- Among surveyed advertisers, 44% plan to extend their investment in content creators in 2024, with a mean spending increase of 25%, in keeping with an inaugural creator economy report from the Interactive Advertising Bureau (IAB) and research agency TalkShoppe.
- Advertiser interest is growing at a time when digital video consumption has reached an all-time high led by creator content. Among consumers, 39% report watching more creator content now versus last 12 months while 22% said the identical for studio-made content.
- The report asserts that ads running around creator content have a “tremendous impact” on the consideration, loyalty and advocacy stages of the acquisition funnel. Ninety-two percent of advertisers report that they consider creator content to be a premium channel.
Advertiser investment in creators continues to ramp up, with the category viewed as a “must-buy” as a consequence of its vibrancy and skill to have interaction consumers, in keeping with IAB and TalkShoppe’s inaugural report, titled “The Creator Economy Opportunity: Where Authenticity Meets Impact.” The creator economy is valued at $250 billion this 12 months, per Goldman Sachs data cited in the report, and is anticipated to grow to $480 billion by 2027.
“Savvy marketers know that they need to succeed in their customers in content that resonates with them,” said David Cohen, CEO of IAB, in an announcement. “There is little question — creator content is now a significant a part of the combo.”
A key highlight in the IAB report is how creator content, defined as less-scripted material published on platforms like YouTube, TikTok and Instagram, lines up with studio-created content, which it classifies as scripted video content that appears on TV or streaming services. According to the findings, ads around creator content have a greater impact on the patron research and consideration phases of the acquisition funnel than studio content. Additionally, creator ads have a 1.4-times greater impact on constructing brand loyalty and a 1.3-times greater impact on inspiring brand advocacy.
Creator content can also be a primary driver behind a boom in digital video consumption, with 39% of consumers reporting that they watch more creator content now versus last 12 months. Among U.S. consumers, 78% are monthly digital video viewers, per Insider Intelligence data cited in the report, with those viewers consuming over 4 hours of video content on average every day. The average day by day time spent watching digital videos has grown by half-hour over the past two years.
Advertisers accordingly are bullish in regards to the creator category, with nearly all (89%) viewing the channel positively. Additionally, 86% of advertisers report that it’s “easy” to maneuver ad budgets to creator content, an indication that the channel is taking on a bigger share of digital budgets versus being limited to funding from an experiential bucket, the report explained. When it involves tracking success, 90% report that they’re using the identical metrics across studio-made content and creator content, a familiarity that would help grow confidence.
As creator marketing grows, the IAB report details how brands can succeed in striking a balance of creator and studio ads, with two-thirds of consumers reporting that they’re open to seeing ads in each formats. Consumers perceive ads inside creator content as more relevant and natural to the viewing experience, while they’re more used to seeing ads in studio content and perceive it as barely more memorable. An opportunity could arise from the distribution of creator content becoming more diversified, with 40% of consumers reporting watching creator content from their TVs.
“Creator content marketing is a strong vehicle for driving full-funnel impact, and advertisers are finding tremendous success adding it to their marketing mix alongside studio content promoting,” said Jack Koch, senior vp of research and insights at IAB, in an announcement. “As more advertisers see real success with creator marketing, those that haven’t invested yet risk falling behind.”
The creator report from IAB and TalkShoppe leverages findings from a multi-phased research study, with results inclusive of quantitative surveys, qualitative interviews and day by day digital ethnographies.
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