While consumers are busy scrolling through feed after feed on social, behind the scenes, brands are working their magic, to engage us through ad after ad.
But are we engaging? Or are we shutting off? It doesn’t seem to matter. Brands are addicted to feeding us content – relevant or not.
To put this into perspective, according to MDG Advertising 74% of CMOs believe they will tie social media efforts to a hard ROI this year. And even more surprising, is the fact that social media ad spend alone is predicted to be in excess of $35 billion dollars this year – with the forecast growing to account for 20% of all internet advertising, and over $50 billion by 2019 (Fortune.com).
So what keeps brands coming back?! Perhaps, it’s the rapid expansion of advertising opportunities, perpetual development of social media platforms, and technology. But is it for the better? For the industry, it certainly seems so; especially for the platforms:
Twitter’s shift to news has lowered its ad revenue by over $2 million (based on 2017 Q1). But despite the ad revenue coming in low, Live Video statistics are showing a great deal of promise, with a completion rate over 95%, and an ad engagement rate rising 151% YoY.
Instagram is having a fabulous year as well, with ad revenue predicted to hit $2.81 billion by the close of the year. Additionally, according to a report carried out by the Social Media Examiner, there are no signs of the platform’s ad spend slowing down – with B2C businesses looking to increase activity by 63%, and B2B by 48%, and climbing.
And finally, Snapchat’s new ad platform took the industry by pleasant surprise this year and is anticipating $770 million in ad revenue. Fun fact about their new ads though: don’t waste your money on audio. 60% of users don’t ever listen to the audio!
So Is Brand (Ad)diction Valid?
Not according to a recent survey done across the UK, US, and Canada. In fact, 63% of consumers would respond better if the social media ad had sat on a more traditional platform. And although the poll was relatively small, only surveying 2,000 respondents, for marketers, this still remains alarming! Ad-blocking is becoming more and more of a phenomenon. But why? The simple answer, is trust. According to Marketing Week social media has slowly dug itself into a world of trust issues thanks to the spread of ‘fake news,’ and consumers are not having it anymore.
Ad-blocking is becoming more and more of a phenomenon. But why? The simple answer is trust. Social media has slowly dug itself into a world of trust issues thanks to the infamous ‘fake news’ and consumers are not having it anymore.
So despite the fabulous numbers across the platforms in terms of ad revenue, we have yet to uncover the effectiveness of the spend, as users are starting to shift away from advertising more and more.
Let us know what your thoughts are on this issue. Is there too much focus on ads, and too little focus on organic content?