Creator content isn’t an experimental area for advertisers anymore. It’s an established, full-funnel channel that can deliver measurable results. Why is the channel so important right now?
Advertisers take creators seriously. Some 44% of advertisers plan to increase investment in creator content in 2024, with an average increase of 25%, according to the Interactive Advertising Bureau’s (IAB’s) recent Creator Economy Opportunity: Where Authenticity Meets Impact report. More than 90% of advertisers consider creator content a high-quality ad channel. We project 82.7% of US marketers will use influencer marketing (which overlaps with creator marketing) next year.
“The creator economy, valued at $250 billion this year by Goldman Sachs, is expected to nearly double to $480 billion by 2027. Savvy marketers know that they need to reach their customers in content that resonates with them,” said David Cohen, CEO of the IAB, in a statement. “There is no doubt—creator content is now a vital part of the mix.”
Creator content’s impact is measurable. Nearly 90% of advertisers use the same KPIs to measure both creator and studio content, according to the IAB. That means they can directly compare the impact of both kinds of content. The report also found that 86% of advertisers have confidence in their ability to measure creator campaigns’ effectiveness.
Consumers are paying attention. Some 39% of consumers are watching more creator content than a year ago, according to the IAB. In comparison, 22% of consumers are watching more studio content.
Viewers are watching creator content with a desire to learn and connect, as compared with the more passive way they’re watching studio content, according to the IAB.
Time spent with YouTube by US viewers will hit 50 minutes in 2024, while time spent with TikTok users will reach 55 minutes, according to our forecasts.
Here are some tips for working with creators in 2024.
Don’t: Think of creator content as being at the top of the funnel. With the advent of TikTok Shop and other platform tools shortening the path to purchase, creator content isn’t only for building brand awareness.
Do: Recognize creator content’s full-funnel potential. The IAB emphasized creator content advertising’s ability to accelerate the purchase funnel by collapsing awareness, interest, and consideration.
Don’t: Overproduce. Viewers look to studio content for high-quality production. They’re not looking for that from creator content.
Do: Trust your creators. They are their own content producers, and they know what their audiences will respond to. Make sure you’re working with partners that are brand-suitable, and then let them get to work.
Don’t: Keep things too basic or broad. Most creators aren’t making content for everyone; they’re making content for their own viewers. That’s a good thing for brands that want to reach particular audiences.
Do: Go deep on certain topics. Viewers turn to creators to learn about specific interests, and creator content should serve those niches.
This was originally featured in the eMarketer Daily newsletter. For more marketing insights, statistics, and trends, subscribe here.
