IAB forеcasts average 25% increase in advertising budget for content creators in 2024
According to the Interactive Advertising Bureau (IAB), advertisers are projected to increase their investment in content creators by 2024 significantly. Content creators in digital marketing agencies are expected to be in demand to help online businesses grow their foothold and reputation in the market.
The report said that 44% of the surveyed advertisers plan to raise invеstmеnt in quality content creation in 2024 by an average of 25%. Thе crеator еconomy is valuеd at USD 250 billion in 2023, pеr Goldman Sachs data citеd in thе rеport, and is еxpеctеd to grow to $480 billion by 2027.
Based in America, IAB is an organization that sets industry standards, oversees research projects, and provides legal assistance for the online advertising industry. On December 7, 2023, the advertising organization released the first-of-its-kind Research Report under the name, The Creator Economy Opportunity – Where Authenticity Meets Impact.
IAB did the research leading to essential findings in association with Talk Shoppe. It offers a deep insight into the evolving purchase journey of consumers, how buyers can influence the content creator economy in their budgets for media promotion, and where content from creators fits in social media alongside content produced in studios.
After analyzing more than 1,000 consumer purchase journeys, the report concluded that advertising with creator content could speed up the purchase funnel by collapsing the awareness, interest, and consideration stages.
Advertiser interest is rising as digital video consumption, led by creator content, reaches an all-time high. Around 39% consumers report watching more creator content now than 2022, while 22% of consumers said the same for studio-made content.
It said nearly 90% of advertisers incorporate the same KPI metrics in-studio content and creator content, and 86% have faith in the ability to measure the impact of creator content campaigns.
The report states that ads alongside creator content significantly impact the purchase funnel’s consideration, loyalty, and advocacy stages. Roughly 92% of these advertisers consider creator content a premium channel.
As creator marketing gains popularity, a recent report by the IAB outlines how brands can effectively use a combination of creator and studio ads. Two-thirds of consumers are open to seeing ads in both formats.
Consumers recognize ads within creator content as more relevant and natural, than seeing ads in studio content and find it slightly more memorable. With the allocation of creator content becoming more diversified, there is an opportunity for brands as 40% of consumers report watching creator content from their televisions.
