Digital channels overnight have become the lifeblood of many organizations as they try to manage through the current crisis, reports PR Daily, which added that social media’s dominance has continued for audiences stuck at home and looking for connection online—”and because of the changes many platforms introduced in the last couple of years, paying to play could be a brand manager’s best option to join the conversation.
“We recently caught up with P.K. Kannan, Ph.D., the Dean’s Chair in marketing science in the online MBA program at the University of Maryland, who shared some of his thoughts on the future of paid social against the backdrop of a global pandemic.
“PR Daily: What does the future look like for Facebook Ads and other social media?
“Kannan: Social media platforms are in the midst of a boom in their total daily users due to the coronavirus lockdowns and social distancing. Facebook (including Instagram) had a 9% increase in daily users, Twitter around 11% increase and Snapchat has experienced an increase of 20% over the last quarter daily user level.
“However, the same coronavirus related causes which have led to these increases are responsible for tepid revenues for ads on the platforms. While these platforms have not experienced a meltdown in advertising spending in the last quarter, the coming quarter is going to be difficult with revenues from ads decreasing significantly as firms tighten their marketing budget.
“It is somewhat ironic that as the traffic on their platforms soar, social media firms are not able to capitalize on it with increased ad rates and revenues as firms are also cutting down on their budgets.”