Insights from 5 Key Charts

Navigating the Changing Landscape of Social Media

Introduction

The world of social media is in constant flux, and as we step into 2023, significant shifts are underway. The traditional forms of social networking are evolving, with new trends and platforms emerging. As marketers, it’s crucial to grasp these transformations to stay ahead in the ever-evolving world of digital communication. In this article, we’ll explore five insightful charts that shed light on the new era of social media.

1. Gen Z’s Influence Continues to Grow

Generation Z is making waves in the realm of social media. While Millennials still make up a substantial 30% of US social network users (68.5 million), Gen Z is close behind, accounting for 24.7% (56.4 million) and steadily expanding. This generation’s behaviours, such as their affinity for TikTok, Stories, and a disdain for paid ads, are shaping the future of social media. It is vital for marketers to monitor how Gen Z engages with these platforms while also remembering that Millennials remain active and engaged on social media.

2. TikTok’s Ascendance

TikTok is rapidly gaining ground. It has already outpaced Instagram in terms of daily minutes spent by US adults and is predicted to surpass Facebook in 2025. What’s more, these figures don’t even factor in the extensive time teenagers devote to the platform. Although Facebook and Instagram still boast more US users, TikTok leads in Gen Z users, with 45.8 million, surpassing Facebook (30.9 million) and Instagram (45.5 million). TikTok’s influence, especially among young audiences, is expected to continue to grow.

3. Ad Spending Favors Meta

While social media habits shift, ad spending remains heavily skewed towards Meta platforms. Although US adults spend 7.6% of their digital media time on Meta platforms, advertisers allocate a substantial 19.5% of their digital ad budgets to Meta. This trend is not mirrored on platforms like YouTube, TikTok, or Snapchat. Despite the pivot towards TikTok among younger users, Facebook and Instagram continue to attract advertisers. This indicates that Meta is excelling in areas like user data, ad placements, user-friendliness, and tracking.

4. The Era of Influencers

Social ad spending in the US is still growing, albeit not as rapidly as during the peak of the pandemic. On the other hand, influencer marketing is on a rapid ascent, maintaining double-digit growth through 2025, outpacing the single-digit growth of paid advertising. While influencer marketing represents a smaller portion of total spending at $5.14 billion compared to social ad spending’s $68.45 billion, it’s clear that marketers are increasingly drawn to the authenticity that influencers bring to their campaigns. This trend towards influencers extends to paid social advertising as well.

5. Threads Unraveled: Text-Based Platforms Struggle

Finally, text-based platforms like Instagram’s Threads and X (formerly Twitter) rivals have faced significant challenges. Threads, despite an initial surge in downloads driven by curiosity and novelty, saw an 82% drop in daily active users by the end of its launch month. X’s future also appears uncertain, as users lose interest and monetization difficulties persist. This suggests that Twitter-like platforms may no longer be sustainable due to a lack of user engagement and monetization struggles.

Conclusion

In the ever-evolving landscape of social media, adaptation is key. Understanding these five charts is essential for marketers seeking success in 2023 and beyond. Gen Z’s influence, TikTok’s rise, Meta’s ad dominance, the ascent of influencers, and the challenges faced by text-based platforms all paint a picture of a dynamic social media ecosystem. By staying attuned to these trends, marketers can navigate the evolving landscape effectively and make informed decisions to reach and engage their target audiences.