The recent departure of X’s former CEO, Linda Yaccarino has once again brought the fate of the social platform formerly – and perhaps more affectionately – known as Twitter into question. But more than that, the massive shifts in X’s ad revenue over the last three years has raised questions for brands and advertisers about the shifting value of social media.
According to the latest forecast from EMARKETER, X will see ad revenue growth for the first time in four years, while total earnings still only amount to about half of what they did in 2021. Many advertisers fled the platform after Elon Musk took ownership, but this year’s projected 16.5% growth suggests that some brands may be slowly returning.
The shift demonstrates advertisers’ adaptability as consumer trends fluctuate, but, arguably, the main takeaway from a case study on the great advertising X-odus is a lesson in brand safety and trust. X may no longer be an essential channel for some brands, but it can be a highly valuable channel for brands seeking real-time engagement, news-driven campaigns, or targeting niche communities. As with any digital channel, the value and effectiveness of the channel depend on a brand’s goals, audience behavior, and industry relevance.
A Closer Look at Social Media Marketing
The advertising budgets that brands pulled from X didn’t simply disappear: Despite the sharp decline at X, global digital ad spending continued to see double-digit growth starting in 2023. With brand safety as the north star, many brands reallocated those dollars to other channels, including alternative social platforms, connected TV, retail media networks, and perhaps even more native advertising and creator-led content. And, we continue to see a rise in the diversification of marketing channels.
That’s not to say that social platforms or social ads are no longer relevant. According to a 2024 survey by Sprout Social, 78% of consumers (and 88% of Gen Z) agree that a brand’s social media presence has a larger impact on whether or not they trust a brand compared to a year ago. At the heart of the issue for marketers, then, is not whether social platforms in general are still valuable, but rather how brands can remain agile and leverage the right channels at the right time for their audience as part of a larger omnichannel strategy for brand relevance.
Brand Relevance Strategies to Future-Proof Your Success
Evolution and diversification have been inherent to marketing since the inception of advertising. It was not long ago that the industry powerhouses were major agencies that had controlling relationships with the biggest brands and media publishers. Their influence was tied to their ability to secure premium ad placements and negotiate large-scale media buys in TV, radio, print, and out-of-home advertising — something far less relevant in the fragmented, self-serve social advertising ecosystem today. Now, as ad revenues exceed $1 trillion for the first time, the majority of that revenue is dominated by the Big 5 in tech: Google, Amazon, Meta, ByteDance (owners of TikTok), and China’s Alibaba, all of which sell directly to brands without agencies as gatekeepers.
To stay relevant, savvy brands have learned to adapt to the shifting sands of advertising trends and consumption habits, and in this current era of digital-first communication and brand distrust, it’s critical for brands to examine how to establish relationships with their audiences that will stand the test of time, whether across social platforms, other digital channels, or avenues yet to be developed.
- Know your brand and know your audience. Every generation collectively defines its social values, and so should every brand. Clarifying their brand’s priorities can help marketers discern which messages and platforms best align with their values and their audience’s, where to take risks, and when to stand firm amidst the inevitable evolution of public opinion.
- Embrace change. A firmly rooted identity gives brands the freedom and flexibility to experiment, but with brand safety guardrails. Social platforms in particular offer brands playgrounds for creative content, partnerships with other content creators, and leveraging the latest tools, like AI integration.
- Optimize your budget. The advertisers who left X were proof that brand trust can – and should – be just as critical as performance when evaluating the ROI of your advertising budget. If a channel isn’t delivering on your goals, or is actively detracting from them, it’s time to shift your spend. Here are some of the ways brands are making the most of their social media budgets:
Putting these principles into practice can unlock the power of social media, even without X, when leveraged as a complementary tool in a comprehensive marketing mix. We saw that firsthand when Armstrong came to (amp) for our help promoting their residential ceilings. Armstrong was offering an effective solution for a real consumer need. The problem was that most of their target consumers (40+ year old males and other DIY’ers) had no idea this solution existed.
This holistic approach led to increased awareness and engagement across the board, with the added value from the influence network that gave Armstrong credibility in the décor and inspiration category with an expanded audience consisting of males and females 35+.
Leap Lesson: Insight from Our President
We sat down with Ryan Smith, President of Leap (amp), to discuss how the social media advertising landscape has changed and where he sees it going.
“The power of social media advertising remains the same as it has for the past decade, but the landscape has changed, particularly when it comes to all the options brands now have when using social media to grow their business. AI-driven personalization, short-form video, and commerce integration are a few trends that are changing the game. Furthermore, creator- and influencer-led content is driving a whole new way for brands to engage their target audiences. Add in the fact that social media companies are at the forefront of machine learning, and native ad experiences are set to become more and more powerful.”
Smith explains that social media will continue to be one of the most important aspects of B2C marketing, noting that he “personally believes we’re going to see new and exciting ways to utilize social media for B2B in the next couple of years.”
Whether you’re deepening your B2C influence or diving into B2B, (amp) is here to help define the digital media solutions that are right for your brand and your audience.
