NEW YORK—Ad spend in the creator economy has more than doubled since 2021 from $13.9B to $29.5B in 2024 and that amount is projected to reach $37 billion in 2025 — a 26% increase year-over-year and about 4x faster than the media industry overall, according to a new report from the Interactive Advertising Bureau (IAB).
In its 2025 Creator Economy Ad Spend & Strategy Report, the association says the surge in investments in the U.S. creator economy “is reshaping modern media strategies.”
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, IAB said, with nearly half (48%) of ad spenders considering creators a “must buy,” ranking only behind social media and paid search.
Leveraging the creator economy to connect with audiences is no longer experimental for marketers — it’s essential.
David Cohen, CEO, IAB
“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.
While brands leverage creator campaigns most often for awareness and reach, the study found sales is also among their top campaign goals:
- Building brand awareness (43%)
- Reaching new audiences (41%)
- Enhancing brand reputation / trust (35%)
- Driving online sales / conversions (32%)
With online sales listed as the fourth most common goal, brands are also utilizing creators across the purchase funnel, IAB says, with 40% of buyers ranking 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.”
The report also noted the challenges in helping connect content creators with the right brands and audiences, IAB said, with a third of the brands surveyed considering 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.
“The creator marketing ecosystem is still highly fragmented, with varying partnership models, siloed budgets, and limited standardization 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.”
When it comes to artificial intelligence, nearly three-in-four creator ad buyers are already using or planning to use AI within the next year, IAB said.
This increasing reliance on AI underscores a strategic shift toward automation that prioritizes scale, speed, and creative optimization. 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 personalization (45%)
However, despite AI’s growing role, 95% of advertisers have concerns about using AI in creator marketing overall, according to IAB. 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.
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.”
