Creator ads on social networks drive results across the entire funnel: study

Snapchat's latest report analyzes the impact that creator-brand partnerships have on shopping habits.

The creator economy is experiencing unprecedented growth, with global revenues anticipated to soar to $480 billion by 2027, according to Goldman Sachs. This surge is driven by the rapid expansion of the creator community and the diversification of revenue streams, including brand collaborations and advertising.

In partnership with OMG and Eye Square, Snapchat released a report that looks at the impact creators are making across the marketing funnel. The study focuses on marketing efforts on Snapchat, as well as TikTok, Instagram and YouTube.

The study was conducted among more than 12,000 social platform users (ages 13 to 49) from different generations in five markets (Canada, the U.S., the U.K., France and Saudi Arabia) using quantitative research methods, including in-context exposure to various ad sequences, a brand recognition survey and a simulated in-store shopping exercise, where consumers went to an online marketplace and had the opportunity to search for products and add them to their carts.

The report found that paid ads that are created in collaboration between a brand and a content creator are capturing attention more effectively on those social networks, compared to standard branded ads. Attention paid to a creator’s ads was 12% longer and play time was 8% longer. And when creator ads are combined with standard branded ads there is a greater impact in the upper funnel.

Snapchat, TikTok, Instagram and YouTube users also said creator reviews on those social networks are relevant during the consideration (71%) and purchase (70%) phases of their shopping journeys. Seeing a creator ad before a product-focused spot increased the number of consumers who searched for more information about the product and purchased the brand in an online marketplace by 6%.

But including creators in marketing strategies is also benefiting brands beyond just generating good results. According to the report, viewing a creator ad followed by a brand ad significantly increased ad recall and brand awareness by 59% and 48%, respectively. Creators are also improving reputation, with the majority of consumers saying that brands were more trusted when they saw a creator ad followed by a product ad, compared to when they only saw product ads.

On Snapchat, 68% of users said they have seen brand-sponsored content. Snapchat creators came across as likable, approachable, genuine, trustworthy and were more likely to feel like friends, than on other platforms, according to the report.