Modern marketing did not lose effectiveness because audiences became distracted; it lost effectiveness because institutions optimized for scale after credibility became scarce. As distribution grew cheaper, messages multiplied. Brands spoke more often and with greater confidence, assuming repetition would substitute for belief. It did not.
Institutional speech came to be treated as low-risk and therefore low-value. The result is a familiar paradox: companies spend billions on advertising that struggles to persuade, while individuals with no formal authority—often complete strangers—shape purchasing decisions overnight. This is not a social-media quirk or a generational shift. It is a rational response to how trust actually works.
For years, marketing success was measured by reach, frequency, and polish, while accountability quietly faded. Claims were made by organizations, not people. Responsibility was spread across departments, agencies, and platforms. When promises fell short, the cost was absorbed institutionally rather than borne by any individual. Over time, confidence drifted away from consequence.
Self-promotion is a weak signal. When a company praises its own product, the incentive to exaggerate is obvious and the penalty for doing so is distant. Rational consumers apply a credibility discount. The harder brands insist they are innovative or authentic, the less those claims are believed.
Advertising did not fail because it lost creativity. It failed because it lost conviction.
Modern advertising assumed that if a message was strong enough, the messenger did not matter. Campaigns were designed to travel far, not to come from anywhere in particular. Over time, who was speaking mattered less than what was being said.
Audiences reached a different conclusion. Messages detached from accountable messengers were easy to ignore. Claims without a human source carried little weight. Information still flowed; belief did not.
Why should an uncredentialed individual with a smartphone command more trust than a global brand with decades of expertise? The answer is uncomfortable for institutions: credibility no longer follows authority. It follows consequence.
This is the gap creators filled.
Creator marketing is often likened to celebrity endorsement, but the similarity is misleading. Celebrity endorsements relied on borrowed fame: visibility without sustained exposure, association without ongoing judgment. As the model scaled, risk diminished. Well-known figures could promote many products with little lasting damage to their core asset, which was diversified across contracts and platforms. Creators operate under a stricter constraint. Their credibility is earned continuously, tested publicly, and tied directly to their future income. One model borrows attention; the other risks reputation.
Creators succeed by restoring human signals at scale. They are culturally fluent because they live inside the worlds they address. They understand tone and relevance as lived experience rather than research output. Storytelling is native to them because it is how people actually communicate.
People stop scrolling for humans, not institutions. Cultural fluency earns attention. But attention alone does not explain belief. The missing constraint is risk.
Belief emerges when words carry consequence. When a creator recommends a product, they stake their reputation, their audience, and their future income on that judgment. If it disappoints, the penalty is immediate and public—visible in comments, screenshots, and unsubscribes.
Payment does not nullify this dynamic. It sharpens it. A creator who repeatedly promotes products that fail their audience does not merely lose credibility; they lose their business. The market disciplines them quickly.
Institutional claims work differently. When a brand overpromises, the cost is diffused and delayed, absorbed by the organization rather than borne by an individual. Creators outperform brands when personal consequence is activated at scale—when belief is routed through a human who can be held to account.
Most companies accept that creators work. Many misunderstand why. They treat creators as a channel or a format, scripting and sanitizing them as they once managed agencies.
The outcome is predictable. The moment a creator sounds like a brand spokesperson, credibility evaporates. In neutralizing risk, companies neutralize persuasion. What remains may be compliant, but it is no longer convincing.
Trust does not scale through tighter messaging frameworks or stricter guidelines. It scales through delegated authority.
This is not a creative choice. It is an organizational one. Firms must decide whether they want to sound right or be believed.
Creator-led marketing feels new only because the industry spent years ignoring an old rule: people trust people more than institutions.
Now attention is scarce, and trust is scarcer. Creators did not replace advertising because they are louder or cheaper. They replaced it because they combine story, culture, and accountability in a way institutions no longer can.
Technology did not change how trust works. It simply made the absence of it impossible to ignore.
Joseph Perello is the founder and CEO of Props. Previously, he was the first CMO of the City of New York in the Bloomberg Administration, and was recognized by Harvard Business School as the most innovative initiative of any city. Joe founded and bootstrapped an award-winning digital ad agency. He was VP for the New York Yankees, working directly for the late George M. Steinbrenner III, and helped the team break attendance and revenue records. He was an executive with David Bowie’s internet start-up UltraStar and started his career as a direct marketer with credit card pioneer MBNA America. He’s on the board of New York Cruise Lines and Princeton Academy. Joe earned his undergraduate degree in History and Journalism from the the University of Delaware.