Analysis

Brands Ramp Up Creator Spending, Yet ROI Remains Elusive

83% of major brands boosted social and creator marketing budgets in two years, but 65% still can't prove returns, pressuring agencies as brands shift to specialists.

Daniel Marsh · · · 3 min read · 24 views
Brands Ramp Up Creator Spending, Yet ROI Remains Elusive
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A new report from Creativebrief reveals a significant shift in how major brands allocate their marketing budgets, with social and creator-led strategies taking center stage. The study, titled Social Sells 2.0, found that 83% of surveyed brand leaders increased their spending on social and creator marketing over the past two years. However, a persistent challenge remains: 65% of these brands are unable to demonstrate clear, measurable returns on their investment.

Social-First Strategy Gains Momentum

The research indicates that 58% of brand marketing leaders have either already adopted a social-first approach or are actively transitioning toward one. This marks a structural change in marketing priorities, moving social and creator activities from experimental side projects to core growth drivers. Charlie Carpenter, CEO of Creativebrief, described this as a "new phase of maturity" for social and creator marketing, where the debate has shifted from whether to invest to how to optimize the investment.

Agency Squeeze Intensifies

The report highlights growing pressure on traditional agencies. Only 15% of brand leaders now manage their social and creator campaigns through their current creative, media, or PR agencies. Carpenter noted that many creative agencies are "not doing a credible enough job" demonstrating their expertise in this space. As a result, brands are increasingly turning to specialized partners who can offer targeted skills and data-driven insights.

Measurement Challenges Persist

Despite the budget increases, measurement remains a critical bottleneck. The study found that 85% of brands are using social media for long-term brand building, yet 53% still rely on short-term metrics to gauge success. This mismatch creates risks, especially as changing algorithms, rising paid reach costs, and inconsistent creator content can erode returns. Creativebrief warns that brands may end up overpaying before measurement tools catch up.

Direct-to-Consumer Brands Lead the Charge

Direct-to-consumer (DTC) brands are particularly active in shifting budgets toward influencer and creator-led channels. According to an ABNewswire release, these brands face slipping organic reach and rising customer acquisition costs, driving them to platforms like TikTok and Instagram for product discovery. Specialist agencies such as House of Marketers, Y'all, and Kulin are emerging as key players in this space, with an emphasis on metrics like revenue, repeat purchase rates, and acquisition costs rather than vanity metrics like follower counts.

Market Trends Support the Shift

The broader market context reinforces these trends. The Interactive Advertising Bureau projects that U.S. creator ad spend will reach $37 billion in 2025, a 26% increase from the previous year—nearly four times the growth rate of the overall media industry. This surge underscores the growing importance of creator partnerships in brand strategies.

AI's Gradual Impact

Artificial intelligence is also playing a role, though its impact is still nascent. Khushboo Mulani, founder of Slay Media, noted that AI is reducing costs for repurposing long-form content into multiple formats such as videos, clips, newsletters, and blog posts. However, a Creativebrief survey found that 50% of brand leaders believe AI is only having a gradual effect on social and creator marketing work.

Looking Ahead

As brands continue to shift budgets, the need for robust measurement frameworks and specialized agency partnerships becomes paramount. The report suggests that social marketing must evolve from isolated posts to integrated systems that combine rolling content, defined creator roles, direct audience channels, and reporting that ties creative work to business outcomes. Agencies that fail to adapt risk losing clients to more focused specialists.

This article is for informational purposes only and does not constitute financial advice or a recommendation to buy or sell any security. Market data may be delayed. Always conduct your own research and consult a licensed financial advisor before making investment decisions.

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