Why Brazil is Leading the Creator Economy

🇧🇷 I just landed back in Sao Paulo having spoken to dozens of creators, agencies and entrepreneurs in Brazil over the past couple of months from a distance back in Berlin.

My goal from speaking to so many people was to break down a paradox and to understand why…

a) A country that has the highest consumption of social media in the world and arguably the most successful creators (by engagement and real-world influence)

b) Also pays so little to creators. Over half of the creators in Brazil earn less than 100 USD per month.

In this article, I break down my findings into:

1. Supply-side issues of creators

2. Demand-side issues of creators

3. The inflection point and my opinions on where Brazil is heading

🚛 Supply-side issues: Everyone wants to be a creator but not all can make money…

Right now I believe the creator economy is one of the most unequal systems in the world right now with all the value trapped in the top 1%.

And in Brazil, this is no different.

Brazil’s creator landscape is saturated. Technically, half of Brazil’s population are creators (the highest proportionally in the world). In a recent Adobe report, they found that there are 106 million people who contribute with online content out of a total Brazil has a population of 214 million.

With such competition, it isn't a surprise that creators with over 100,000 followers on social often don’t monetize at all in Brazil. Meanwhile, their counterparts in smaller markets such as Germany or the UK will earn more with a fraction of the following (of course the currency and economic development is important).

A pot of gold sits at the top of the ladder of the Brazilian creator economy - but it seems impossible to reach.

To get there as a creator there are likely 2 paths:

• Luck. some of Brazil’s top creators and influencers never had the intention to make it big but the right personality and the right timing has made some capture the nation’s hearts. Ranging from Xurrasco to Tainá Costa.

• Network. After some forensic investigation, I realised the interesting relationship between top creators; they went to school together or their sister married another creator’s cousin. But once you’re in the circle then you’re set; probably you’ll live together with creators in Londrina (a small city in the state of Parana popular with the creator community) and be invited on chartered LATAM flights to go to blow out parties in Brazil’s nord este (north east).

🛍 Demand side issues: It’s tough to make money because there is not enough to go around…

The majority of the income in the creator economy globally comes from brand deals and advertisements.

But digital ad spend in LATAM is the lowest in the world by continent. In Brazil ad spend only just surpassed traditional television.

Ad spend is steadily migrating over. Companies like Squid that connect brands with creators are accelerating that.

And the fans?… 👀

Fans in Brazil consume a lot of content and buy the brands creators promote. The average Brazilian spends more than 10 hours a day online (three hours longer than the global average) - most of it on social media.

Furthermore, 40% of Brazilians have bought a product because a creator promoted it. This is the highest in the world.

BUT the problem is that fans do not directly spend on creators!

Rather the money is still being funnelled to the brands. Patreon, the darling of the global creator economy, and who’s mission I love, does not work in Brazil.

This says a lot about fan behaviour.

Fans love creators but they are not willing to pay for extra content. And by not willing, I mean most fans do not have the disposable income to. Unfortunately, this is a macro-economic issue that no private business can change.

🌊 But I really believe the tide is turning…

I do not believe in a future where the top 1% of creators in Brazil capture most of the value in the market. At the beginning of the article I made the bold claim that the creator economy is one of the most unequal systems in our world right now. But like humans have done countless times… we’ve democratised systems. And the creator economy is at an inflection point.

New models and trends such as live commerce, media for equity and the rise of UGC has the potential to change this.

This year Tiktok shop opened in Brazil - and i’m excited to follow its progress.

Already the most engaging verticals in the 3 Fs (fashion, fitness and food) are beginning to be democratised.

I believe Creator led brands will thrive in Brazil - starting with common and popular goods different brand e.g bikinis, cosmetic products and health supplements.

Corporates too are beginning to invest in the next wave of creators through their marketing budgets. Mercado Livre splash 500k reals a month (100k USD) to just test ideas with creators.

👀 Wherever the creator economy is heading… my bet is that Brazil will be amongst those leading the way. 🇧🇷

You can follow my journey as a creator on Instagram.