Not So Long Ago, Social Media Was the New Internet – Why Is Social Media Spending Declining?

Not so long ago, social media was the shiny new tool in every marketer's kit. When the pandemic hit, marketers had no choice but to pivot to digital channels. Social media spending skyrocketed—by June 2020, it had reached 23% of total marketing budgets. Fast forward to 2022, and digital marketing became the powerhouse, claiming over half of all marketing dollars.

But here’s the twist: social media investment is now on the decline. According to the CMO Survey, social media spending dropped from 17% in spring 2023 to just 11% in spring 2024, the lowest it’s been in seven years.

So, what happened? And more importantly, how can marketers still get the most out of social media in today’s evolving landscape?

Why Social Media Spending Is Slipping – are these the reasons? 

1. Too many brand fighting for same attention. It’s getting harder than ever to break through the noise. Remember when a social media ad could easily stand out in a crowded feed? Not anymore. Platforms like Meta have seen their ad revenue explode—$39.9 billion in 2017 to $113.6 billion in 2022.. The result? Higher costs, less engagement, and lower ROI.
2. Social media fatigue is real. With endless scrolling, push notifications, and new content flooding in every second, consumers are tuning out. They’re jumping between platforms faster than ever, making it more difficult for marketers to maintain their audience’s attention.
3. One of the hardest things for marketers to do is track social media’s true impact on sales. It's easy to say "we’re increasing brand awareness," but what about the bottom line? Marketers are obviously influencing business growth! However when measurement gets tough, it gets frustrating when you're trying to justify your budget.
4. For many brands, social media has become a siloed activity—lots of creative content with little connection to broader business goals. When your social strategy doesn’t align with your overall marketing approach, it’s harder to achieve the results you're looking for.

 The Bottom Line 

While social media spending may be declining for some, it’s still an essential channel for connecting with your audience. The key to success lies in adapting to the changing landscape: embrace new technologies like AI, align social with your broader strategy, and get creative with your content. Social media isn’t about throwing more money at ads—it’s about being smarter, faster, and more authentic in how you engage with your audience. 

So, while social media may no longer be the shiny new toy, it’s still a critical part of the marketing toolbox. The brands that adapt will continue to see meaningful results. After all, social media isn’t going anywhere—it's just evolving, and so should we.

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