Rethinking Social Media Budgets Amid Privacy Shifts

Marketers are rethinking their social media spending as stricter privacy rules and ad fatigue force a shift from traditional ads. Brands are reallocating budgets toward alternative channels—like digital out-of-home, connected TV and influencer partnerships—and employing data-driven strategies to maximize ROI in a rapidly evolving landscape.

Fremont, CA: Marketers are increasingly reevaluating their digital advertising strategies as consumer discontent and tighter privacy rules stir the social media landscape. Recent studies reveal that while social media once dominated ad spending during the pandemic, brands are diversifying their investments to counteract declining user engagement and mounting ad fatigue.

Meta’s decision to transition from its fact-checking program to a user-driven ‘community notes’ system has intensified concerns about brand safety. This shift and stricter privacy measures, such as Apple’s App Tracking Transparency framework, have made targeting and retargeting increasingly challenging for marketers.

“Privacy regulations have further constrained the ability to track and engage consumers effectively.” This sentiment has led many brands to reallocate budgets toward channels offering broader reach and enhanced targeting capabilities, such as digital out-of-home (DOOH), connected TV (CTV) and more advanced display advertising formats.

Yet, the story is not uniform across regions. In markets like Thailand, social media remains a powerhouse. Platforms like Meta, TikTok, LINE and YouTube now account for nearly 60 percent of the country’s digital spending. TikTok is leading the charge with a 71 percent growth rate, far outpacing Facebook’s 23 percent, emphasizing that social media still plays a crucial role in many regions’ advertising strategies.

GWI data shows global social media ad spending will hit $247.3 billion in 2024. However, industry experts note that while overall spending continues to grow, the nature of that investment is evolving. Increasingly, brands are shifting away from traditional advertisements toward influencer partnerships.

This shift comes amid growing consumer frustration. A Hootsuite report earlier this year found that nearly 60 percent of users feel bombarded by ads, with over half expressing fatigue from overtly promotional content. The oversaturation of ads has created a challenging environment for brands to maintain visibility.

In response to these challenges, industry leaders are exploring innovative strategies. Few suggest that brands pivot away from outdated, heavily branded content and invest in native, platform-specific content—like engaging TikTok videos—that can drive both awareness and conversion. Leveraging social display tactics and transforming social creatives into ads across the open web offers marketers advanced targeting options and broader audience reach.

Integrating CRM and CDP data for lookalike modeling or audience exclusion can significantly reduce ad wastage. Emerging trends such as live-stream selling, particularly on platforms like TikTok, are also proving to be effective conversion drivers, supported by AI-driven solutions that maintain engagement around the clock.

As brands navigate this evolving landscape, the consensus is clear: while social media remains a critical element of digital advertising, its role is rapidly transforming. The future belongs to those who can innovate with data-driven strategies and cross-channel integrations, ensuring that every advertising dollar delivers maximum return in a crowded and ever-changing digital arena.