75% of marketers see declining returns on social ads: Report

Mumbai: A new report from Taboola, in partnership with Qualtrics, highlights a significant trend in performance advertising: nearly 75% of marketers are experiencing diminishing returns on their social media ad investments. 

As social media ad spend continues to grow—predicted to reach $239 billion in 2025 and $273 billion in 2026—marketers are facing challenges in achieving sustained performance.

The survey, The Pulse of Performance Advertising: Diminishing Returns, reveals that more than 30% of marketers’ ad budgets are impacted by diminishing returns. Factors such as audience saturation, rising costs, and ad fatigue are contributing to this decline. To adapt, over 80% of marketers are diversifying their strategies, with more than half expanding into additional digital channels beyond social media ads.

Adam Singolda, CEO of Taboola, commented, "Despite social media's dominance in advertising spend, many marketers are encountering a barrier where increased investment no longer translates into better results. This research underscores the need for innovative solutions to overcome this challenge."

The study surveyed over 300 advertisers across brands and agencies in the U.S., providing key insights into the evolving landscape of digital advertising.