Not only YouTube, but also content from creators will be on stage

Amid the live sports and entertainment shows presenting media companies to advertisers this week, another pitch: content from creators, cropped up.

Categories of videos that can collect millions of views Google YouTube and other social media platforms are increasingly sharing the stage with traditional Hollywood productions during annual presentations known as “upfronts.”

Creator content already accounts for the majority of advertisers’ dollars. According to a recent report from the Interactive Advertising Bureau, advertiser spending on this genre will reach $37 billion in 2025. It is expected to reach $44 billion this year, according to the report.

“They are the storytellers, tastemakers and stars of this generation, creating some of the most relevant and engaging programming on the planet,” said Brian Albert, managing director of YouTube Solutions. “And advertisers know they don’t just have a large audience, they have a community that trusts them. That’s why they want to partner with them now more than ever.”

With the shift to streaming over traditional television, sports, especially the NFL and live events, now attract the highest ad rates, especially when media companies pay high premiums for live broadcast rights.

But streaming allows advertisers to make more money, industry executives told CNBC. This is true whether it’s simulcast sporting events on streaming platforms, video podcasts or exclusive rights to children’s programming like “Ms. Rachel.”

These economics, combined with the need to capture an elusive younger audience, are driving demand for ad-supported inventory and opening the door to more creator-driven content on traditional platforms.

Nielsen’s monthly report, known as “The Gauge,” claims YouTube has the largest share of streaming viewers. As of February, the platform accounted for 12.7% of streaming viewers, with Netflix in second place with 8.4%.

The company hosted an advertiser pitch (what it calls BrandCast) on Wednesday, featuring personalities such as YouTuber Jesse “Jesser” Riedel, comedian Trevor Noah and podcast host Alex Cooper.

Digital stars are common in the YouTube realm, but this year they’ve also played a bigger role in traditional media and streaming companies. warner bros discovery, fox company and Amazon’s Prime Video is one of the companies that has focused on integrating creator content on its platform.

“What used to be a clear distinction between studio-driven content and creator content is merging into a single view,” said Julie Clark, a longtime advertising executive and senior vice president of media and entertainment at TransUnion.

“The rise of everything from long-form video podcasts to quick-fix tutorials and more shows that the content landscape is changing dramatically,” she added. “This is completely changing the way upfronts are considered and enabled.”

Last year, video podcasts moved to a more front-line stage. This was an early indicator that viral online content was joining the traditional fray.

“Things have changed a lot over the past year. Podcasting is now almost 360 degrees, meaning some of the content is viewed in long form on video platforms, but then many people are consuming more short-form and medium-length content on social platforms,” ​​said Angie More, head of creator advertising partnerships at Amazon.

“We’re seeing that creators want to take advantage of the ability to reach audiences everywhere,” More said.

Amazon’s Prime Video reiterated its big video podcast deal in a presentation this week. Oprah Winfrey took to the stage to promote the company’s recent multi-year agreement to distribute “The Oprah Podcast” in both audio and video. The deal also includes rights to her library of historical content.

Companies like Fox and Warner Bros. Discovery, which have a long history of studio-produced content, are already starting to lean into creator content through the mainstay personalities on their platforms, particularly those appearing on unscripted food shows and home improvement shows.

Karen Bronzo, WBD’s chief global marketing officer for U.S. networks and news, said in an interview that WBD has been working with creators and influencers for years.

Bronzo noted that this type of programming is a big part of the conversation for media companies and advertisers. She said that working with online personalities can expand the reach of traditional networks, allowing marketers to tap into the vast fan bases that pay close attention to their favorite personalities and brands.

“When you’re experiencing a creator’s content, it feels personal. It’s much more of a one-on-one relationship, a different kind of connection,” Bronzo said.

During WBD’s upfront presentation on Wednesday, Bronzo said the company’s Food Network lineup is further expanding into YouTube originals, with a new series featuring chef Esther Choi coming to the network’s social media channels. In addition to the Food Network, HGTV’s Home Improvement series and “Puppy Bowl,” the annual dog show adjacent to the Super Bowl, are also ripe for such content.

Fox similarly found an entryway into the creator ecosystem through food. Earlier this year, the company launched Fox Creator Studios, which focuses on food content. The effort is being led by chefs already on Fox’s roster, including Gordon Ramsay.

Ramsey joined NFL legend Tom Brady and stars of network entertainment shows on stage for Fox’s Candid Pitch on Monday to promote his series at Fox and Creator Studios.

Fox has focused much of its streaming efforts on its free, ad-supported service, Tubi, which has deals with YouTube personalities to create content exclusively for streamers. These creators then attract followers from social media platforms.

In particular, Tubi attracts Gen Z viewers, a key demographic for advertisers looking to reach younger consumers who don’t consume much traditional media. The Fox-owned streamer is also launching Tubi for Creators to offer creators a path to Hollywood, CNBC previously reported.

Tubi held its own presentation for advertisers in late March, inviting creators including YouTube’s Jesser to the stage.

The platform has since announced a variety of creator-led partnerships, including an exclusive soccer-focused series led by Jesser that premiered on Friday.