U.S. ad spend on creators to hit $37 billion in 2025

The creator economy continues to pull more advertising dollars, and the pace is now growing faster than most sectors across digital media. A new report from the Interactive Advertising Bureau projects that U.S. creator-economy ad spend will reach $37 billion in 2025. The IAB says this would represent a 26% increase from the previous year, which is roughly four times higher than the 5.7% growth expected across total media spending.

The data shows where budgets are moving and how brands are responding to the way people consume content. Creator marketing has expanded quickly in the past few years. According to the report, creator spending has more than doubled since 2021, climbing from $13.9 billion to $29.5 billion in 2024.

David Cohen, CEO of IAB, said, “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,” he added.

The growth reflects a wider industry trend where social video consumption and influencer-led formats continue to dominate attention, especially among younger audiences. The study also notes that nearly half of the surveyed advertisers now treat creators as a “must buy.” They place creators only behind social media and paid search when ranking core channels.

That shift shows how creator placements are no longer viewed as niche programs. They have moved to the center of media planning, and many brands now use creators alongside broader performance and awareness campaigns.

Awareness, reach, and trust still drive most creator budgets

Although the creator market is expanding, the reasons brands invest in creators remain steady. The IAB found that 43% of marketers name brand awareness as their top objective when working with creators. Reaching new audiences follows closely at 41%. Advertisers also use creators to improve brand reputation and trust, which 35% of respondents identified as a key goal. Micro-influencers have continued to gain traction among online users, who value authenticity and relatability, and the global influencer marketing spend is projected to reach $33 billion this year, a 36% increase from last year.

Online sales and conversions also appear in the top tier of goals, with 32% of brands listing them as a priority. This shows that creator marketing is not limited to the upper funnel. Many brands now connect creator content with call-to-action formats, landing pages, and product-led storytelling. The study states that 40% of buyers rank overall return on investment as their most important KPI, indicating growing pressure to link creator activity to measurable results.

Finding the right creators remains a major challenge for advertisers

Even with increasing adoption, many brands still face difficulty choosing the right creators. The IAB’s data shows that about one-third of marketers say creator selection is their biggest challenge. Since the space is fragmented across platforms and partnership models, marketers often struggle to evaluate credibility or audience fit at scale.

Creator reputation is the top selection factor for 58% of advertisers, while 56% prioritize audience alignment. These two criteria highlight how much weight brands place on trust and relevance. Zoe Soon, Vice President in IAB’s Experience Center, says the fragmentation makes discovery hard and pushes many brands to look for better tools that can assess creator suitability more consistently.

Measurement and reporting gaps continue to slow down investment

One of the most consistent concerns in the creator economy is measurement. Subscriber counts and view totals are visible to everyone, but advertisers want deeper metrics. The IAB points to engagement rates and campaign-level attribution as examples of data that marketers cannot easily access. Third-party companies track some of these signals, but brands say it is still difficult to tie creator activity directly to business outcomes.

This measurement gap affects budget decisions. As creator spend rises, advertisers are asking for clearer reporting frameworks that match what they expect in other digital channels. The IAB notes that buyers want standardized reporting, streamlined attribution, and operational tools that link performance to sales or conversions.

AI is entering creator workflows, but many advertisers still worry about its impact

Another trend emerging from the report is the rise of AI in creator marketing. Nearly three in four creator ad buyers say they are already using or plan to use AI in the coming year. The IAB found that advertisers mainly use AI for tasks like content editing, creator briefs, and content personalization. These are workflows that support creators rather than replace them.

Still, 95% of advertisers say they have concerns about relying too heavily on AI. The top issue is the potential loss of human connection, which is often why brands use creators in the first place. Marketers treat creators as messengers who bring cultural context, personality, and authenticity into brand communication. The IAB notes that these concerns shape how brands think about automation in content production and campaign management.

What this means for advertisers and marketers

The IAB findings give a clear signal that creator marketing continues to be a central part of the media mix. Budgets are growing, the channel covers both awareness and performance, and brands are exploring AI-driven tools to scale workflows. At the same time, advertisers still face friction points around discovery, credibility checks, and measurement. These issues influence how teams plan creator partnerships and how they justify spend internally.

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