Almost 75% of performance marketers have reported diminishing returns from their social media ad investments, according to research.
The figure was released as part of The Pulse of Performance Advertising: Diminishing Returns report from content discovery platform, Taboola, and cloud based platform, Qualtrics.
Key insights from The Pulse of Performance Advertising: Diminishing Returns include:
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Most performance marketers report that diminishing returns affect over 30% of their ad spend.
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Factors such as audience saturation, rising costs, and ad fatigue are contributing to diminishing returns on social media.
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Over 80% of performance marketers are using multiple tactics to address this issue, with more than half expanding into additional digital channels beyond social media ads.
The survey of more than 300 advertisers also found performance advertising on social media is growing rapidly, with industry forecasts predicting ad spend will reach $239 billion in 2025 and $273 billion in 2026.
“While social media accounts for a large portion of performance advertising budgets, many marketers have hit a barrier in the form of diminishing returns,” said Adam Singolda, CEO of Taboola.
“More spend just isn’t translating into better results. The findings in this report point to difficulty in sustaining performance over time, with marketers seeking solutions that can help them overcome that barrier."
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