The world of marketing is witnessing a positive shift as more and more marketers turn their attention back to social media platforms. A significant 51% of decision-makers from both brands and agencies are gearing up to boost their investments in this category throughout the current year, according to a recent survey shared by Advertiser Perceptions with Marketing Dive.
This surge in enthusiasm stands in stark contrast to findings from just a few months ago, when only 44% of these decision-makers had expressed plans to increase their spending on social media in 2023. This change in sentiment highlights the improved return on investment (ROI) that marketers are experiencing from social platforms compared to the previous year.
However, while social media is experiencing a resurgence, the appeal of Connected TV (CTV) remains strong. About 54% of marketers and agencies are looking to allocate more funds to this area. Diving deeper into the survey data, a noteworthy distinction arises: brand marketers show a preference for social media over CTV and traditional linear TV, while their agency counterparts exhibit a stronger inclination towards ramping up investments in CTV (61%) and linear TV (36%).
The momentum is further supported by the tech earnings reports from July, indicating that the digital advertising market is beginning to emerge from the challenges posed by shifting economic conditions and evolving privacy regulations over the past year. The recent data from Advertiser Perceptions reinforces this sense of industry recovery, revealing a notable change in sentiment around social media spending since the spring months.
This comprehensive study, based on a June survey encompassing the insights of over 300 executives who manage substantial media budgets—each having spent more than $1 million on ads within the last month—offers a valuable peek into the differing viewpoints of brands and agencies. While brand marketers are leaning towards favoring social media over CTV, agencies are more keen to invest in CTV (61%) and linear TV (36%).
The newer insight indicates that advertisers are becoming pickier about where and who they advertise with on social media. X, which used to be called Twitter, has lost many advertisers since Elon Musk bought it last year. Despite Elon Musk’s efforts, the results he wanted haven’t happened yet. Snapchat is also having trouble making money when the market isn’t doing well, and new apps like BeReal that got popular during the pandemic are now not getting as many people interested.
Among the decision-makers surveyed, one key factor emerged as a central consideration when selecting media partners—the ability to effectively reach target audiences. This factor gains even more prominence among brand marketers, with a significant 65% considering it a decisive factor in their decision-making process.
In conclusion, the current trajectory of the industry hints at a period of resurgence, with marketers recalibrating their strategies and investments, particularly in the dynamic landscape of social media. As the industry navigates its way towards recovery, the role of social media platforms is undoubtedly emerging as a critical component in the marketing mix.