Creator ad spend growing four times faster than total media industry

U.S. ad spending in the creator economy is projected to reach $37 billion in 2025, growing nearly four times faster than the total media industry, according to a new report from the Interactive Advertising Bureau.

The “2025 Creator Economy Ad Spend & Strategy Report” found that ad investment in creator-led media has more than doubled from $13.9 billion in 2021 to an estimated $29.5 billion in 2024. That figure is expected to grow by 26% in 2025, outpacing the 5.7% growth forecast for the broader media industry.

Brands are increasingly treating creators as a separate media channel, with 48% of buyers now considering them 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,” said David Cohen, chief executive officer of the IAB. “However, with that maturity comes a need for clear standards, better measurement, and tools to navigate an incredibly fragmented ecosystem.”

The report shows that marketers are employing creator partnerships across the marketing funnel. The top goals for creator campaigns included building brand awareness (43%), reaching new audiences (41%), enhancing brand reputation (35%) and driving online sales or conversions (32%).

Return on investment was cited as the top performance indicator for 40% of ad buyers using creator content.

“Creator marketing isn’t just about awareness — it’s proving its value across the full funnel,” said Chris Bruderle, vice president of industry insights and content strategy at the IAB.

Still, brands reported challenges in finding the right partners. A third of advertisers said identifying suitable creators is their biggest hurdle. Audience alignment and creator reputation were the most important criteria for selection, named by 56% and 58% of respondents, respectively.

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Zoe Soon, vice president of the IAB Experience Center, noted that the ecosystem remains fragmented, with inconsistent partnership models and limited standardization.

“The result is an environment where strategic matchmaking is often more art than science,” Soon said.

To streamline processes, nearly 75% of advertisers said they are using or plan to use artificial intelligence in creator campaigns within the next year. Use cases include content editing (49%), developing creator briefs (46%) and personalization (45%).

Despite the uptake in AI, 95% of advertisers expressed concerns about its use in creator marketing. The loss of human connection was the top concern cited, reflecting the importance of relatability in creator-led campaigns.

Advertisers are also calling for better attribution models, consistent reporting standards and improved discovery tools to evaluate creators and authenticate audiences.

“Without these foundational elements, it’s difficult to link creator activations to meaningful business outcomes,” said Soon.

The IAB’s projections focus on direct brand investment in creators for sponsored content, paid amplification, and planned adjacencies. This differs from broader market estimates that include non-advertising revenue streams such as subscriptions, tips and merchandise.

The full “2025 Creator Economy Ad Spend & Strategy Report” is available on the IAB website.