Why do we see smart, intelligent world class branded players such as Unilever spending large/ disproportionately large amounts of their A&P budgets on social media versus traditional media? Do you have any insight as to why they might be doing this?
We agree with you, with research evidence building, moving away from traditional media and allocating more budget to social media increasingly seems to be a silly decision for advertisers. However, it may make sense that this is happening. The evidence does take awhile to trickle down into industry practice and the arguments for using social platforms are logical and (at least on the surface) seem appealing, even if they are wrong.
Linear TV audiences are obviously in decline and this has been the case for some time. Even prior to this decline, however, proliferation of channels and fragmentation of the audience across more platforms had meant the “vast and fast” reach benefits that had been the key reason for advertising on TV were becoming less powerful. Advertisers more commonly would split their budgets over more media (which now includes social), just to deliver the cumulative reach they would have once been able to deliver in just a few TV placements. Furthermore, Double Jeopardy applies in media just as it does brand buyer behaviour, so when there are new entrants, they inevitably steal share from the big incumbents (i.e. traditional media).
However, this still doesn’t explain why advertisers are choosing social media as they move away from the traditional options, especially when research tells us that social (and similarly influencer) platforms attract heavy user audiences with high frequency exposures (which, as you allude to in your question, is not all that desirable for brand growth).
From a reach point of view, social media makes impressive claims about the size of their audiences, which is appealing for practitioners.
Social media monetises their offering based on impressions, so it is in their interest to claim as large an audience as possible. But impressions is a long way from being a “clean” measure of audience size. Rather, it is diluted with both the frequency of exposures (2 impressions could be 1 person being exposed twice, or 2 people being exposed) and by ad fraud (i.e. bots and the like, rather that real potential buyers once). Furthermore, social media is not one single “channel”, but rather a massive suite of options. Your ad on Meta, for instance, will not reach the whole Meta audience, but rather a far smaller sub-segment of that audience. So, while on the surface, social media looks like they have large audiences for advertising (potentially providing a return to the “vast and fast” reach Linear TV used to offer), this is sadly not actually the case.
A second argument that social media proponents make is that audiences trust the source of the promotional message more (such as with influencers or friends delivering those messages) than they do the more traditional advertising mediums. And with trust (it is further assumed), comes heightened impacts from the advertising.
Again, this sounds logical, it is just a shame it is not supported by the evidence. Audiences may indeed trust those delivering a social media advertisement, but it is a stretch to say that then makes our brands trusted. And brands do not have to be trusted (beyond being available and thus an acceptable example of the category) in order to be bought.
Related to the trustworthiness of the source of advertising messages, is the suggestion that social media are better able to place advertising adjacent to related content.
The rationale here is that an ad placed within relevant context will be more impactful on its audience. Again, the evidence that this is the case is lacking. Programmatic buying of ad space has technological appeal, promising to reduce wastage by reaching only those people sending digital signals that they are about to buy. However, advertising works by building long term memory structures for the brand, rather than by delivering immediate sales impact. It is therefore helping the brand to establish its Physical Availability, but this is not advertising.
This brings us to another potential reason why advertisers appear to be moving away from traditional platforms and towards social media, and that is because (again on the surface) they look cost effective.
Social media (particularly in the influencer space) can offer a cheap alternative for content creation, although many advertisers also simply re-purpose their video content. However, they also seem to be cost effective based on the money spent and for the sales that are then attributed to that expenditure. In our experience, increasingly advertisers are looking to ROI (either through Media Mix Modelling or simply by looking at sales data). Because social media reaches audience of heavy users who likely would have bought regardless of their advertising exposure, social media can look very efficient, when in actual fact it is successful in delivering on Physical Availability more so than efforts to build memories to nudge sales in the longer term.
The following commentaries, reports and papers on our website may provide some additional relevant reading material on this topic for your interest.
This answer to a sponsor question is about digital advertising more broadly, but has some points about social at the end: What is the Ehrenberg Bass guideline for an effect digital strategy?
This article speaks to the skew of heavy users in social media audiences: What’s Not to “Like?” Can a Facebook Fan Base Give a Brand the Advertising Reach It Needs?
This report looks at social and TV advertising when used in combination: Combining tv and social media advertising beyond 30 report
The following thesis and commentary also covers why social has become so popular, and what it can and importantly what it can’t do for advertising practitioners:
Stand out or get lost. An analysis of social media advertising effectiveness
Social media is not a viable advertising medium yet
E.R.
28 March 2025
Link: https://sponsors.marketingscience.info/frequently-asked-questions/why-do-we-see-smart-intelligent-world-class-branded-players-such-as-unilever-spending-large-disproportionately-large-amounts-of-their-ap-budgets-on-social-media-versus-traditional-media/
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