The growing S$19 billion market that’s driving the creator economy

When the pandemic struck and safe-distancing measures were at their height, athletes around the world suddenly found their raison d’etre – competitions and tournaments – cancelled. 

Mr Tan Ming Wei, one of Singapore’s top taekwondo athletes, partially filled the void by becoming a content creator on TikTok. His humorous videos, some of which were done with his father, have garnered over 375 million likes with over 22 million followers, making him one of the most well-known TikTok creators in South-east Asia.

“TikTok democratises the process of content creation as well as the reach that creators have,” said Mr Justin Keh, head of APAC operations, TikTok Creator Marketing Solutions.

CREATING VALUE THROUGH TRUST, AUTHENTICITY AND PARTICIPATION

The demand for creator content has resulted in an ecosystem of brands, agencies, creators and platforms coming together to create ripple effects across the growing digital economy. The global creator market was estimated to be around US$13.8 billion (S$19 billion) in 2021, according to Statista.

As a platform that facilitates the creator economy, TikTok aims to open up new career paths for content creators. One of its strategies focuses on partnering businesses that build networks that can aggregate the power of content creators to help brands engage with consumers.

One such business is Hepmil Media Group, a Singapore-based firm that supports TikTok creators. Mr Adrian Ang, Hepmil’s co-founder and chief creative officer, said: “The TikTok creator community is the heart and soul of the platform. It is a place where more than 1 billion people come to be entertained.”

Creators are drawn to TikTok because the platform makes it easy for them to tell authentic stories in entertaining ways. This opens up opportunities for them to work with brands in the process.

To encourage the growth of its creator community, TikTok invests heavily in educating brands, creators and governments about the platform’s potential through the TikTok Creator Marketplace and Creator Portal.

“We are focused on rolling out more resources and tools around education and thought leadership that will guide both brands and creators on things like creative best practices, building better content and being more innovative,” said Mr Keh.

The participatory nature of online platforms has created a new way for brands to engage with creators and connect with diverse communities. For instance, Southeast Asian fashion brand Pomelo used the TikTok Creator Marketplace to collaborate with four creators to drive awareness of its Chinese New Year campaign. Pomelo garnered nearly 5.3 million video views across the four videos that were created.

A TikTok study found that its users are one-and-half times more likely to immediately buy something they discovered on the platform compared to users on other platforms. It is reshaping the purchase path, thanks in part to users’ willingness to upload unboxing, how-to and tutorial videos after buying a product. This is, in essence, an updated form of word-of-mouth marketing.

Said Mr Keh: “One of the tangible effects we’re seeing is that brands have managed to harness the power of creators in their brand-building efforts through the values of what we call trust, authenticity and participation.”

ADVOCATING FOR GOOD CAUSES

Sustaining a career as a creator goes far beyond producing viral videos – content creators have to focus on building and serving a community as well.

“Listen to your audience and look for solutions to problems that you can address in the videos. Don’t just look for the virality because it's all about the community,” said Mr Ang.

One creator who did just that is Ms Vina Muliana (@vmuliana), an Indonesian creator who has been using TikTok to help those struggling to find jobs during the pandemic. She has amassed nearly 4.7 million followers since she posted her first video.

Her videos – which touch on career-related content such as tips for resume writing and job interviews – were recognised as Best of Learning and Education at the TikTok Awards Indonesia 2022.

“It's been almost 16 months since I started my journey as a creator, and I can say that TikTok has changed my life. I never thought I would gain so many followers in such a short time,” said Ms Muliana.

Another inspirational creator is Mr Sirawit Ittisoponpisan (@sirawit_it), a lecturer at Prince of Songkla University in Thailand. He leverages TikTok to spread general knowledge about science and has grown his following on the platform to over 2.5 million in just two years. “I wouldn’t describe myself as a hero but at least I think I’m on my way to success in my career.”

Southeast Asia's digital economy has expanded rapidly, growing almost 50 per cent in value between 2020 and 2021. Connected consumers have access to an increasingly wide variety of content across an equally diverse range of platforms – from streaming services to social media and multi-channel networks.

Spurred on partly by the pandemic, some 40 million new Internet users came online in 2021, bringing Internet penetration in Southeast Asia to 75 per cent. This represents a significant potential market – and opportunities – for regional creators.

“What we've learned during the pandemic was how much family and relationships play a key role in our lives. As the world opens up, the importance of platforms that allow people to feel that sense of connection and belonging will remain the same,” said Mr Keh.

Watch the full TikTok Southeast Asia Dialogues forum and find out more about becoming a creator on the platform.