Has the cost of living crisis hobbled the market for social media advertising? Maybe, says a new report by Dreamdata.
The research says the worsening economic climate has put "marketing budgets on the chopping block".
In the study of 222 active Dreamdata users, 54 per cent said they have stopped active spending on Facebook ads, 42 percent have paused spending on LinkedIn ads, and 16 percent have even withdrawn spend on Google ads.
Yet the report argues that there could be an upside. It says the lower demand could reduce the CPMs of ads and that this is an opportunity for companies to grow their market share cheaply. It highlights the fact that the CPM of LinkedIn ads dropped by 35 percent between March and June 2022.
It quotes an observation made by Forbes in 2019 that “those advertisers that maintained or grew their ad spending, increased sales and market share during the recession and afterwards.”