Brands Will Focus More on Creators in 2024, LTK Reports

LTK, known for its Creator Commerce platform, released its findings from a brand survey—revealing insights into the biggest trends in creator marketing for 2024. 

Marketing budgets for creators are rising, as brands realize the impact creators have on purchasing decisions. Creators play a critical role in brand building across the entire marketing funnel, from awareness to consideration and conversion, the report finds. Creator investment is also growing at a remarkable rate, outpacing other digital channels.

“This study confirms that the creator economy is not just thriving—it's leading the charge in modern marketing, with brands witnessing tangible growth and a more profound consumer connection when they entrust creators,” said Rodney Mason, vice president and head of marketing, Brand Platform, at LTK.

LTK conducted the survey in partnership with Northwestern University’s Retail Analytics Council. It includes insights from top marketing decision makers at leading global brands. 

“Social media is dramatically changing the way brands and retailers interact with consumers. This study confirms that creators are increasingly important in driving superior customer engagement and social commerce, compared to more traditional digital marketing methods,” said Frank Mulhern, professor and director of the Retail Analytics Council, Northwestern University.

Survey Highlights

What is the creators' impact on sales?

On the LTK platform alone, creators reached $4 billion in annual retail sales among 30 million monthly users. 

"Creators are driving meaningful business impact like never before, and creator budgets are growing the quickest compared to other digital channels," LTK states. 

The report found that brands are focusing more on creators than other marketing channels.

• 80% of brands said they increased creator budgets in 2023
• 92% of brands stated influencer marketing will have higher budgets or an increased role in their marketing strategy in 2024
• 36% said they plan to spend at least half of their entire digital marketing budget on creators

When asked where their marketing dollars are shifting, creator marketing and connected TV shared the top position overall for investment growth, beating out channels like paid search and paid social.

LTK's survey also found that creators have built significant consumer trust with their shopping communities. 

The majority of surveyed brands say consumers trust creators the most compared to social media ads and celebrities.

What percentage of shoppers said they look to creators to make purchasing decisions?

• 73% of Gen Z
• 68% of Millennials
• 57% of the general population

Creators are also improving beauty brand perception. 

Brands and retailers are aligning themselves with creators, recognizing their unique ability to engage and influence consumers effectively. Creators have become a valuable asset for brands in driving immense business impact.

According to the study, brands look to creators to support multiple strategies:

• Increasing repeat purchases and basket
• Brand and Product Recognition
• Expanding consideration to new audiences
• Loyalty and Retention

With consumer trust in creators being a driving factor, more than half of fashion brands and 45% of beauty brands said that creators improved their brand perception.

Brands have built multifaceted creator programs, averaging 3.8 different goals for creator programs.

Brands report the top four most important goals for creators are:

• Generating content
• Driving loyalty
• Creating awareness
• Driving sales

Takeaway Tip: Invest in Creators 

Creator content is now more crucial than ever in the marketing mix—and with 98% of brands are using it for channels outside social media.

"Brands with winning creator strategies are investing in creators to maximize their impact across channels and focus their attention on full funnel impact by driving three key metrics - audience growth, awareness and sales," LTK states. 

Download the free study here at shopLTK.