Is It Time to Rethink Your Social Media Budget? Insights from a Shifting Digital Landscape

As we wrap up another bustling month at Man of Many, the shifts in the digital media sphere are as dynamic and thought-provoking as ever. A particularly compelling trend is emerging amid these changes: the decline in social media consumption amidst still-rising social media ad budgets. This paradox poses an urgent question for premium brands and agency media buyers: "Is it time to redirect your ad spending?" Here, we delve into the latest research and developments that could reshape your advertising strategies, ensuring your investments not only resonate with today’s consumers but are also positioned for maximum impact.

This month's insights into the declining engagement on social platforms, alongside the inefficiencies in digital ad spending, signal a critical need for brands to reassess where they focus their advertising efforts. With compelling data suggesting a stronger impact and higher consumer engagement with content on independent publishing platforms, now is the opportune time to consider how shifting a portion of your budget could enhance your brand's visibility and resonance with engaged audiences. Furthermore, the recent introduction of Google's AI Overviews, which places AI-generated answers at the top of search results, underscores the evolving digital landscape and the need for brands to ensure their content can compete in this new environment. This feature could potentially impact how content is discovered and consumed, making it even more crucial for advertisers to leverage platforms that offer depth and retain user engagement.

As we continue to navigate these changes, our commitment to pioneering in the digital space and bringing our readers and partners the most relevant and impactful content remains unwavering. Join us as we explore these new opportunities and continue to set the standard for excellence in digital media.

Introduction to the Shift in Consumer Behavior

Recent data points to a significant trend: while social media advertising budgets continue to inflate, the actual consumption of social media is on the decline. The latest report from We Are Social and Meltwater highlights that social media usage among Australians has dropped by 2.3% compared to last year, yet digital ad spend grew to a staggering 72.4% of all advertising expenditures in Australia.

Redefining Advertising Strategy in Light of Usage Trends

The Trade Desk, in collaboration with Canvas8, offers compelling research indicating that 64% of Australians' online time is spent on the Open Web rather than within closed social media ecosystems. This stark contrast between consumer behaviour and current ad spending patterns suggests a mismatch in strategy, particularly when considering that over $100 million was deemed 'wasted' on digital ads in the first quarter of 2024 alone, with a substantial portion allocated to social media platforms.

Consumer Preferences Lean Towards Valuable Content

Influencer marketing firm Social Soup's research reveals a shift in consumer preferences towards informative and relatable content, with 52% of respondents citing information-rich content as the most impactful on their purchasing decisions. This contrasts sharply with entertaining content, which only influenced 18% of consumers, and humorous content, which had a mere 7% impact.

As Simon Owen's states, you can call it "influencer fatigue" or social media burnout, but the rise of fashion Substacks and long-form newsletters are a clear indication that people are seeking more depth from their online interactions beyond social.

Native Content: A More Effective Alternative

Research led by US marketing and strategy firm The McCarthy Group found 84% of 18-34-year-olds no longer respond to traditional advertising strategies, highlighting the advantage of native content in building trust. Evidence continues to mount in favour of native advertising over traditional digital ads. Studies by Amplified Intelligence show that 85% of digital ads fail to engage consumers beyond a brief 2.5-second window. In contrast, native content—content that is integrated within the editorial flow and leverages the publisher's credibility—commands more attention and action, with 84% of consumers taking some form of post-engagement action (Source: Medium Rare).

I've already written about this across Mumbrella on the case for investing in independent publishers and news media. Publishers' native content shines here, particularly when they can leverage their existing relationships with their readers. This creates advocacy and trust, resulting in active attention and higher engagement.

Concerning Inaccuracies and Trends in Generative AI

The introduction of Google's AI Overviews, formerly the Search Generative Experience or "SGE", introduces significant challenges for the digital publishing landscape. This AI-driven feature prioritises AI-generated summaries at the top of search results and could potentially push down traditional content links. This shift may significantly impact content creators' site traffic and ad revenue, underscoring the urgency for brands to consider these implications. Moreover, the reliability of these AI summaries has been 'called into question' by recent incidents, such as misleading suggestions that have gained notoriety online—for example, incorrect AI advice recommending readers drink urine.

Amidst this backdrop, concerns about the quality of AI-generated content are growing. Publishers may be tempted to produce large volumes of what some critics label as "AI slop"—content generated quickly and cheaply using AI but which often lacks depth and value. Such content not only costs Google money to crawl but also fails to meet users' information needs or align with Google’s quality guidelines.

In response to these challenges, Man of Many has implemented a stringent AI Usage policy, prohibiting the use of AI to create any editorial content published on our site. The core of this decision lies in the inherent limitations of AI or Large Language Models ("LLMs"). These models, while advanced, cannot generate new information; they merely rehash existing knowledge.

This scenario underscores why we remain committed to producing high-quality, original, and unique content. We focus on adding substantive "information gain" to our articles—a concept highly valued by Google. Information gain refers to content that provides new insights or knowledge not readily available elsewhere. This content is the domain of human creativity and journalistic expertise, essential for maintaining the integrity and value of information in the age of pervasive AI.

The ongoing demand for new, trustworthy information is particularly critical as AI companies face the looming challenge of a potential data drought, having already exploited much of the available data to train their models. Thus, genuine journalism and insightful media content continue to hold immense value for AI companies and brands seeking meaningful partnerships in the publishing arena. As we navigate these complex dynamics, our commitment to authenticity and quality ensures that Man of Many remains a trusted source of valuable content in a rapidly evolving digital ecosystem.

The Financial and Strategic Advantage of Direct Investment

Investing directly in independent publishers not only offers brands more control and transparency but also aligns with evolving consumer preferences for authenticity and relevance. This strategic shift can be economically beneficial, too, considering the inefficiencies in current ad spending: nearly half of the $100 million wasted in Q1 2024 in Australia was spent on platforms like Facebook and Instagram.

We cover more on this and why advertisers should prioritise publishers in this handy infographic on the News Media Bargaining Code.

Concluding Thoughts: A Call for a Strategic Spend Reevaluation

Given the alignment of consumer engagement with informative content, the inefficacy of short-lived digital ad impacts, and the ongoing issues with programmatic advertising and AI, it is critical for premium brands and media buyers to reassess their advertising allocations. By channelling investments towards independent publishers, brands can benefit from higher engagement rates, more substantial consumer actions, and, overall, more effective advertising outcomes.

The question remains not just about the potential of independent media but about the necessity to shift towards more sustainable, impactful advertising practices in today's rapidly evolving media landscape.

Company Update: Celebrating Our Achievements and Innovations

Before diving into these insights, we’re thrilled to share some exciting news from our team. Man of Many has been shortlisted for two prestigious categories at the 2024 Mumbrella Awards—Sales Team of the Year and Media Brand of the Year. Achieving this with our dedicated, albeit smaller, team compared to many legacy publishers underscores our commitment to innovation and excellence in the digital space. It’s a privilege to be recognised alongside such an esteemed company, and we extend our congratulations to all nominees. For more details on the Mumbrella Awards and the full list of nominees, visit: https://lnkd.in/dUhG7p6H

We are also excited to share that Man of Many secured multiple awards at this year's Digital Media Awards Asia 2024, marking us as the sole Australian publisher to be honoured!

The event took place in Kuala Lumpur and celebrated the pinnacle of digital media innovation throughout the Asia-Pacific. A huge thank you to WAN-IFRA, the World Association of News Publishers, our incredible team, and all our readers and partners for your ongoing support.

Announcing Sydney Whisky Month: A New Chapter in Our Culinary Adventures

Adding to the excitement, we proudly announce the launch of Sydney Whisky Month, expanding our beloved Whisky Week into an entire month of exceptional tastings and events celebrating the finest in global whisky. This festival promises to bring together connoisseurs and enthusiasts alike in a series of events highlighting this cherished spirit's depth and diversity. From the inaugural Whisky Show Sydney to unique themed weeks featuring brands like Glen Moray, Stauning, and Angel's Envy, Sydney Whisky Month is set to be a landmark event on the city's cultural calendar.

As we look forward to these events and celebrate our achievements, we are also keenly focused on the evolving media landscape and what it means for advertisers. Stay tuned as we continue to lead the conversation on effective digital strategy and provide our readers and partners with insights that drive success. For a detailed look at what Sydney Whisky Month has to offer, check out our lineup and secure your tickets here: Event Details and Ticket Information

Watch this video here from our Editor in Chief Nick Hall to get even more excited.

And lastly, we love seeing luxury Australian premium brands like LARK Distilling Co taking over Man of Many's homepage to kick off Sydney Whisky Month events as we are both proud to be 100% Carbon Neutral Climate Active Certified businesses!

If you're interested in discussing similar display opportunities for your brand, please get in touch with us. Let's explore how we can collaborate to create impactful and engaging experiences for our audiences across Man of Many, the reigning Mumbrella Publish Website of the Year 2023 and B&T's Media Platform of the Year 2023.

About the Author: Scott Purcell, the Co-Founder of Man of Many and a CFA Charterholder, is a renowned figure in the media industry. His entrepreneurial spirit was recognised in 2017 when he was a Finalist for Young Entrepreneur at the NSW Business Chamber Awards. With a special focus on technology, finance, whisky, and general lifestyle content, Scott has collaborated with leading international brands like Apple, Samsung, IWC, and TAG Heuer. In 2023, his leadership and innovation were further acknowledged as he, alongside Frank Arthur, ranked #47 on the MediaWeek Power 100 List by MediaWeek. Under his guidance, Man of Many triumphed as the Best Media Platform at the B&T Awards, 2023, and clinched the titles for Best Engagement Strategy, Website of the Year, and Publish Leader of the Year at the Mumbrella Publish Awards, 2023, showcasing his unparalleled expertise and influence in the media sector.