Creator Economy Ad Spend to Reach $37 Billion in 2025

What to Read Next

1. Storyblocks Introduces AI Toolkit to Empower the Modern Creator

2. Iterable Unveils MCP Server to Power AI-Driven Marketing Automation

3. Creator Economy Ad Spend to Reach $37 Billion in 2025

4. Circana, Yahoo DSP Expand Partnership to Enable Campaign Conversion Feed

5. Bombora Expands Integration with StackAdapt

The Interactive Advertising Bureau (IAB), the trade association for the digital advertising industry, has released its 2025 Creator Economy Ad Spend & Strategy Report, revealing a surge in US creator economy investment that is reshaping modern media strategies.

Ad spend in the creator economy has more than doubled since 2021, from $13.9B to $29.5B in 2024. The report found creator economy ad spend is projected to reach $37 billion in 2025 — a 26% increase year-over-year, about 4x faster than the media industry overall (5.7% per IAB 2025 Outlook Study: September Update).

Creator ad spend has jumped up the ranks as brands are now treating creators as a distinct channel, not just a tactic within social media. Nearly half (48%) of ad spenders consider creators a “must buy,” ranking only behind social media and paid search.

ALSO READ: IAB Announces State of Data 2025: AI Poised to Revolutionise Advertising

“Leveraging the creator economy to connect with audiences is no longer experimental for marketers — it’s essential,” said David Cohen, CEO, IAB. 

“The significant growth we’re seeing reflects a deepening commitment from brands to invest in creator-driven strategies. However, with that maturity comes a need for clear standards, better measurement, and tools to navigate an incredibly fragmented ecosystem.”

Additional key findings from the report reveal how brands are leveraging creator advertising to activate, scale, and measure their media strategies.

Brands Leverage Creators Across the Funnel

While brands leverage creator campaigns most often for awareness and reach, the study found that sales are also among their top campaign goals:

• Building brand awareness (43%)
• Reaching new audiences (41%)
• Enhancing brand reputation / trust (35%)
• Driving online sales / conversions (32%)

ALSO READ: IAB Tech Lab Unveils Green Supply Path Initiative

With online sales listed as the fourth most common goal, it’s clear that brands are also utilising creators across the purchase funnel. In fact, 40% of buyers rank overall ROI as their top KPI for creator campaigns.

“Creators are unmatched when it comes to storytelling and cultural relevance — however, brands are also seeing them as performance drivers when integrated strategically,” added Chris Bruderle, Vice President, Industry Insights & Content Strategy, IAB. 

“Creator marketing isn’t just about awareness — it’s proving its value across the full funnel.”

Creator Challenges: One Size Does Not Fit All

While creators have proven to be powerful partners for brands, helping them connect with audiences and drive meaningful engagement, there are still challenges in finding the right ones. A key friction point remains in identifying the right creators to partner with, as a third of brands consider it their biggest hurdle.

According to the study, more than half of brands said creator reputation (58%) and audience alignment (56%) are among the top criteria when selecting a creator to align with their brand, demonstrating that credibility and relevance define effective partnerships.

ALSO READ: IAB Launches IAB Diligence Platform

“The creator marketing ecosystem is still highly fragmented, with varying partnership models, siloed budgets, and limited standardisation making it tough for marketers to assess things like audience fit or creator credibility at scale,” said Zoe Soon, Vice President, Experience Center, IAB. 

“The result is an environment where strategic matchmaking is often more art than science, and where brands are calling for better discovery tools to guide their investment decisions.”

While AI Helps with Efficiency, Brands Still Remain Cautious on its Use

To navigate these complexities and boost operational efficiency, many marketers are turning to artificial intelligence (AI). Nearly three-in-four creator ad buyers are already using or planning to use AI within the next year.

This increasing reliance on AI underscores a strategic shift toward automation that prioritises scale, speed, and creative optimisation. Those currently using AI for creator content are leveraging it for content refinement, work efficiency, and scalability, rather than full creative replacement:

• Content editing (49%)
• Creator briefs (46%)
• Content personalisation (45%)

ALSO READ: The Rise of Creative Entrepreneurs

However, despite AI’s growing role, 95% of advertisers have concerns about using AI in creator marketing overall. Brands state their top concern with AI is the loss of human connection, which is a very important consideration when “building genuine, relatable experiences” and the top reason they invest in creator marketing.

Creator Investment Needs Measurement, Standardisation, and Transparency 

Brands are calling for better attribution, more consistent reporting, and operational tools to link creator efforts to measurable business outcomes.

Measurement, standards, and tools that promote transparency and comparability emerged as the top opportunity areas for improvement, including:

• Advanced attribution
• Consistent reporting
• Creator discovery and vetting tools
• Standards for audience authentication and fraud prevention

Soon concluded, “Without these foundational elements, it’s difficult to link creator activations to meaningful business outcomes, which is a critical next step as creator advertising becomes a core part of modern media strategy.”

ALSO READ: IAB Updates Guidelines For Measuring 3D Ads For The Metaverse