More creators, less money: Creator economy expansion leaves mid-tier creators behind
By Kimeko McCoy • July 11, 2025 •
Ivy Liu
Despite record investment in the creator economy, not every creator is cashing in.
U.S. brands are expected to spend $13.7 billion on influencer marketing by 2027, according to eMarketer. It’s a cash grab, but the competition has outpaced brand budgets, according to agency execs. That outpacing has left mid-tier creators — those with moderate followings of between 50,000 and 500,000 — struggling to scoop up their fair share of brand spend.
“There’s almost no middle class anymore,” said Paul Desisto, owner of PD Talent, a talent management company. “It goes to the really in-demand creators. The brands, if they are going to spend, are going after those.”
The creator economy is booming. More than 1.5 million Americans work full-time as digital creators — a 7.5x growth rate since 2020, according to recent research from the Interactive Advertising Bureau (IAB). But with growth comes competition, and that’s where mid-tier, lifestyle creators are feeling the squeeze, says Desisto.
At the same time, brands are asking for incredibly niche and specific influencers in campaigns. For example, client asks like young, male bodybuilders who talk to camera during their content creation process in the gym, sports fans in Portsmouth, N.H., and contractors who specialize in HVAC, have all come across the desk of Danielle Wiley, founder of influencer marketing shop Sway Group.
And it’s not just Wiley’s clients. Marketers are becoming more selective about influencers they partner with – all while looking for a clear return on investment. (More on that here.)
Plus, there’s the never-ending request for marketers to do more marketing with less budgets, in which spend goes to whatever can deliver brand awareness and measurable sales lift. That became all too apparent when tariff and economic headwinds came into play earlier this year. Right now, the answer is nano and micro-influencers and not the mid range creators, according to Gregory Curtis Jr., director of influencer strategy at Empower Media.
Steven Sharpe Jr., a creative director and content strategist, has nearly 25,000 followers across Instagram and TikTok, but said brand deals and ambassador opportunities have gotten harder to come by. In the first half of this year, the lifestyle and wellness creator had approximately eight or nine brand partnerships, a significant decrease from the estimated 15 to 20 he had during the same period in 2024. As the second half of 2025 gets underway, he’s lined up two contracts when there’d normally be four to five.
“This middle class of creators is starting to see partnerships disappear or come few and far between,” Sharpe said. “I’m going to go join an agency and I’m going to get a consistent income so I don’t have to stress out over when my next partnership is coming through.”
Sharpe isn’t alone. Earlier this year, amidst the start of the ever-looming TikTok ban, Digiday reported that some creators were re-joining the traditional workforce in hopes of making consistent pay. Meanwhile, others are doubling down on owned-and-operated channels, including Substack, newsletters, personal websites, blogs and other mediums.
It’s clear that the creator economy is shifting. Advertisers are demanding more niche targeting, measurable ROI all while navigating tighter budgets. That has put creators — specifically, mid-tier creators—on the offense, muddying the path to success for mid-tier creators.
That’s not to say advertisers have closed the book on mid-tier creators and influencers. According to Empower Media’s Curtis Jr., those influencers are leveraged when there’s a need for subject matter expertise or niche, “but they’re no longer our default,” he said. “Our focus has shifted toward precision over scale — finding creators whose voice, audience, and creative style align tightly with campaign objectives.”
https://digiday.com/?p=583033
