As Meta touts cheaper results, marketers question paid social's transparency

"At EMARKETER's Future of Digital Summit last month, Liquid Death's chief media officer Benoit Vatere voiced his frustrations with paid social, arguing that the lack of transparency that comes with automation outweighs any efficiency gains. Some 75% (74.7%) of marketers reported diminishing paid social returns in a recent Taboola study. This slowdown could stem from a combination of factors, including rising ad costs, slower growth, and a plateau in time spent on social platforms, said our analyst Minda Smiley."

""Two things can be true. Marketers may be seeing diminishing returns, but that isn't stopping them from spending on social platforms," said Smiley, adding that marketers have become reliant on the ability of these platforms to drive results. As ad costs rise, Smiley said it's partly due to Meta's Advantage+ program, which is "essentially driving up prices with the promise of better results."."

""They're iterating on creative, but they're not really telling the brand what's working. They're just kind of magically doing things in the background," said Lance Wolder, head of strategy and marketing at Padsquad. "The brands that I talk to have a real sincere concern about what's actually running." Despite transparency concerns, Meta just saw its first share gain of US ad spending since 2018. While marketers might be frustrated, it's not enough to stop spending and miss out on reaching their consumers where they are."

Meta plans to fully automate its ads business with AI by 2026 and positions automation as a path to higher performance. A large share of marketers report diminishing paid social returns, with contributing factors including rising ad costs, slower platform growth, and a plateau in time spent on social platforms. Meta's Advantage+ program is cited as driving up prices while limiting advertisers' ability to choose campaign priorities or audiences. Brands express concern about lack of transparency into creative and placements. Despite concerns, Meta gained US ad spend share and marketers continue to invest to reach large social audiences.

Read at EMARKETER