The largest advertising budget worldwide goes to social media
Brands and CMOs are increasingly looking for agencies that have knowledge of different types of marketing on various platforms, such as influencer marketing, TikTok short-form, dedicated YouTube content and online commercials. This requires specific knowledge from agencies about how algorithms, content creation and media purchasing works on different platforms. This knowledge is important to generate engagement with a broad audience – an audience that was previously completely reached by TV. Brands in 2024 need a partner who can translate one overarching idea or concept to multiple platforms. That is what we are growing towards as an industry.
According to Warc’s ‘Social Media Reaches New Peaks’-report, the largest advertising budget worldwide goed to social media. A fundamental and irreversible shift and therefore high time to zoom in on this trend.
Social media is the place where consumers search
Social is thus overtaking both search engines and the traditional TV commercial.
We are in the middle of the era of social discovery and social (video) search. Just think – how often do you scroll through Instagram, YouTube Shorts or TikTok, consciously or unconsciously, looking for the best local hotspots, cleaning tips or new products? Social is the favorite method of search for Gen Z, but this no longer only applies to this target group. Forbes recently reported that more than a quarter of people discover new brands on social media every day. This is a broader change in consumer behavior, including older generations. Brands that respond to these changes have a strong advantage over their competition.
“Not ‘just’ a TV-commercial”
Social agencies understand these nuances, which is why they are growing so fast. They create content that is not only seen, but also captivates and converts. Not ‘just’ a TV commercial, or posting cut-downs on social media, but creating social-first assets that fit the specific platforms. Traditional agencies, with their strong focus on TV and mass media, often miss the mark here. They have not sufficiently adapted to the specific needs of the different platforms and the behavior of today’s digital-first audiences.
More and more agencies, including us at team5pm, are trending towards a focus on social. Brands are looking for partners who help them navigate through the complex digital world, often with a limited budget per platform. That’s why social agencies with in-depth knowledge of the platforms are growing so quickly and taking over from the traditional advertising agencies. Social agencies are redefining what advertising can be, taking an online-first approach that better suits the needs of today’s consumers.
It is time that we as an industry recognize this change and respond to it. So, why on earth do social agencies make commercials? Because they understand how to look at advertising in the digital age.
