This story was originally published on Passionfruit.
As fears of a recession loom, marketing budgets—often the first to see cuts—are shrinking, particularly in the creator space, with companies like Pinterest, Patreon, and influencer marketing startup Grin being the latest to announce layoffs. Recent figures reveal that nearly half of U.S. brands cut spending in the wake of inflation, a global supply chain crisis, and overall economic volatility. According to the World Federation of Advertisers (WFA), nearly 30% of major advertisers plan to cut their ad budgets in 2023, with 74% reporting the economic downturn is influencing their 2023 budget.
This has many creators bracing for an uncertain 2023 as brands and advertisers look for areas to slash budgets, leaving them with less room in the budget for things like influencer marketing.
Emma Nacewicz (@emmanacewicz) is a full-time creator. She said she’s already starting to feel the effects of the economic slowdown, with fewer brands reaching out to her for brand deals, especially during the typically busy holiday season.
