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Big Brands Boost Creator Spending, but Smaller Firms Dominate the Deals

Brands are shifting more ad dollars toward social-media creators, boosting revenue opportunities for social platforms (including Meta) but creating mixed outcomes for creators and marketers. U.S. advertiser spending on sponsored creator posts is forecast at $43.9 billion this year (up from $37.1 billion), but growth is decelerating vs prior years. Measurement and budget constraints mean big marketers often favor short, one-off deals and rely on a small set of trusted creators, while smaller and direct-to-consumer firms still account for the vast majority of creator sponsorships. Platforms and ad-tech (e.g., Google/YouTube’s tools) are positioning to capture more of this spend, suggesting ongoing benefit to social ad revenue for major tech platforms even as fragmentation and ROI measurement keep some brands cautious.

Category

Meta Platforms

Sentiment

Mixed

Event

Market commentary

Reading time

1 min