CPM (Cost Per Milli) is the revenue multiplier for different categories of content. For example, pharma related content would have a higher CPM than entertainment related content.
The incentives are skewed towards certain types of content, so this pushed creators to make advertiser friendly content or high-CPM content. Is the vacuum filled by other types of creators? Does the free-market balance out the opportunities or are some industries that need more creators?
Hi Nicket, great question! The creator economy presents tremendous growth opportunities as businesses strive to democratize content creation, allowing creators themselves to monetize rather than relying on larger companies like Twitter, TikTok, Instagram, and Facebook to do so. It’s fascinating to consider the possibility of big pharma hiring creators, although I haven’t personally come across their footage if they have already ventured into this space. However, it would require extensive regulatory and legal work to ensure that creators are not inappropriately recommending medications. Furthermore, the way CPM (Cost Per Mille) is used differs significantly in the context of advertising. For instance, the pharmaceutical industry naturally experiences higher CPM due to the stringent regulatory and compliance rules imposed on their advertising practices. Their advertisements are subject to limitations, much like brokerages. If you’re exploring the topic of creators or influencers in general and the content they provide, it might be more appropriate to consider utilizing a different metric. I hope this response aligns with your original question, and I’m eager to hear any additional inquiries you may have after reading this. Feel free to ask away!
Hi Sebhia, great point about the regulatory hurdles in different industries. You’re right, I don’t see many creators specifically creating content with direct sponsorships from big pharma, but I do see occasional advertisements from hospital systems like Kaiser, Sutter, etc on YouTube videos. Those are because YouTube decided that content creator has the right audience (and appropriate content) that matches the advertiser’s target audience.
As a content creator who specializes in creating new channels with automated content I wonder if there are opportunities out there with a disproportionate advantage. For example, I am certain advertisers like Nord VPN or other software solutions that serve a global customer-base are saturated with the number of potential advertisers. However, big pharma, brokerages, etc have a more narrow list of potential advertisers. Any idea on how to find those unmet needs?