IAB Predicts Increased Advertiser Investment in Creators for 2024
Advertisers are projected to significantly increase their investment in creators by 2024, as consumer demand for creator content continues to fuel the growth of digital video consumption, according to a report by the IAB and TalkShoppe
Article Brief:
In 2024, 44% of the advertisers surveyed intend to boost their investment in content creators, with an average spending increase of 25%, as per the first creator economy report from the Interactive Advertising Bureau (IAB) and research agency TalkShoppe.
Advertiser interest is increasing as digital video consumption has reached a record high, especially driven by creator content. 39% of consumers now watch more creator content compared to last year, while 22% say the same for studio-made content. The report emphasizes that ads surrounding creator content have a significant impact on consideration, loyalty, and advocacy in the purchase funnel. Additionally, 92% of advertisers consider creator content to be a premium channel.
Article Insight:
The investment by advertisers in creators is on the rise, with the category being considered a "must-buy" due to its energy and capacity to captivate consumers, as per the inaugural report by IAB and TalkShoppe titled "The Creator Economy Opportunity: Where Authenticity Meets Impact." According to the report, the creator economy is currently valued at $250 billion, based on data from Goldman Sachs, and is projected to reach $480 billion by 2027.
"Savvy marketers understand the importance of connecting with their customers through content that truly resonates," noted David Cohen, CEO of IAB. "It's clear that creator content is now an essential component of the marketing mix."
One key point in the IAB report is the comparison of creator content - defined as less-scripted material on platforms like YouTube, TikTok, and Instagram - with studio-created content, classified as scripted video content on TV or streaming services. According to the report, ads around creator content have a more significant impact on consumer research and consideration stages of the purchase funnel compared to studio content. Furthermore, creator ads have a 1.4-times greater impact on building brand loyalty and a 1.3-times greater impact on inspiring brand advocacy.
Content creators are driving a surge in digital video consumption, with 39% of consumers watching more creator content compared to last year. In the U.S., 78% of consumers watch digital videos monthly, spending over four hours viewing video content on average each day. The average daily time spent watching digital videos has increased by 30 minutes over the past two years.
Advertisers are also optimistic about the creator category, with 89% viewing the channel positively. Additionally, 86% of advertisers find it "easy" to reallocate ad budgets to creator content, indicating that the channel is becoming a larger part of digital budgets. When it comes to tracking success, 90% of advertisers are using the same metrics for both studio-made content and creator content, which may help build confidence in the industry.
The IAB report on creator marketing reveals that brands can find success by balancing creator and studio ads, as two-thirds of consumers are open to both formats. Ads within creator content are seen as more relevant and natural to the viewing experience, while ads in studio content are perceived as slightly more memorable. Additionally, the distribution of creator content is diversifying, with 40% of consumers now watching creator content on their TVs. According to Jack Koch, senior vice president of research and insights at IAB, "Creator content marketing is a powerful tool for driving full-funnel impact, and advertisers who haven't invested in it risk falling behind."
The creator report from IAB and TalkShoppe utilizes data from a comprehensive research study that includes quantitative surveys, qualitative interviews, and daily digital ethnographies.
