How authenticity drives Australia's $800 million creator economy

By Ryan Ferguson and Kara Manatt

Australian brands are embracing the creator economy, with influencer-led marketing spend rising by 13 percent to hit approximately $800 million in 2025. Once considered a fringe, niche activity, influencer marketing has become a key strategic pillar of major campaigns, as marketers recognise its impact on brand awareness, consideration, purchase decisions and trust.

Goldman Sachs estimates the global creator economy could be worth almost half a trillion US dollars by 2027, as more consumers familiarise themselves with social commerce. But while digital platforms have become the go-to places for content creators to connect with their audience, there’s much to uncover about how consumers perceive creators and their sponsored content.

Snap Inc. and MAGNA, the media investment and intelligence agency within IPG, worked together to uncover consumer perceptions and preferences about creator content and to identify best practices for creator marketing. Research surveyed about 5000 weekly platform users across generations (16-49 year-olds) in five markets (USA, UK, Saudi Arabia, France and Australia) using quantitative methods.

The findings provided insight into people’s receptiveness to sponsored creator content, offering tips on how to best work with brands to have the greatest impact.

The creator opportunity

The research shed light on the role creators play in the consumer marketing journey. The majority of Australian digital audiences are on social platforms for creators, with 61 percent stating they use social platforms to follow a creator they like. And they’re watching creator-led product review content (41 percent) and tutorials (38 percent), making creators a natural asset for brands. The majority of Australians surveyed (88 percent) say they’re open to seeing brand-sponsored content from creators and this is true across generations, presenting a huge opportunity for brands.

As consumers become familiar with creator content, the study revealed they also have certain expectations and preferences for the content, especially when creators and brands collaborate on sponsored content. These expectations help inform the guidelines for brands when they think about creator-sponsored content.

While it’s encouraging to see such enthusiasm for creator brand content, there are a number of key considerations brands must make to capitalise on this trend. Using the Australian findings from the report, here are four rules brands should keep in mind when planning and executing creator campaign strategies.

Rule #1: Take action to build trust

Australians say they’re more likely to trust creators when they share mistakes and lessons learned (56 percent), portray a realistic life (54 percent), and incorporate evidence and facts into content (50 percent).

While creator trust is strongest in industries like skincare and apparel, it’s lower in highly regulated industries like finance, where 48 percent of Australians say they trust brands over creators. Brands in these verticals may want to consider particularly transparent collaborations, working to build awareness of the close relationship between brand and creator. 

Rule #2: Transparency is a must

The expectation for transparency is universal, with 92 percent of Australians reporting it’s important that creators inform viewers their content is being sponsored by a brand. This is the highest response out of surveyed countries, followed by the UK (91 percent).

Brands are required to clearly label social media advertising content to comply with the Australian Association of National Advertisers Code of Ethics and may face penalties for non-disclosure under Australian consumer law. But more than a regulatory requirement, being clear and upfront about sponsorships creates trust. Our research shows 66 percent of Australian consumers place more trust in creators and 62 percent are more likely to engage with brands when disclosures are made.

While there are many ways in which sponsorship disclosures can be made clear, Australians prefer to learn about brand sponsorships in creator voiceovers, followed by hashtags and watermarks.

Rule #3: Choose authenticity, honesty and knowledge

Brands have a lot to consider when choosing creators for partnerships. The research provides guidance to brands looking to identify creators for collaboration by pinpointing the most important content creator traits for driving engagement.

Australians rank honesty (61 percent), authenticity (57 percent), and knowledge (57 percent) as the top drivers of engagement with brand-sponsored posts. Interestingly, these creator traits are significantly more important than other seemingly compelling creator traits like charisma (33 percent), empathy (38 percent), and humour (43 percent).

The top three ways creators can demonstrate authenticity to Australian audiences include sharing personal experiences (60 percent), taking tangible actions to show facts and evidence within their content (59 percent), and admitting when they make mistakes (57 percent). Brands should prioritise collaborations with creators who naturally weave these elements into their content. 

Creators are becoming one of the major reasons why consumers spend time on various platforms. As consumers’ receptivity to creators continues to grow, brands need to not only incorporate creators as part of their marketing strategy, but also develop guiding principles on how best to leverage them.

Ryan Ferguson is the managing director of Snap Inc for ANZ. Kara Manatt is the EVP, Intelligence Solutions, at MAGNA Global.