Social media ad spend vulnerable as trust declines further, survey finds

Dive Brief:

More than three-quarters of media experts cited declining consumer trust as their top concern for social media advertising, according to Integral Ad Science’s Industry Pulse Report.
Despite those concerns, more than 90% of respondents said they would continue to advertise on the platforms in 2023. Two-thirds, however, said transparency issues would negatively impact their social media spending.
Connected television (CTV), digital audio and mobile advertising will be bright spots for the advertising industry in the coming year, according to the report. Contextual targeting will also become more important as consumer privacy concerns become more prevalent.

Dive Insight:

Advertisers won’t be giving up on social media anytime soon. Despite its many well-documented problems with privacy, ownership and its effect on public discourse, the platforms offer hard-to-ignore engagement and reach, especially when it comes to targeting Gen Z.

“Marketers can’t turn away from the allure of reach and engagement that social media can provide,” said Khurrum Malik, chief marketing officer at Integral Ad Science, in the release. “This love/worry relationship highlights the need for transparency for social media advertisers.”

Social media may be making some headway in these areas. According to IPG Mediabrands and Magna’s most recent Media Responsibility Index, social media platforms are demonstrating some improvement in the areas of safety, inclusivity, sustainability and data ethics. Still, social media has a long way to go before it catches up with traditional broadcast and cable channels, which have been the subject of federal regulations and third-party enforcement for decades. Moreover, CTV platforms had higher data ethics scores than their media-led counterparts.

Perhaps that is why marketers point to digital media as a potential bright spot for 2023. Seventy percent of respondents to the IAS survey said audio listeners will continue to migrate to digital formats, though two-thirds of respondents are also concerned about ad fraud and brand risk within the channel. Publishers are also bullish about video game advertising, with 34% saying there is potential in the channel, and 19% saying they will prioritize video game advertising in 2023.

In addition, 44% said CTV and digital video hold the most potential for innovation in the coming year, a result that mirrors findings from Pixability gauging agency interest in the channel. Forty-seven percent of respondents report that mobile will remain a key priority next year.

Respondents are solidifying their post-cookie plans, with nearly 60% reporting they are attempting to combat consumer privacy issues and cookie deprecation by prioritizing contextual targeting, which uses keywords, website content and other metadata to serve consumers relevant ads. The IAS report surveyed over 350 digital media and advertising executives, including those representing brands, publishers, agencies and ad tech vendors.