A new report from the Interactive Advertising Bureau showing marketer interest in putting their ads alongside creator content shows the potential for audio creators to benefit from buyers looking to leverage the creator economy in their media budgets.
After tracking over 1,000 consumer purchase journeys, the report found that advertising alongside creator content can accelerate the purchase funnel by collapsing the awareness, interest, and consideration stages. The study, which the IAB conducted with Talk Shoppe, finds 89% of advertisers feel positive about creator content advertising, and 92% consider it a high quality channel. The report also shows 86% of advertisers say it’s easy to move ad budgets to creator content, and this trend is on the rise. 44% of advertisers plan to increase their investment in creator content in 2024, with an average increase of 25%.
“Many marketers still think of creator marketing as a brand awareness driver only,” said one advertiser that took part in the survey. “But as the channel has evolved, it's increasingly become a powerful tool for driving action and results at every stage of the funnel, from awareness and consideration, to conversion and even advocacy.”
Nearly 90% of advertisers surveyed said they use the same KPI metrics across both creator content and studio content, and 86% of advertisers have confidence in the ability to measure the effectiveness of creator content campaigns.
“Creator content marketing is a powerful vehicle for driving full-funnel impact, and advertisers are finding tremendous success adding it to their marketing mix alongside studio content advertising,” said Jack Koch, Senior VP of Research & Insights at the IAB. “This report helps marketers more deeply understand the opportunity and how best to activate campaigns leveraging creator content. As more advertisers see real success with creator marketing, those who haven't invested yet risk falling behind.”
The report says creator content ads are more effective at increasing brand loyalty, concluding they have 1.43-times greater impact than studio content. “Aligning with creator content builds brand favorability prior to purchase while continuing to drive value post-purchase - resulting in powerful long-term brand relationships,” it says.
Yet the IAB says there are still “some hesitations” among marketers that choose not to spend with creators. The top reasons include the lack of control on what creators will say or where their ads will appear, fearing potential negative brand association or impact. Marketing managers are also say the performance of creator content can be inconsistent; and might not always align with a brand's image or message. And for some marketers, creator content advertising is perceived as confusing to buy, or they don’t know where to get started. The IAB says education is key for overcoming that.
Yet con consumers are just as open to seeing ads in creator content as they are in studio content, with two-thirds of consumers saying they are open to seeing ads in both creator and studio content.
Driven by the growth of TikTok, the report says four in ten (39%) consumers are watching more creator content than a year ago versus 22% watching more studio content. And consumers said they are significantly more likely to search for additional content about a topic and interact with the content by liking, commenting, or subscribing.
That is helping loosen some budgets. Among those surveyed, 44% said they will spend more on creator content in 2024 while a majority 52% will hold spending steady. Just four percent expect to spend less on creator content 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. “There is no doubt – creator content is now a vital part of the mix.”
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