Why Ad Tech Might Finally Get a Piece of That Creator $

May 21, 2025

Conor McKenna, a partner at Luma Partners, dives into the challenges ad tech faces in tapping into the lucrative creator economy. He discusses the significant gap between creator engagement and advertising spend, spotlighting the evolving dynamics among platforms like YouTube and TikTok. Creators are gaining leverage, transforming into cross-platform marketers and navigating monetization complexities. The impact of AI and third-party tools in enhancing collaboration between creators and brands is also explored, signaling potential new directions for ad tech.

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INSIGHT

Creators Power Media Convergence

There's a huge gap between time spent with creator content and advertising spend in that space.
Major platforms are converging around video formats with creators at the core, increasing creator importance.

INSIGHT

Creators Gain Cross-Platform Power

Mega-creators distribute content across platforms, lessening platform control.
Creators act as cross-platform marketers funneling audiences to podcasts, Substack, and merchandise.

INSIGHT

Scaling Creator Ads Is Tough

Brands see creator content as authentic and valuable but find scaling difficult.
Measuring ROI and integrating creator spend into broader channel strategies remains challenging.

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Next in Media spoke with Conor McKenna, partner at Luma Partners, about what's held ad tech back from exploiting the creator economy, and why creators themselves - along with a new competitive dynamic among the tech platforms - may lead the industry in a whole new direction.

💡Takeaways:

Creator Economy's Spending Gap 🤯: Despite excitement and increased brand activity, there's a significant gap between time spent with creator content and advertising spend in that area.
Media Consumption Convergence 📺📱: Major platforms like Spotify, Meta, YouTube, and CTV are increasingly converging around video formats and distribution, with creators at the core. YouTube is a prime example, competing with both TikTok (YouTube Shorts) and traditional TV (YouTube app on smart TVs).
Shifting Platform Dynamics 💪: Creators, especially mega-creators, are gaining more leverage over platforms as platforms compete for their presence. This reduces the ability of platforms to control creators as much as they once did.
Creators as Cross-Platform Marketers 🌐: Creators are strategically moving their audiences across different platforms and monetizing them in various ways, using short-form content as a top-of-funnel strategy to drive engagement on other channels like podcasts or Substack.
Challenges in Creator Ad Buying ⚖️: Buying creator content at scale is difficult due to workflow complexities, the need for authenticity, and challenges in measuring ROI compared to traditional ad channels.
AI's Role in Creator Measurement 🤖: AI is expected to create more opportunities to measure creator spend in unique ways, such as tying it to user acquisition costs or understanding content context for better value.
Evolution of Creator Monetization 💰: Creators are increasingly demanding a larger share of monetization directly, rather than relying solely on platform payouts, which could drive demand for new tools and technologies.
Brands Driving Change 📈: Major brands like Unilever are significantly increasing their investment in social and creator content, pushing the industry to figure out better measurement and integration for these channels.

🎙 Guest: Conor McKenna
🎤 Host: Mike Shields
📺 Sponsor: VuePlanner
🎬 Producer: FEL Creative