Why CMOs Are Investing 50% of Paid Media in Creator Partnership Ads

It is no secret that Marketing is changing rapidly, and CMOs have to adapt to that. A few years ago, brands would spend most of their marketing budget on sponsorships and paid advertisements. Now, there is a significant trend. CMOs from all industries are embarking on a major realignment, with 30-50% of their paid media budgets being directed toward partnership ads, primarily those leveraging creators and user-generated content (UGC).

It is not a trend and is quickly becoming a long-term growth strategy for brands that want to achieve better results, improve engagement, and build audience trust.

What Are Partnership Ads? 

Partnership ads are advertising campaigns that are co-developed with content creators, influencers, or other brand collaborators. These campaigns feature the creators' voices and offer the precision targeting and scale of paid media.

Why Are They So Powerful?  

Compared to more traditional ads, partnership advertisements perform better, as they appear more human, relatable, and real. Trust is granted to creators more than traditional branded messaging, which is why and how these ads perform better.

The Key Reasons Behind Budget Reallocation  

1. Higher Engagement and Better Performance  

Ads created by creators do not come off as forceful and salesy. When users come across everyday posts, they are more likely to engage than when encountering overtly commercial content.  

Research shows partnership ads are linked to:  

• Higher click-through rates  
• Increased conversions  
• Improved retention  
• Enhanced brand recall  

This is why CMOs are reallocating around 50% of their paid budgets to creator-driven partnerships.

1. Greater Trust and Authenticity  

It's no secret that the modern consumer is distrustful when it comes to traditional advertising, as they prefer advertising recommendations that come across as genuine.

• Creators aid brands:  
• Trust was built faster  
• Emotional connection  
• Real product experience

This is an experience that traditional advertising, such as banner ads and display ads, cannot offer. 

1. Cost Efficiency and Better ROI  

Partnership ads are often more cost-effective than traditional advertising campaigns, which use large studio productions and engage various influencers. Brands are able to use a single creator video to run multiple ad variations, allowing for format testing and large audience outreach without the costs associated with high production.

• The results of this include\:
• More Effective Ads Spend 
• Lower Cost Per Acquisition 
• Greater returns across platforms 

When it comes to most CMOs trying to find ways to do more with less budget, partnership ads become a no-brainer.

1. Quicker Testing and Scaling

Creator content tends to have a quicker turnaround in terms of creation, editing, and testing. Thus, brands are able to more quickly iterate and learn what resonates and, to subsequently, scale those ads.

This ability to quickly adapt is a great edge to have because:

• Digital trends evolve quickly
• User behaviours shift
• New advertising formats are introduced

Because of this, partnership ads are a go-to, more than other advertising strategies, for CMOs.

1. UGC Is Outperforming Studio Ads

Digital platforms are being taken over by user-generated content. It works better and feels more genuine, useful, and relatable. 

CMOs are now recognizing that:

• UGC attracts attention more quickly 
• UGC is watched for longer periods of time
• UGC appears to be guidance rather than advertising  

More and more brands are investing in creator collaborations as opposed to costly traditional advertising, and for good reason.

1. Better Targeting Through Creator Whitelisting

Through partnership ads, brands can run creator content through the creator's handle with paid advertising tools. This helps brands to: 

• Enhance Ad Relevance 
• Build Credibility 
• Increase social proof 
• Reach more defined audiences 

This style of creator whitelisting has become one of the most efficient forms of advertising today.

Future of Advertising Is Collaborative

For the most part, CMOs now think that the future of advertising is built on collaboration rather than interruption.\n\n Unlike a marketing tactic, partnership ads are now a strategic underpinning of contemporary brands. The companies that adopt creator-led content today will be ahead of the competition in the digital world of tomorrow.

Conclusion

As brands continue shifting 30–50% of their paid budget toward partnership advertising, the demand for competent UGC creators and their associated platforms increases. Amplify is a dependable UGC creator marketplace that pairs brands with talented creators producing authentic, high-performing content.