Forget celebrity versus creator — it’s about the hybrid strategy in a $10B creator economy

Take the confluence that happened at the Super Bowl, where Alix Earle and Addison Rae have appeared in ads. It wouldn’t have happened 10 years ago, said Sarah Gerrish, senior director of influencer and creator marketing at creative agency Movers+Shaker.

“On the other hand, you likely wouldn’t see celebrities with #ad on their socials, because in order to partner with celebrities you would need to invest in 360-advertising campaigns with them,” Gerrish added.

That’s no longer the case today. Marketers want celebrities who understand the creator economy. They also want creators who will crossover into the world of true celebrity. Ultimately, brands are hoping for a hybrid personality.

The desired stars of today

Historically, brands view celebrities as individuals with high visibility and broad reach, people recognized from traditional media such as film, television or music, whereas content creators make content and have built a following around specific interests and communities.

Amy Cotteleer, partner and chief experience officer at agency Duncan Channon, used creator Earle as example of someone who started out making fashion and lifestyle content as a college student — and has now achieved fame. This is the new middle ground that brands want to strike with their creator marketing.

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“She’s now a celebrity in her own right, and arguably that influence and closeness to her audience is much less palpable than it was even a year or two ago,” Cotteleer said. “When brands look to select talent, there’s a sweet spot between influence and entertainment that is hard to pinpoint, but easy to miss.” Earle has brand deals with Carl’s Jr., SipMARGS and Gopuff.

Gerrish also used the example of actor Taylor Lautner: “He sort of stepped away from the acting world for a bit, but in that time he posted funny, relatable content that brands noticed — and has now built a platform and podcast that doesn’t revolve around acting. These shifts show that both sides are learning and adapting to the current landscape.” Lautner co-hosts the podcast “The Squeeze” with his wife Tay Lautner, and their show has featured episode sponsors from Cymbiotika to Hero Bread.

With celebrities and creators drawing from each other’s marketing and monetization tactics these days, the emerging hybrid creators will become more sought after by brands as they can engage on social media apps but also operate like celebrities to launch their own brands and star in movies. These partners are attracting star power “in their own right,” Gerrish said.

Understanding the creator economy is a must

While brands might partner with celebrities for operational efficiency (i.e., fewer contracts and shoots, compared to managing many individual influencers), the focus is shifting toward ensuring that this efficiency doesn’t compromise marketing impact, said Jennifer Quigley-Jones, CEO and founder of influencer agency Digital Voices.

The four agencies Digiday spoke to did not mention a specific number of requests to work with these hybrid individuals, but Lindsay Nead, CEO of talent agency Parker Management, recently told Digiday that the firm has turned away management inquiries from celebrities or creators with large followings because their social media followings did not meet their criteria. She declined to name names.

“Celebrity doesn’t pack the same punch as it once did with younger generations, who are seeing a much bigger divide between themselves and the entertainment elite,” Cotteleer said. “[They] are much less interested in celebrity endorsements online or offline than at any other time in the history of advertising with talent.”

Authentic partnerships and finding people to work with whose followings could convert sales is key, Gerrish said. “If a celebrity endorsement feels random or weird, it will likely gain eyeballs and start conversations but it will likely not lead to actual conversions,” said Gerrish. “I would never advise a smaller brand to invest the majority of their marketing dollars into a celebrity unless the partnership feels truly organic.”

That’s where a hybrid strategy is key, according to agency execs.

“Celebrity partnerships can play an important role when brands are looking for one recognizable global ambassador,” Quigley-Jones said. “However, to be effective these partnerships should be bolstered by many local influencers — who speak local languages, understand local cultural nuances and can make brands and products relevant to their audiences.”

Understanding the right metrics

This year, U.S. influencer marketing spending is expected to surpass $10 billion in 2025, but spending growth is expected to slow slightly this year due to a maturing market, TikTok’s unclear status and overall economic uncertainty, according to eMarketer. Major marketers continue to shift budget to creators. Unilever, one of the world’s largest advertisers, said last week it plans to invest half of its ad budget (some $8.5 billion globally in 2023, per Statista) on social media and work with 20 times more influencers, increasing social spending from 30% to 50% of its total ad dollars.

Regardless of who the partner is, marketers also have to prioritize cost efficiency, especially when brands have limited budgets and need to maximize those returns if they are going to compete with giants like Unilever. There’s no sense wasting investments chasing the big names that won’t deliver sales or backing an unknown creator that won’t drive enough awareness — regardless of the person’s level of fame.

Using a hybrid model might include celebrities, who are best suited for brand awareness and broad reach (especially for luxury or established brands) and potentially high-impact campaigns. Then creators, especially micro and mid-tier, are essential for targeted campaigns and specific demographics, authentic engagement, driving trust and achieving more effective ROI in terms of conversions, Gerrish explained.

Celebrity ROI is often measured in brand lift, impressions and overall brand awareness, not solely immediate sales. Their broad reach can generate high impressions across multiple regions, but creators are often seen as delivering better ROI in terms of engagement, trust and conversions.

For example, some 75.9% Instagram influencers fall into the nano category, with 1,000 to 10,000 followers, and were found to achieve an average engagement rate of 1.73% in 2024 — higher than macro influencers (500,000 to 1 million followers) with .61% average engagement rate and mega influencers (1 million or more followers) with .68%, according to Influencer Marketing Hub.

As Quigley-Jones noted, brands earn $5.78 in media value for every $1 spent on influencer marketing, with mid-tier and micro-creators delivering the best returns, per influencer platform CreatorIQ. “In fact, 35% of brands say mid-tier creators (with 100K-300K followers) provide the highest ROI, while only 19% say celebrities and mega influencers are the most effective,” Quigley-Jones added.

“Even when brands are partnering with celebrities, this should not be a substitute for creator partnerships,” Quigley-Jones said. “The strategies should compliment each other, as they build deep customer connections with scaled local creators for every campaign.”