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.
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.
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.
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:
This is why CMOs are reallocating around 50% of their paid budgets to creator-driven partnerships.
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.
This is an experience that traditional advertising, such as banner ads and display ads, cannot offer.
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.
When it comes to most CMOs trying to find ways to do more with less budget, partnership ads become a no-brainer.
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:
Because of this, partnership ads are a go-to, more than other advertising strategies, for CMOs.
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:
More and more brands are investing in creator collaborations as opposed to costly traditional advertising, and for good reason.
Through partnership ads, brands can run creator content through the creator's handle with paid advertising tools. This helps brands to:
This style of creator whitelisting has become one of the most efficient forms of advertising today.
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.
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.