The era of social media megastars is fading. Here's what's next.

"As algorithms on TikTok and Instagram become more personalized, everyone's For You page is tailored to them. That means creators aren't appearing to new audiences as often, which is hurting their chances of becoming universally recognized celebrities. We're entering the era of the "niche creator," and it's changing how talent agents, managers, investors, and other industry executives think about the influencer business."

"Few are betting on the idea of incubating influencers into A-list stars. The new strategy is all about finding creators who make specialized content, have a small but fiercely loyal fan base, and are hungry to build businesses outside the social feed. There are vastly more creators than ever before. The Interactive Advertising Bureau estimated last year that there are about 1.5 million full-time content creators."

Algorithms on TikTok and Instagram are increasingly personalized, tailoring each user's For You page and reducing creators' exposure to new audiences. The reduced cross-audience visibility makes it much harder for creators to become universally recognized celebrities. Industry strategy is shifting toward niche creators who produce specialized content, cultivate small but fiercely loyal fan bases, and pursue business ventures beyond social feeds. Dramatic growth in creator numbers, widespread amateur posting, and AI video generators have increased content volume and competition. Success now requires a clear niche and novel contributions rather than generic trends or dance videos.

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