Influencer marketing, once dismissed as a passing trend, has firmly established itself as a cornerstone of modern advertising. With the Cannes Lions advertising festival launching its first Creator program this year, dedicated entirely to influencers and social media content creators, it’s clear that the creator economy is here to stay. Brands, agencies, and even traditional media are grappling with this new reality as influencers change not only how we advertise, but how we interact with brands entirely.
“The creator economy is now an important piece on the marketing chessboard,” said Joe Gagliese, CEO of influencer talent agency Viral Nation. “The disruption caused by creators is reshaping the industry, and brands are increasingly realizing that influencers aren’t just a trend—they’re central to how marketing works today.”
A Two-Decade Evolution: From Viral Videos to Billion Dollar Brands
The rise of influencer marketing may seem like an overnight success, but change has been two decades in the making. In the early 2000s, faster internet connections and the advent of platforms like YouTube and Twitter allowed everyday users to reach a mass audience. While early influencers built loyal followings through blogs and viral videos, the creator economy exploded when TikTok made content creation more accessible than ever.
“In the early 2000s, being a content creator required expensive camera equipment and editing tools,” explains Richard Edelman, CEO of global PR firm Edelman. “Today, TikTok has democratized content creation, allowing anyone with a smartphone to become a creator.”
TikTok’s short-form and vertical videos created a new format for fast, impactful content, and quickly got noticed by brands. Today, creators like Munya Chawawa, who gained fame for his satirical news parodies during the pandemic, are the new faces of advertising. “I went from being a relatively unknown comedian to an influencer during the lockdown,” said Chawa. “Brands are starting to see the value in authenticity, humor, and connection, which is what creators like me bring.”
Trust and Authenticity Drive the Creator Economy
The success of influencer marketing can be attributed to one key factor: trust. In an era where consumers are increasingly skeptical of traditional advertising, influencers provide a more authentic connection between brands and their audiences.
“Trust is everything,” Edelman said. “We’ve seen a decline in trust in large corporations, but influencers fill that gap. Consumers feel a personal connection with creators who align with their values, making influencer marketing more effective than traditional method.”
A 2019 study by Edelman revealed that as consumer trust in brands decreases, trust in influencers increases. Consumers are now looking to influencers not just for product recommendations, but as trusted voices that share their values and lifestyle. “I trust an influencer because they are closer to me than a faceless brand,” explained one consumer in the study. “I know their values are the same as mine.”
Brands are taking this insight to heart, especially in how they select influencers for campaigns. “Children smell a rat,” said Chawa. “They know when someone is inauthentic, and that’s why brands now understand the importance of working with influencers who align with their core values. It’s not just about the numbers; it’s about in fit.”
The Economics of Influence: A Booming Creator Economy
The financial impact of influencer marketing is staggering. Goldman Sachs estimates that 50 million people worldwide are now working as creators, and the creator economy is expected to be worth $528 billion by 2030. In the US alone, TikTok’s economic impact is estimated to contribute $24 billion and create 225,000 jobs.
“The numbers speak for themselves,” Gagliese said. “Influencers are no longer a side hustle—they’re businesses in their own right, and brands see them as valuable partners.”
Compensation for influencers varies widely depending on their reach and engagement. Micro-influencers, those with between 5,000 to 50,000 followers, can charge as little as $10 per post, while mega-influencers with millions of followers can command upwards of $10,000 per post. Brands are willing to pay a premium for this type of access to engaged and loyal audiences.
“While working with influencers may seem expensive at first glance, the ROI is clear,” says Jamie Gutfreund, a creator economy strategist. “Brands gain more than reach; they gain credibility, trust, and the ability to engage with their target market in a more meaningful way.”
Creator-Brand Relationship Challenges
Despite its growth, influencer marketing has its challenges. The process of identifying, negotiating, and working with influencers can be time-consuming for brands. Traditional ad agencies, used to working with established media companies, find it difficult to navigate the influencer ecosystem.
“The advertising industry was not built to work with individuals like influencers,” explained Gutfreund. “Agencies are used to negotiating big deals with legal departments and established contracts. The creator economy is more fluid, which can be difficult for brands to execute at scale.”
In addition, payment terms remain a significant issue. Many influencers, especially those working in agencies, are subject to payment terms that can take up to 120 days after a campaign. “This is a real challenge for creators who rely on this income,” said Gutfreund. “Brands and agencies need to recognize that influencers are small businesses and should be paid accordingly.”
The Future of Advertising: More Human, More Personal
As the creator economy continues to expand, brands are finding new ways to integrate influencers into their long-term strategies. “We think influencer marketing will be the highest value media a brand can buy,” predicts Gutfreund. “It’s not just about an influencer posting once; it’s about building a long-term partnership that feels authentic to the brand and the creator’s audience.”
Influencer marketing is also forcing brands to rethink the way they interact with consumers. “Traditional advertising is about broadcasting a message,” Edelman said. “Influencer marketing is about having a conversation.” This change is forcing brands to be more transparent, more local, and more relatable.
As more influencers enter the space, brands need to be more selective about who they partner with. “The Wild West days of social media are over,” said Chawa. “Brands need to understand the space, build relationships with creators, and invest in authenticity if they want to succeed.”
Influencers are here to Stay
The rise of the creator economy has fundamentally changed advertising. What started as a grassroots movement on platforms like YouTube and Instagram has now grown into a billion dollar industry that touches every aspect of marketing. As brands embrace influencer marketing, they must adapt to a new set of rules—where trust, authenticity, and personal connection are more important than ever.
“Influencers have changed the game,” Gagliese said. “And they’re not going anywhere.”
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