Pandemic saw social media spending increase to 23% of marketing budgets as pandemic had forced people to stay indoors and companies used digital marketing to increase their outreach. By 2022, companies were using 57% of their spending on digital marketing and with the recent adoption of automation and AI for content generation, it further led to digitization of business models.
This period of growth has been followed by a period of decline where social media spending has declined from 17% in spring 2023 to 11% in spring 2024 which has been dubbed as the lowest levels in seven years.
Some of the reasons for spending going down is that social media has become a cluttered landscape now and this is making difficult for ads to capture consumer’s attention which is leading to driving advertisers away from social media as brands are seeking more effective ways for connecting with their target audience.
There is so much of content on the internet which is causing social media fatigue which is also causing reducing attention spans which is getting distributed among several websites and this is causing marketers to search for different ways of reaching out to consumers.
Also, as per a survey conducted by CMO, social media has not delivered any specific gains to marketers. Finding out the impact of marketing is itself a challenge for many companies and these challenges have multiplied in the world of social media where focus lies on finding out new customers and building brand. These multi-channel environment is further challenging abilities of companies to track journey of customer through to purchase.
So what kind of innovations can help in getting over these problems:
Make use of LLMs for generation of social content, integration across channels, improvising to stay relevant, forming better influencer collaboration and last but not the least being creative in whatever you do to get the best out of social media.
