts in their own niche communities and, as such, can more directly influence the buying habits of their followers. A good example of this is Mrs. Space Cadet, a TikToker and self-described “struggle runner” with over 940,000 followers who often reviews shorts based on how likely they are to be “gobbled” by her thighs. I’ve purchased one pair solely based on her recommendation. 

Community specificity also allows brands to partner with creators who solidly fit the overall vibe of their brand rather than trying to force a campaign onto a bigger creator. Then there’s the allure of getting in on the ground floor. Who doesn’t want to partner with the next Addison Rae or Nick DiGiovanni?

The numbers back this up. Only one in four consumers said that a creator having a large following or being followed by one of their friends swayed them to follow that creator, a cross-platform study conducted by Alter Agents and commissioned by Whalar found. Instead, the biggest reason why consumers followed a creator was because of relatability.

Even platforms have noticed this shift. This week, YouTube’s hype program — an offering that encourages users to boost new content posted by creators with under 500,000 subscribers — rolled out globally in 39 countries, including the U.S. This program was developed after YouTube surveyed over 2,500 viewers and found over 75% of respondents and over 80% of Gen Z wanted to help small and mid-sized creators grow their followings. 

And YouTube has been putting its money where its mouth is. The platform’s upcoming NFL game in Brazil includes several flashy creators like Deestroying and IShowSpeed, but the game is also tapping smaller creators like Tom Grossi, Kay Adams and Peter Overzet. 

So if you’re thinking about becoming a creator, go for it. This pond is filled with big fish but the smaller guppies are getting fed too. Now, onto the rest.

Kayla Cobb
Senior Reporter
kayla.cobb@thewrap.com

P.S. I’m hosting a livestream roundtable, “Creator Power: The Business of Influence, Presented by Adobe” at noon PT, on Sept. 9, with some killer panelists from Adobe, Meta and Smosh as well as creator and “Challenge Accepted” guru Michelle Kare. Save your spot today!


What’s New


“Good Hang with Amy Poehler” hosted its first live show

Need more proof podcasts are the new late night shows? Amy Poehler’s Spotify show hosted its very first live show on Wednesday at the Gramercy Theatre, complete with a recreation of her set and a live audience. It was all part of a paid partnership with Walmart. Look out, late night.

Speaking of podcasts, TMG Studios, the podcasting company founded by YouTube comedian Noel Miller, added five new shows to its lineup. Miller told TheWrap about why he didn’t look at follower counts when it came to his new lineup.

Bluesky goes dark in Mississippi over age verification concerns

If you’re in Mississippi and looking for an X replacement, good luck. Bluesky blocked all IP addresses from the state last Friday rather than risk breaking its strict, recently passed age verification laws. The law requires all social media platforms to ID and track all users under the age of 18 while requiring every user to share personal information to verify their age or risk a $10,000 fine per violation. That overhaul isn’t possible with Bluesky’s limited resources and infrastructure.

The TikTok deadline may be delayed … yet again

Trump told reporters that he’s considering extending TikTok’s deadline to sell “a little bit longer.” For those keeping track at home, this would mark Trump’s fourth extension for the social media app, but the President also assured the press TikTok has “buyers.” Elsewhere in the world, TikTok plans to lay off hundreds of U.K. workers as it turns to AI to moderate its content.


YouTube (Getty Images)

The AI Revolution


YouTube is secretly editing people’s videos using AI

YouTube’s tweaks have been small and have consisted of things like smoothing out skin and ironing out wrinkles in clothing. But some users are disturbed by the AI-looking aftermath.  

Rene Ritchie, YouTube’s creator liaison, confirmed the changes were happening and that they’re part of an experiment on “select YouTube Shorts,” explaining it’s intended to improve video quality and experience.

Meta is partnering with Midjourney for image and video generation

The company’s Chief AI Officer Alexandr Wang naturally announced the news on Threads. It’s unclear how exactly this partnership will impact the platform, but Meta’s platforms aren’t the only ones using AI for its content. This is likely a play to be more competitive with Google’s Veo video generation tool.

Perplexity is giving publishers a cut of their revenue

The free-to-use, AI-powered search engine will pay publishers for news articles that the company uses to answer user questions. The revenue pool for the company is currently set at $42.5 million, though Perplexity expects to increase that amount over time. 

That wasn’t the only major win for publishers in the war against AI this week. A group of book authors reached a settlement with the AI company Anthropic after suing the company for copyright infringement. Ultimately, a judge ruled that the AI company was able to use these authors’ work under the fair use provision as long as the company purchased the work legally. Since Anthropic went the illegally downloaded route, the law was not on their side, hence the settlement.


@straw_hat_goofy

Kpop Demon Hunters is #1 at Domestic Box Office#greenscreen

♬ original sound – Straw Hat Goofy

Movers and Shakers


Juju ‘Straw Hat Goofy’ Green joins iHeartMedia

Also known as “TikTok’s movie guy,” Green has over 3.6 million followers on the platform. He will now serve as a key entertainment contributor for iHeartMedia, providing listeners with weekly movie updates, reviews and recommendations. This continues the trend of more brands bringing creators in house.

Viral Nation is shaking up its C-suite

The leading global social media marketing and creator agency that works with companies like Audible, A24 and Microsoft announced several changeups this week. Moving forward, Nicholas Spiro will be the company’s chief commercial officer, and Brandon Lentino will be its chief creative officer. On the executive vice president level, Alice de Vries will head go-to-market and marketing. Finally, Justin Tweed will be the VP of revenue, and Nicolas Doyen will be the VP of product and data strategy.

Kaya Yurieff departs The Information

One of the best in the biz is taking some time off. After four and a half years, Yurieff is leaving the company to travel for a bit. She’s best known for spearheading the publication’s Creator Economy newsletter. Be on the lookout for where she lands next.


Who to Watch


IShowSpeed

Darren Watkins Jr., aka IShowSpeed, is taking Ryan Trahan’s trip across the USA and turning it up about 10 levels. For his latest project, Watkins will be touring at least 25 states in America. The catch? He will be live streaming 24/7 for 35 days straight. It all starts today. 

Earlier this summer, Watkins launched and completed his second Europe tour. But this marks the first time Watkins will film himself continuously during one of these tours. Twenty-four hour streams are nothing new to the world of social media. Kai Cenat, who frequently collaborates with Watkins, is known for them. But this is one of the most ambitious and longest of these streams ever attempted.


Bonus Content


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This report provides a weekly deep dive into the creator economy. It highlights key trends, political and technological developments, data points and industry leaders all with the goal of making you smarter about this constantly evolving space.

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