How the creator economy is shifting for survival

Author

Jessica Smalley
August 25, 2025

Hey creator,

What do you expect from the creator economy in the remaining half of the year?

I think it’s safe to say that the excitement and fear we felt about AI at the start of the year is starting to dampen down and evolve into more creators and brands integrating it into their workflow.

Can we expect other changes in the market?

Let’s get into it 👇

—

BTW I hold 1:1 strategy sessions, which you can schedule here: https://calendly.com/smalleyjess/powerhour 

This issue will bring you up to speed on what’s happening in the creator economy:

  • Quick Fire news headlines

  • Worth The Read news stories

  • Social Media Updates that you need to know about

  • Check out my READ, LISTEN + WATCH recommendations for this week

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Quick Fire 🧨

Worth The Read

How the creator economy is shifting

The creator economy has matured quite a lot this year.

Up until now, the industry felt like it was in an uncontrolled phase of growth.

But as the industry carves a larger market size and greater reliance on data-driven decision-making, a more nuanced phase makes way.

These are the shifts we’re seeing in the back-half of 2025:

  1. Pullback on diversity

    Have you noticed that we’re not as “excited” about ticking the inclusion box as we were last year? We’re seeing a significant pullback on diversity and inclusion, and deep ripple effects of that are playing out, especially in corporate America. Major corporations such as Meta, IBM, McDonald’s, Disney, Target, Lowe’s, Walmart, Ford, and others have scaled back, rebranded, or removed references to their diversity and inclusion policies. Meanwhile, American Eagle released that controversial campaign, Sydney Sweeney Has 'Great Jeans'. This reflects a moment in time when creators and brands are trying to balance broad appeal with authentic inclusivity in a politically charged environment.

    The lesson here is don’t retreat from being inclusive.

  2. Favouring of micro and niche influences

    We’ve watched this trend play out over the past year or so, but recently, brands are passing off on the mid-tier creator. I’ve experienced this myself, working with creators and brands, that there is a growing focus on ROI rather than reach. Brands want conversions, not eyeballs. 

  3. Business and a social media following 

    We’ve learnt that it’s not enough to build a business on the backs of major social media corporations’ algorithms. Creators who do are playing a very risky game. As we wait for the US to decide whether it will actually ban TikTok from its country, you will see more creators build and launch businesses between now and the end of the year

Socially Updated

Instagram

  • added a new feature that will enable Reels creators to effectively build their own series.

  • added ‘Show Promotions’, letting you display a sale or offer from your shop that ends within seven days, directly on your profile.

  • Edits has added Text-to-Speech, with a choice of voices.

YouTube 

TikTok

LinkedIn

  • adds more post-level analytics update

The Dig

READ: Your content lives and dies by the hook. But what exactly makes a good hook? Shouting ‘10 ways to write a compelling hook’ doesn’t give me a framework for what works. Instead, Buffer explains the anatomy of what makes for a good hook, giving you the exact tools to implement it into your own work.

LISTEN: Comedian Theo Von invited journalist Mariana van Zeller on his podcast to discuss the humans who run the darkest part of our society - the black market. Mariana lifts the lid on the insane systems that allow bride trafficking, hitmen and ghost guns to exist in plain sight. But the biggest reveal is how Mariana manages to convince people to tell her their story. Despite spending however many years studying human behaviour, this podcast helped me understand even more.

WATCH: Colin and Samir, the creators creator, sat down with a beginner YouTuber and dissected a video down to thumbnail and title. Within 14 minutes, they explain how to improve a video’s performance by asking key questions around who your target audience is and how to communicate to them in the best possible way.