IAB research finds seven ‘opportunity areas’ for marketers, which could slow growth in the creator economy.
The Interactive Advertising Bureau (IAB) has released research outlining opportunities for the creator economy to protect itself against slowing growth and at the same time standardise performance metrics.
The study aims to create a shared set of expectations among buyers, sellers, and tech partners to encourage them to compete and innovate “on a common foundation”.
The most critical area for the industry, the research stated, is in fixing and standardising the measurements used. Two-thirds (67%) of those polled named measurement as their top issue, with a common definition of a “view” being the most requested definition to standardise.
It comes as many marketers question whether the current measurement and attribution models across performance marketing have become redundant.
Also highlighted were model contract clauses with usage rights identified as a top cause of friction (61%).
Around three-fifths (60%) said payment terms were also causing harm. As a result, the IAB is urging the industry to consider the upside of prompt payment terms.
The study also found that decision-makers (94%) are reporting occasional conflicts with senior leadership over creator decisions, particularly in budget allocation. More than half (58%) reported performance data being withheld, which limits the ability to learn.
Most respondents agreed (80%) that creator and media buyers work independently, which limits the effectiveness of creator campaigns. The research suggested marketers should prioritise optimal brand operating models.
The IAB identified a lack of transparency in fee disclosure, with 74% agreeing that although there is some benefit to the opacity, buyers must lead the industry on this.
James Douglas, vice president of the Experience Center, IAB said: “Creator marketing has largely won the argument about whether it belongs in the marketing plan. What it needs now is the infrastructure to scale. The people closest to this work told us where the friction is, and more than half said they would help build the solutions.”
Defining core metrics
From the study, the IAB is looking to build a creator advisory body that can standardise core metrics and work with its Experience Center’s 2027 roadmap.
As part of that, it will prioritise defining core metrics across different platforms such as views, impressions, reach and watch time by working alongside the Media Rating Council (MRC) and other industry bodies.
The IAB hopes this could lay the foundations for more consistent reporting, giving brands, agencies and creators and better way to evaluate content and performance across platforms.
David Cohen, chief executive of the IAB, added: “The creator economy has grown up faster than the infrastructure to support it, and the window to act is now, while demand is strong and the industry is willing.
“If we wait, the same friction points will get set in stone and undoubtedly inhibit future growth.”
