U.S. creator economy ad spend set to hit $37b in 2025, report

The Interactive Advertising Bureau reports that investment in the U.S. creator economy continues to accelerate, with spending more than doubling since 2021. Brands are increasingly treating creators as a distinct media channel, reshaping the way they plan and measure campaigns.

The 2025 Creator Economy Ad Spend & Strategy Report estimates that creator-focused investment will reach 37 billion dollars in 2025, a year-over-year increase of 26 percent. Creator advertising is expanding about four times faster than the broader media market, according to IAB’s 2025 Outlook Study. Nearly half of advertisers now consider creators a must-buy channel, ranking just behind social media and paid search.

David Cohen, CEO: "Leveraging the creator economy to connect with audiences is no longer experimental for marketers — it's essential. 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."

Creators Drive Outcomes Across the Funnel

The report highlights that creator campaigns are supporting a wide mix of objectives. While brand awareness and reach remain primary goals, sales and conversions are rising in priority. Advertisers most often seek to build awareness (43 percent), reach new audiences (41 percent), strengthen brand reputation (35 percent), and drive online sales (32 percent). Four in ten buyers rank overall ROI as their leading KPI.

Chris Bruderle, Vice President, Industry Insights & Content Strategy, IAB: "Creators are unmatched when it comes to storytelling and cultural relevance — however, brands are also seeing them as performance drivers when integrated strategically. Creator marketing isn't just about awareness — it's proving its value across the full funnel."

Brands Prioritise Reputation and Audience Alignment

Despite the momentum, brands face ongoing challenges when selecting creators. A third say finding the right partners is their biggest hurdle. Reputation (58 percent) and audience alignment (56 percent) are the top selection criteria, underscoring the importance of credibility.

Zoe Soon, Vice President, Experience Center, IAB: "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. 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."

AI Adoption Grows, but Concerns Remain

Marketers are also turning to artificial intelligence to streamline operations. Nearly three in four advertisers already use or plan to use AI in creator initiatives over the next year. Current applications focus on efficiency and content refinement, including editing (49 percent), creator briefs (46 percent), and personalization (45 percent). Yet concerns persist; 95 percent of advertisers note apprehension about AI’s role, particularly the risk of losing human connection — the core driver of creator marketing’s appeal.

Industry Calls for Stronger Standards and Measurement

The report identifies measurement, standardisation, and transparency as the most urgent areas for improvement. Brands are seeking clearer attribution, consistent reporting, better discovery and vetting tools, and standards addressing audience authentication and fraud prevention.

Soon: "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."

The full report can be accessed here

www.iab.com

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