New Study Reveals Nearly 75% of Performance Marketers Are Experiencing Diminishing Returns on Social Media Ad Spend; Over 50% Expand Into Additional Channels Beyond Social

Core Insights - Taboola has released a report indicating that performance advertising on social media is experiencing significant growth, with ad spend expected to reach $239 billion in 2025 and $273 billion in 2026 [2] - Despite this growth, nearly 75% of performance marketers report diminishing returns on their social media ad investments, highlighting a barrier to achieving better results with increased spending [2][6] - The report, based on a survey of over 300 advertisers, reveals that diminishing returns affect over 30% of marketers' spending, driven by factors such as audience saturation, rising costs, and ad fatigue [6] Industry Trends - The performance advertising landscape is shifting as marketers seek solutions to combat diminishing returns, with over 80% employing multiple tactics and more than half exploring additional digital channels beyond social media [6] - Taboola's technology is positioned to empower businesses by delivering measurable outcomes at scale, indicating a potential opportunity for growth in performance advertising beyond traditional social media platforms [3][4]