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YOUTUBE SHORTS WON INFLUENCER MARKETERS' ATTENTION IN 2023 WITH A 700% SPENDING
BOOST AS INVESTMENT IN SHORT-FORM CONTENT CLIMBED

Marta Biino
Jan 17, 2024, 2:15 PM GMT
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Angle down icon An icon in the shape of an angle pointing down. Rapper GloRilla
at the 2023 Coachella Valley Music & Arts Festival YouTube Shorts Content
Studio. Irvin Rivera/Getty Images for YouTube

THIS STORY IS AVAILABLE EXCLUSIVELY TO BUSINESS INSIDER SUBSCRIBERS. BECOME AN
INSIDER AND START READING NOW.

 * Influencer marketing drove 14% more value for brands in 2023 compared to
   2022, new data shows.
 * Brands are investing more in partnerships with creators, especially around
   short-form videos.
 * The data is based on an analysis of 2 million social-media posts by marketing
   platform CreatorIQ.

Marketers continued to invest in creators in 2023, with short-form videos on
TikTok, Instagram, and YouTube dominating.

This story is available exclusively to Business Insider subscribers. Become an
Insider and start reading now. Have an account? Log in.

The data comes from an analysis of 2 million social-media posts from 143,000
creators conducted by creator-marketing platform CreatorIQ, which works with
over 1,000 brands and agencies like Unilever and Red Bull.

Here are four key data points from the analysis:

 * Creator content drives more and more value for brands. The "earned-media
   value" that creator content provided brands in 2023 amounted to $62.3
   billion, up 14% from 2022. "Earned-media value," or EMV, is a metric used in
   influencer marketing to measure the success of an advertised piece of
   content. CreatorIQ uses a formula to measure it that includes a post's
   impressions, reach, and engagement.

 * Short-form video dominated. There was a 700% year-over-year increase in
   spending on branded partnerships with creators on YouTube shorts, a 113%
   increase on TikTok, and a 100% increase on Instagram reels.

 * Instagram was the preferred platform, with CreatorIQ brand clients sharing
   1.2 million posts and 600,000 stories on the app.

 * Brands are also experimenting more with other platforms like Twitch, which
   saw a 300% increase in branded partnerships year over year, and Snapchat,
   which saw a 242% increase.


MARKETERS ARE FINALLY PAYING ATTENTION TO SHORT-FORM CONTENT ON YOUTUBE

While TikTok and Instagram have been leading platforms for short-form branded
partnerships for several years, shorts on YouTube are newer (introduced in
mid-2021), and brands had been somewhat reluctant to invest heavily in it from
the get-go.

But the tide is shifting, CreatorIQ data shows. Brands are investing more in
short-form content on YouTube, and creators are starting to see returns.

"The number of sponsored shorts I've shared on my channel has dramatically
increased in the last six months," said Jade Beason, whose channel has about
160,000 subscribers.

Beason said most of her partnerships on shorts are bundled with a long-form
video ad. But she's also had brands request short-only ads as a cost-effective
alternative when their budgets were more limited.

And Alasdair Mann, whose channel Alementary has about 750,000 subscribers, said
the majority of his revenue as a creator now comes from sponsored shorts on
YouTube.

A variety of brands have invested in creator partnerships on YouTube shorts,
CreatorIQ data showed.

Food-and-beverage companies, ranging from energy drinks (like Logan Paul and
KSI's Prime) to fast food (Wendy's, McDonald's, Raising Cane's) were popular, as
were brands in the technology and automotive spaces, and pro sports, with the
NFL making a major YouTube shorts push.

Categories like beauty and fashion — brands like Milani, E.l.f., Nyx, Shein, and
Aritzia — also spent more on YouTube shorts.

"This shift reflects a broader movement toward short-form video across both
beauty and fashion and the social media landscape as a whole," Alexander Rawitz,
director of content marketing at CreatorIQ, told Business Insider. "While
long-form beauty and fashion tutorials remain a YouTube staple, their popularity
is waning as Gen Z prioritizes short-form video content."

According to CreatorIQ, brands typically invest in creators with over 1 million
subscribers, particularly channels with big names on YouTube and early adopters
of shorts. Like Mann and Beason, these creators tend to make YouTube their
primary platform to publish content.

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