Dive Brief: U. S. ad spending on the creator economy is expected to hit $37 billion this year, marking a 26% rise from the $29. 5 billion projected for 2024 and nearly tripling the $13. 9 billion spent on this channel in 2021, according to a new report from the Interactive Advertising Bureau (IAB) shared with Marketing Dive. The IAB’s “Creator Economy Ad Spend and Strategy Report” underscores the growth of creators in advertising, noting that almost half of marketers consider creator content a “must have. ” The findings also emphasize the expanding role artificial intelligence (AI) is anticipated to play in creator content. The report points out ongoing challenges, with one-third of advertisers identifying “finding the right creator” as the biggest hurdle in this space. Other key issues include the need for improved attribution, reporting, and standards for audience authentication. Dive Insight: The creator economy has rapidly shifted from being an experiential channel to an essential marketing tool. The IAB’s study surveyed over 450 ad-spend decision-makers, with 48% stating that creators are vital to their marketing strategies, ranking this channel third in importance after paid search and social media. Respondents highlighted creators’ ability to deliver personalized content at scale and forge strong connections with their audiences as primary reasons for investing in this sector. Most brands deploy creator campaigns to enhance brand awareness—a top goal for 43% of respondents—and to reach new audiences, a priority for 41%. Nearly one-third of advertisers aim to drive online sales and conversions, indicating value across the purchase funnel.

In fact, 40% of those surveyed cited overall return on investment as their chief performance metric for creator campaigns. A significant challenge is identifying creators who align well with the brand. The report finds that 58% of respondents consider reputation their primary criterion when evaluating creators, while 56% prioritize audience alignment. “The creator marketing ecosystem remains highly fragmented, with diverse partnership models, separate budgets, and limited standardization, making it difficult for marketers to evaluate factors such as audience fit or creator credibility at scale, ” said Zoe Soon, vice president of IAB’s Experience Center, in the press release. As in other media sectors, AI has disrupted the creator economy. Nearly 75% of creator ad buyers are currently using or plan to use AI within the next year to enhance efficiency. Specifically, 49% are employing AI for content editing, 46% for developing creator briefs, and 45% for content personalization. However, 95% of advertisers express concerns about AI’s role in creator campaigns, especially regarding its potential effect on human connection. Advertisers also voice worries about transparency, measurement, and standardization. The IAB’s report identifies areas for improvement, including advanced attribution methods, consistent reporting practices, tools for creator discovery and vetting, and standards for audience authentication.