Creator content comes into play, not just for YouTube

Among the live sports and entertainment shows this week that featured media companies’ pitches to advertisers, another argument kept popping up: content from creators.

The category of videos, which can accumulate millions of views on Google YouTube and other social media platforms are increasingly sharing the stage with traditional Hollywood offerings in annual presentations known as “upfronts.”

Creator content already represents a significant portion of advertiser revenue. By 2025, advertiser spending on this genre will reach $37 billion, according to a recent report from the Interactive Advertising Bureau. This year, it is expected to reach $44 billion, according to the report.

“These are the storytellers, trendsetters and stars of this generation, producing the most relevant and engaging programming on the planet,” said Brian Albert, general manager of YouTube Solutions. “And advertisers have recognized that they not only have large audiences, but also communities that trust them. That’s why they want to partner with them now, more than ever.”

The shift to streaming on traditional television has led to sports, particularly the NFL, as well as live events attracting the highest advertising rates – especially when media companies pay high premiums for live rights.

However, with streaming, advertisers get more bang for their buck, industry executives told CNBC. This is true whether it’s a sporting event simulcast on streaming platforms or exclusive rights to video podcasts or children’s programs like “Mrs. Rachel.”

These economic factors, combined with the need to capture an elusive younger audience, are driving demand for ad-supported inventory and opening the door to more creator-led content on traditional platforms.

YouTube claims the largest streaming audience share, according to monthly Nielsen reports known as “The Gauge.” In February, the platform accounted for 12.7% of the streaming audience, with Netflix coming in second with 8.4%.

The company presented its pitch to advertisers — what it calls its Brandcast — on Wednesday, featuring the likes of YouTuber Jesse “Jesser” Riedel, comedian Trevor Noah and podcast host Alex Cooper.

Although digital stars are commonplace on YouTube, this year they have played a bigger role even at traditional media and streaming companies. Discovery of Warner Bros., Fox Corp. And from Amazon Prime Video was among the companies that noted the integration of content from creators on their platforms.

“Where there used to be a clear difference between studio-led content and creator-made content, it’s merging into a single vision,” said Julie Clark, longtime advertising industry executive and senior vice president of media and entertainment at TransUnion.

“If you look at the rise of things like long-form video podcasts and quick tutorials, you understand that the content landscape has changed dramatically,” she added. “This absolutely changes the way advances are viewed and enabled.”

Last year, it was video podcasts that made their way into more preliminary stages – an early indicator that viral online content was joining the traditional fray.

“The landscape has changed so much over the past year. Podcasting is now 360, meaning you’re watching some of your content in long form on video platforms, and a lot of people are starting to consume more short and medium form on social platforms,” ​​said Angie More, head of creator advertising partnerships at Amazon.

“We find that creators want to take advantage of reaching their audiences everywhere,” More said.

Amazon’s Prime Video once again highlighted a major video podcast deal during its presentation this week. Oprah Winfrey took the stage to promote her recent multi-year deal with the company to distribute “The Oprah Podcast” on audio and video. The deal also includes rights to a library of its past content.

For companies like Fox and Warner Bros. Discovery, which has a long history of studio-created content, has begun to rely on creator content through personalities who are already mainstays of their platforms, particularly those in unscripted shows about food and home improvement.

WBD has worked with creators and influencers for years, Karen Bronzo, global marketing director for U.S. networks and news at WBD, said in an interview.

Bronzo noted that this type of programming is now a more prominent part of conversations among media companies and advertisers. She said working with online personalities allows traditional networks to expand their reach and allows marketers to tap into large fan bases, who often pay close attention to their favorite personalities and brands.

“When you experience a creator’s content, you feel like it’s personal. It’s a much more individual relationship and a different type of connection,” Bronzo said.

During WBD’s upfront presentation Wednesday, Bronzo said the company’s programming for The Food Network is expanding further into YouTube originals, with a new series featuring chef Esther Choi coming to the network’s social media channel. Besides The Food Network, HGTV’s home improvement series and the “Puppy Bowl” — the annual dog show adjacent to the Super Bowl — are ripe for generating such content.

Fox has also found an entry point into the creator ecosystem through food. Earlier this year, the company launched Fox Creator Studios, with a focus on food content. The effort is led by chefs already on Fox’s roster, including Gordon Ramsay.

Ramsay took the stage at Fox’s initial pitch Monday, alongside NFL legend Tom Brady and stars of network entertainment shows, to tout his series on Fox and Creator Studios.

Fox has focused much of its streaming efforts on its free, ad-supported service, Tubi, which has signed deals with YouTube personalities to create content specifically for the streamer. In turn, these creators bring their followers from the social media platform.

Tubi has notably attracted Gen Z audiences, a key demographic for advertisers looking to reach younger consumers who don’t connect with traditional media as often. The Fox-owned streamer also launched Tubi for Creators and is looking to offer creators a path to Hollywood, CNBC previously reported.

Tubi held its own presentation for advertisers in late March, bringing creators including YouTube’s Jesser to the stage.

The platform has since announced various creator-led partnerships, including an exclusive football-focused series led by Jesser that premiered on Friday.