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 social media influencers and 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 the way we advertise, but also the way we interact with brands as a whole.
“The creator economy is now a key element on the marketing chessboard,” says Joe GaglieseCEO of influencer agency Viral Nation. “The creator revolution 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 the shift has been happening over the course of two decades. In the early 2000s, faster internet connections and the rise of platforms like YouTube and Twitter allowed everyday users to reach mass audiences. 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, becoming a content creator required expensive photography equipment and editing tools,” he explains. Richard EdelmanCEO of global public relations agency Edelman. “Now, TikTok has democratized content creation, allowing anyone with a smartphone to become a creator.”
TikTok’s short-form, vertical videos have created a new format for fast, impactful content, and brands have quickly taken notice. 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 lockdown,” says Chawawa. “Brands have started to see the value in authenticity, humor, and connection, which is what creators like me bring to the table.”
Trust and authenticity drive the creator economy
The success of influencer marketing can largely be attributed to one key factor: trust. In an age where consumers are increasingly skeptical of traditional advertising, influencers provide a more authentic connection between brands and their audiences.
“Trust is everything,” says Edelman. “We’ve seen a decline in trust in big companies, but influencers have filled that gap. Consumers feel a personal connection with creators who align with their values, making influencer marketing much more effective than traditional methods.”
A 2019 study by Edelman found that while consumer trust in brands has declined, trust in influencers has increased. Consumers now look to influencers not just for product recommendations, but as trusted voices who share their values and lifestyle. “I trust an influencer because I feel closer to him than a faceless brand,” explains a consumer in the study. “I know their values are like mine.”
Brands are taking this insight to heart, especially in how they choose influencers for campaigns. “Children smell a mouse” says Chawawa. “They know when someone is inauthentic, which is why brands now understand the importance of working with influencers who align with their core values. It’s not just about numbers; it’s about fit.”
The Influence Economy: A Booming Creative Economy
The financial impact of influencer marketing is staggering. Goldman Sachs estimates that 50 million people worldwide now work as creators, and the creator economy is expected to be worth $528 billion by 2030. In the U.S. alone, TikTok’s economic impact is estimated to contribute $24 billion and create 225,000 jobs.
“The numbers speak for themselves” says Gagliese. “Influencers are no longer a sideline, they are businesses in their own right and brands see them as valued partners.”
Influencer pay varies widely depending on their reach and engagement. Micro-influencers, those with between 5,000 and 50,000 followers, might charge as little as $10 per post, while mega-influencers with millions of followers can charge more than $10,000 per post. Brands are willing to pay a premium for this type of access to an engaged and loyal audience.
“While working with influencers may seem expensive at first glance, the ROI is clear,” says Jamie Gutfreunda creator economy strategist. “Brands gain more than just reach: they gain credibility, trust, and the ability to engage with their target market in a more meaningful way.”
Challenges in the creator-brand relationship
Despite its growth, influencer marketing has its challenges. The process of identifying, negotiating, and collaborating with influencers can be time-consuming for brands. Traditional advertising agencies, accustomed to working with established media companies, struggle to navigate the influencer ecosystem.
“The advertising industry was not created to work with individuals like influencers,” explains Gutfreund. “Agencies are used to negotiating large deals with legal departments and established contracts. The creator economy is much more fluid, which can make it difficult for brands to execute at scale.”
Additionally, payment terms remain a significant issue. Many influencers, especially those working with agencies, are subject to payment terms that can extend up to 120 days after a campaign. “It’s a real challenge for creators who rely on this income,” says 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 creative economy continues to expand, brands are finding new ways to integrate influencers into their long-term strategies. “We believe that influencer marketing will become the most valuable media a brand can buy,” Gutfreund predicts. “It’s not just about an influencer posting a single post; it’s about building a lasting partnership that feels authentic to both the brand and the creator’s audience.”
Influencer marketing is also pushing brands to rethink how they interact with consumers. “Traditional advertising is about conveying a message,” says Edelman. “Influencer marketing is about having a conversation.” This shift is forcing brands to become more transparent, more local, and more recognizable.
As more and more influencers enter the industry, brands will have to be more selective when choosing partnerships. “The days of the Wild West of social media are over,” says Chawawa. “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 evolved 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 valuable than ever.
“Influencers have changed the game,” says Gagliese. “And they’re not going anywhere.”