Despite a shaky economy, investment in influencer marketing continues to rise, according to a recent report by Advertiser Perceptions.

Fifty-three percent of advertisers surveyed said they plan to increase influencer investment in 2023, according to the survey conducted in November about the state of the creator economy. Brands plan to shift dollars from legacy media like print and TV to social, the survey found. 

Advertisers cite connection with young audiences and strong content engagement as the top reasons influencer marketing has become such an attractive channel.

Last year 12% of digital ad budgets were spent on influencer marketing, according to the survey of 207 marketers and 125 influencers. 

“The expense of linear TV and multiple streaming subscriptions is driving more young audiences into free creator-generated video content on social and video platforms,” a surveyed marketer said.

Advertisers primarily work with influencers in the mid-tier, ranging between 50,000 to 500,000 followers and macro range of 500,000 to 1 million followers, as they “can reach wider audiences while still maintaining a personalized fandom experience,” an agency director said. While 45% of advertisers said they will prioritize influencers who include shoppable links. 

The report also found that short video posts and stories are the most lucrative content type for creators and the most popular medium for marketers. YouTube is the top digital platform used by creators and influencers as well as advertisers, the survey found, while creators are adopting TikTok more than advertisers at this point. 

“A platform having desirable audiences at scale is a top priority on both sides, but creators also care about a platform’s cultural relevance, while campaign outcomes and high-quality creator content are top considerations for advertisers,” the report said. 

The primary way creators earn income is through ad revenue from the platform on which they post content, followed by brand deals and partnerships.

But there are several challenges to influencer campaigns, including conflicts between an influencer’s vision and an advertiser’s interests. Advertisers also need more help matching with the right creators and assurances regarding brand safety and influencer fraud, according to the report. 

But Advertiser Perceptions expects creator marketing to grow in 2023, even into new mediums such as augmented reality, which two-thirds of advertisers are likely to use in campaigns going forward.