In an increasingly digital world, the creator economy is having its moment in the spotlight. Digital video consumption has reached an all-time high, with creator content dominating, and advertisers are shifting more budgets toward creators holding smartphones. Some believe the era when creators were seen as a supplement to advertisers' strategies is over, replaced by creators potentially becoming the cornerstone of advertising strategies.

"Building advertising strategies from the creator outward is undoubtedly the wave of the future," said Ali Fazal, Vice President of Marketing at creator management platform Grin.

According to a joint report by IAB and TalkShoppeCreator Economy Report, 44% of marketers plan to increase creator investment this year, with an average spending increase of 25%. Goldman Sachs predicts the market, currently valued at $250 billion, will grow to $480 billion by 2027. As creators solidify their position in advertisers' budgets, their role may upgrade from an experimental category to a standalone one. Although "creators" and "influencers" are often used interchangeably, thekey difference lies in purpose—influencers are a type of creator who leverage their platforms to promote products and influence purchasing decisions.

Influencer marketing agency Billion Dollar Boy is experimenting with the concept of "creator-led advertising." Last year, the agency collaborated with Lipton Iced Tea on an internationalcreator-led campaignspanning digital out-of-home, social media, and experiential marketing, centered around an original song performed by TikTok creator Matt Storer and supported by multiple creators. The campaign ultimately achieved a 23.9% video completion rate, and brand sales increased by 15% during the two-week campaign in Australia.

Ed East, founder and global CEO of Billion Dollar Boy, believes this case demonstrates that creator-based advertising holds advantages over traditional strategies in the digital age.

"In the past, creator campaigns and influencer marketing were often bolted onto plans. Now, creator campaigns need to be at the core of the plan," East said.

As advertisers increase creator investment, trends anticipated for 2024—such as new ways to measure success and the revival of long-form video—may reshape some strategies. Meanwhile, the buzz around generative AI and social commerce may offer brands new opportunities for breakthroughs.

The Science of Being "Influenced"

According to the IAB report, beyond consumers' general appreciation for creator content, there are signs that such content is more meaningful than studio-produced ads, such as scripted video content on TV. The study found that creator ads have 1.4 times the impact of traditional ads on building brand loyalty and 1.3 times the impact on inspiring brand advocacy.

Notably, Ellyn Briggs, a brand analyst at decision intelligence company Morning Consult, points out that consumers are posting their own content on social media less frequently, but their appreciation for creator content is rising. This insight may help boost the visibility of brand-creator collaborations, though Briggs predicts that social media marketers this year will face a "highly turbulent landscape" that could trigger more consumer skepticism.

"Influencers especially need to fill the content gap," Briggs said, "but this also brings additional scrutiny and potential examination, as we saw in 2023, which could increase the risk of backlash."

Briggs added that failed creator campaigns are nothing new, citing last year'sShein fully-paid influencer trip, which sparked backlash when participants lavishly praised the company's often-criticized labor practices. Although consumers are increasingly likely to call out inauthentic content, they stillmaintain deep trustin creators, which requires creators to rethink how they reach audiences.

"I think we can officially declare that by 2024, using follower count to judge an influencer's potential success is outdated."

—Ali Fazal, VP of Marketing at Grin

"The way influencers sell will change because we see consumers expressing frustration with overconsumption and being constantly pitched to," said Megumi Robinson, Vice President of digital PR firm Belle Communication.

Robinson expects a trend to grow in 2024 where brands and creators will be more selective in choosing partners, making repeat collaborations more common. Fazal noted that this year may also see fewer "paid participation" deals—where creators accept brand partnerships despite having no genuine connection—warning that consumers are not blind to such collaborations.

"It seems obvious to me that Nicole Kidman doesn't use Lancôme cosmetics," Fazal said with a laugh.

To obtain more relevant content, Fazal also expects marketers will increasingly hire creators to produce content specifically for brands' own channels, rather than sharing content on creators' personal pages. Uber is an example, having established aTikTok creator strategythat leverages no more than six creators at any given time to produce content for the brand.

"Creators working independently without constraints can be more innovative, bold, and risk-taking, making the content more effective," Fazal said.

Follower Count Is 'Dead'

A focal point in the creator space is often the use of micro or macro influencers, each with advantages: micro influencers, despite fewer followers, typically have higher engagement rates; macro influencers offer massive reach. However, Robinson expects the strengths of both to merge in the emerging mid-tier category, which she defines as creators with 50,000 to 800,000 followers.

"We see many micro creators, who have smaller audiences but high engagement, gaining more followers and growing while maintaining that level of engagement," Robinson said.

As the landscape evolves, Fazal predicts that using follower count as the sole metric may fade from discussions, noting that follower count alone is not a strong success indicator compared to metrics like engagement. Additionally, as brands strive to build more diverse creator strategies—another executive's prediction—follower counts often skew toward creators from non-diverse backgrounds.

"I think we can officially declare that by 2024, using follower count to judge an influencer's potential success is outdated," Fazal said.

Fazal also expects greater diversity in content formats, noting that while short-form video is not expected to lose popularity, long-form content will see a revival as consumers show a desire for deeper insights and stronger connections. This is already common on leading platform TikTok, where viewers often request second and third parts under shorter videos, and TikTok has met this demand by adding a 10-minute video feature. For marketers, the opportunity to tell longer stories could make a difference, especially during the critical holiday marketing period.

"There's been a long-held belief that millennials and Gen Z especially can't focus, so we have to keep content short, but we've seen that bet fail time and again," Fazal said.

Nevertheless, short-form video remains a growing focus for platforms, especially TikTok, Instagram, and YouTube, with the latter two continuously adding new features and monetization tools to theirReelsandShortsproducts to counter TikTok. Social media ad spending is expected to increase in 2024, projected to account for$227.2 billion of total ad spending this year. This growth comes as e-commerce marketing remains strong, with social platforms often integrating well into marketers' customer acquisition and loyalty strategies.

Beyond the "big three" platforms for influencer content, as Fazal calls them, other platforms are also stepping up efforts to attract creators and advertisers. Snapchat recently began experimenting withcreator-led content series conceptsand addedsponsored linksto its generative AI chatbot My AI. Accordingly, East expects the platform may play a larger role in the creator space.

"Snapchat seems to be a hot topic because of the engagement and monetization opportunities they offer," East said.

Opportunities in Social Commerce and AI

As marketers finalize their creator plans this year, a key focus is the potential of social commerce. This interest stems from the recent launch of TikTok Shop in the U.S., and althoughresults have been lukewarm so far, brands have shown excitement. For some, it has already proven to be a significant opportunity—according to Adweek, beauty brand BK Beauty saw revenue more than double within three months of activating TikTok Shop.

"We've already seen many early signs of TikTok Shop's great success," Fazal said.

According to Insider Intelligence data, total U.S. social commerce sales are expected to grow steadily from $67 billion in 2023 toover $144 billion by 2027. More broadly, for brands using influencers, Briggs advises them to focus on the types of content social media users prefer, such as product unboxings and daily vlogs, which have proven successful in driving purchases. Specifically, Morning Consult data shows that53% of Gen Z have made a purchase after watching social 'review' videos, while unboxing and "get ready with me" (GRWM) videos drove 40% and 37% to purchase, respectively.

The seamless shopping experience touted by social commerce may raise the competitive stakes; according to 2023 Comscore data (shared with Marketing Dive), 46% of buyers expressed interest in one-stop shopping via social media. However, as experimentation in this space grows, Fazal urges marketers to adjust their expectations for social channels, not viewing them as a path to immediate purchase.

"A lot of times, people think of influencer marketing and compare or benchmark it against other advertising channels like paid ads, which are designed for first-touch conversion. But I suggest treating influencer marketing like TV ads or billboards—it takes multiple exposures to succeed," Fazal said.

Another consideration is how generative AI can serve the creator space. Fazal says the technology can provide efficiency for creators, especially by streamlining back-end tasks like planning and organization. Influencer-related companies, includingBillion Dollar BoyandGrin, have also joined the trend, launching services focused on the technology.

"I do think in 2024 we might see more of this influencer-plus-AI combination."

—Ellyn Briggs, Brand Analyst at Morning Consult

There's also the concept of virtual influencers, such asMiquela, who has partnered with brand Pacsun, and as AI helps computer-generated images become more realistic, such virtual figures may becomemore mainstream。

"These virtual figures, created using advanced AI technology, can offer brands novel and innovative ways to engage with audiences, especially in fashion, tech, and entertainment," said Alex Dahan, founder and global CEO of global creator marketing company Open Influence.

Nevertheless, while virtual influencers have advantages over real creators in some respects—such as being able to promote any product without qualms—the human element is crucial for building genuine connections. Morning Consult's analysis found that consumers' trust in influencer recommendations isfar higher than in AI recommendations, which may not be surprising.

"That said, I do think in 2024 we might see more of this influencer-plus-AI combination," Briggs added.

Similar to the broader application of AI, the question of AI's role in creator marketing remains unanswered. Robinson says that while creators can use the technology to handle mundane tasks, freeing up more time for creativity, creators who over-rely on AI may raise red flags among an already wary consumer base.

"Those who rely entirely on AI will be very obvious, and that will erode trust and authenticity, which in turn could make consumers even more skeptical," the executive said.