What Social Media’s On-Going Downfall Means For Retail Brands

systems before using apps that began in quiring about monitoring, but after that, a tidal wave of opt-outs began, fluctuating between 85 and 95% in 2021. Facebook’s parent company, Meta, told investors that $10 billion in revenue might disappear by 2022 as a result of users choosing not to use cross-app tracking on Apple iOS, which accounts for more than 50% of phones in the US but is undoubtedly not all of them. smm panel

According to Meta’s data, even though CAC is still quite high, consumer opt-outs have drastically decreased the effectiveness of that spend. Gartner’s spin on the bad news was that opt-out rates should drop to “just” 60% in 2023, mainly because consumers would come to the conclusion that they don’t appreciate untargeted advertisements. Other trackers, in the meantime, indicate that opt-outs have levelled off in 2022 at about 75%. social media

The impact of social media on society as a whole has also received a lot of attention in recent years. The Facebook Papers, research demonstrating how using social media negatively impacts kids’ mental health, and algorithms that fuel fury and divert radicalization into conspiracy theories are all examples of this.

The potential effects on brands are, however, far more intriguing—and bad news given how heavily brands rely on social media and digital advertising. In 2022, the “Visions Report,” an examination by Future Commerce, a consultancy that describes itself as a “retail media research company,” was particularly thought-provoking. To be completely honest, I think the report could use a voiceover to assist connect the dots, but it’s still well worth the effort. The authors draw attention to the fact that radicalization rabbit holes are not just confined to politics; they are also threatening capitalism.

If you think it’s a little out there, keep in mind that, despite some people’s insistence, the world is NOT flat. And two, be aware of growing anti-consumerism sentiment, which was already on the increase prior to the epidemic but has since grown even stronger. Globally, there is a growing consensus that consumption is bad for your well-being, the environment, and your ability to support yourself. By definition, retail is mostly based on ongoing consumption.

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