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While some economies are in flux, the creator economy is going strong \u2014 specifically, spending on influencer marketing in the U.S. is projected to hit $10 billion<\/strong> in 2025, and it\u2019s estimated to reach $14 billion<\/strong> by 2027, according to Emarketer. With consumers increasingly turning to social media to find inspiration, influencer marketing is shifting away from simply getting products into celebrities\u2019 hands and instead focusing on authenticity \u2014 a shift driven by the 70%<\/strong> of consumers who value honesty and transparency when it comes to an influencer\u2019s relationship to a brand.<\/p>\n As retailers and brands look for lifestyle experts with grassroots followings, they\u2019re prioritizing community advocates that connect with their audiences<\/strong>. In some cases, notably at Dick\u2019s Sporting Goods<\/strong> and Ulta Beauty<\/strong>, some of those advocates are already on the retailer\u2019s payroll, combining their product knowledge with enthusiasm for creating content.<\/p>\n The socioeconomic instability of the past few years created a distrust of glossy celebrities who were paid to hawk a product they\u2019d clearly never use \u2013 i.e., no multimillionaire achieved their blindingly white smile solely from a blue light mouthpiece. Overt advertisements \u2013 such as claiming a pill, rather than layers of extensions, gave the Kardashians their thick hair \u2013 that are transparently pay-to-play are quickly scrolled past in favor of real user-generated content, not overly polished or branded posts.<\/p>\n Consumers have increasingly sought out authentic content creators who actually knew about the item they were promoting and already had footholds in their niche communities. And alongside this shift in trust, social platforms themselves were making it easier for smaller creators to monetize their content and followings.<\/p>\n Max Willens, a Senior Analyst at Emarketer, explained in an interview with Retail TouchPoints<\/em> that when TikTok<\/strong> took off several years ago, creators amassed gigantic followings in what felt like the blink of an eye, which caused advertisers to obsess over working with people who suddenly had follower counts in the tens and hundreds of millions<\/strong>.<\/p>\n But then the algorithm changed. Willens explained that over the past couple of years, platforms have shifted their formulas to engage consumers in content created by people they don\u2019t follow, while also making the creator economy more accessible to those with smaller followings. Specifically, he pointed to TikTok dropping the follower count needed for creators to start gaining commissions<\/strong>.<\/p>\n \u201cToday\u2019s creator economy is all about authenticity and first-person storytelling,\u201d said Mark Rooks, VP of Creative, Sponsorship, and Entertainment at Dick\u2019s Sporting Goods in an interview with Retail TouchPoints<\/em>. \u201cWhat was once centered on follower count and reach has now moved towards meaningful engagement and genuine connection with one\u2019s online community.\u201d<\/p>\n The changes in consumer preferences and social media algorithms \u201crebalanced the scale and renewed the focus on micro, or nano, influencers,\u201d Willens said. These creators are unlikely to be household names; instead, they are highly passionate individuals who are knowledgeable about a specific niche or interest.<\/p>\n \u201cThe best creator partnerships are the ones where there\u2019s genuine enthusiasm for the product,\u201d said Willens. \u201cThose partnerships can drive results up and down the marketing funnel in a way that not a lot of other media partners can do comparably<\/strong>. And to do that in a time when younger consumers are spending tons of their time online, it\u2019s easy to see why CMOs have gotten obsessed with figuring out how to execute creator partnerships, because the potential upside is enormous.\u201d<\/p>\n While Willens admitted that those perfect partnerships aren\u2019t easy to find, manufacture and scale, the potential power and reach that microinfluencers wield is invaluable. And for many retailers, the search starts in-house to find the best community advocates who already have footholds in their respective spaces.<\/p>\n \u201cThere\u2019s an interesting trend from the retailer side where they\u2019re taking their in-house talent and turning them into influencers, which is shrewd,\u201d said Willens. \u201cIf you can build the expertise and infrastructure needed to coach them up on the content creation component, then it\u2019s a valuable, strategic pursuit.\u201d<\/p>\n Take Ulta and its Ulta Beauties, for example. With a workforce full of glamorous skincare, hair care, and makeup enthusiasts who already make social media content, the company is elevating those voices to promote products and the business overall.<\/p>\n Dick\u2019s Sporting Goods also is capitalizing on the power of its internal advocates by turning its employees into nano-influencers. The sporting goods retailer introduced its Varsity Team in 2023 as an internal program for its employees, but the popularity of the program expanded into a creator economy that invited sports- and social media-obsessed consumers to apply.<\/p>\n \u201cWith the Dick\u2019s Varsity Team, we are looking to find those who sit at that intersection of athlete and content creator,\u201d said Rooks. \u201cBy doing so, we can stay true to the Dick\u2019s brand while also tapping into the growing consumer demand for authentic, first-person content. We\u2019re committed to connecting with creators who inspire their communities through sports and storytelling, while staying ahead of trends and embracing the power of user-generated content alongside our branded campaigns.\u201d<\/p>\n One of the snags of influencer marketing is determining its success: With most creator campaigns existing outside the company itself, businesses lose the ability to easily track concrete metrics such as click-through rates or to conduct A\/B tests. But by its nature, influencer marketing requires a mix of direct and indirect interactions to determine its success.<\/p>\n Boardrooms, obviously, want numbers to determine the success of efforts, so brands are focusing on collaborating with their influencer partners to equip them with the resources needed to execute successful campaigns. For Dick\u2019s, this means ensuring its influencer program sets itself apart from others in the industry by offering its creators more than just a brand partnership.<\/p>\n \u201cThe Dick\u2019s Varsity Team is about empowering passionate creators with the tools, mentorship and paid opportunities they need to turn their passion for sports and storytelling into something bigger,\u201d explained Rooks. \u201cWe want the impact, learnings and mentorship of the program to really help the creators develop.\u201d<\/p>\n From a measurement and success standpoint, Rooks noted that Dick\u2019s is focused on how its Varsity Team drives positive conversations and connects authentically with its followers. Currently, the Varsity Team is \u201cexceeding expectations,\u201d as it helped create more than 2,500<\/strong> pieces of social content, generated more than 40 million<\/strong> impressions, and was featured in more than 20<\/strong> campaigns for both Dick\u2019s and national brands like Adidas, New Balance, On <\/strong>and Hoka<\/strong>.<\/p>\n In an article focused on the power of authenticity, bringing AI into the conversation might seem antithetical. But the truth is that around 80%<\/strong> of influencers use AI to augment some part of their workflows, which naturally bleeds over into their content creation: 29%<\/strong> of TikTok creators admit that they regularly use AI. However, in the influencer space, AI isn\u2019t used to create completely artificial experiences or computer-generated avatars; instead, savvy creators are tapping into the technology\u2019s ability to spark creative ideation and provide insights into how to scale content and campaigns.<\/p>\n \u201cCreators lean on generative AI chatbots to inspire content and conduct research, while brands use it to identify and vet potential creator partners for brands,\u201d said Willens. \u201cGenerative AI has made it easier for brands to pursue a strategy that\u2019s focused on lots of smaller creators versus one or two highly sought-after, probably quite expensive, more temperamental creators.\u201d<\/p>\n Willens continued that there is \u201ca ton\u201d of experimentation in and around the creator economy regarding AI, with companies incorporating AI into everything from customer-facing chatbots that engage with fan comments to helping creators refine content strategies. As with most current applications of AI, it\u2019s being used to augment campaigns, not create and power them.<\/p>\n<\/p><\/div>\nThe Factors Behind the Shift to Authenticity<\/strong><\/h3>\n
Forging Partnerships with Relatable Content Creators<\/strong><\/h3>\n
Elevating Employees into Trusted Brand Advocates<\/strong><\/h3>\n
Setting Influencers up for Success<\/strong><\/h3>\n
How AI Will (or Won\u2019t) Impact Influencer Partnerships<\/strong><\/h3>\n