A new report from Taboola and Qualtrics is turning heads in marketing departments across the country. According to the findings, nearly 75% of advertisers say they’re seeing fewer results from social media ads—even as their spending continues to climb. That’s not just a small bump in the road. Over 300 U.S.-based brand and agency advertisers were surveyed, and most reported that the drop in return on investment (ROI) is hitting more than 30% of their budgets. That’s not pocket change.
More Money, Fewer Results
Social media platforms have long dominated digital ad strategies. Industry forecasts expect global social ad spending to hit $239 billion this year and $273 billion by next. But those numbers don’t tell the whole story.
The issue? Results are slowing down.
Advertisers point to three main culprits:
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Audience saturation – There are only so many people to target.
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Rising ad costs – CPMs (cost per thousand impressions) are climbing fast.
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Ad fatigue – Users are tuning out repetitive messages.
It’s the perfect storm for declining performance. And brands are taking notice.
Shifting Gears: Where the Budgets Are Going
Instead of pouring more money into a leaking bucket, over 80% of advertisers surveyed are branching out. They’re looking beyond Facebook and Instagram. More than half are already investing in alternative digital channels, including:
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Native advertising – Ads that match the look and feel of the content around them.
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Search ads – Targeting users based on keywords and intent.
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Content recommendations – Suggesting relevant articles or videos to drive traffic and conversions.
These aren’t just experiments. They’re deliberate shifts aimed at squeezing more value out of marketing dollars.
The Taboola Perspective
Taboola CEO Adam Singolda summed it up bluntly: “Just throwing more budget at social doesn’t mean you’ll get better results. Advertisers need to think smarter, not spend harder.”
That’s easier said than done, but the message is clear. Blind loyalty to social platforms could be costing brands more than they realize.
What’s Behind the Numbers
The study, titled “The State of Performance Marketing: Trends in Declining ROI”, was led by Qualtrics and focused on a diverse sample of U.S.-based advertisers. It’s the latest sign that performance marketers are reassessing their priorities.
Social platforms aren’t going away, but they’re no longer the one-stop shop for digital advertising. New strategies are emerging, and agility is becoming a serious advantage.
So, What Now?
If you’re running campaigns and seeing returns dip, you’re not alone. This isn’t just happening to a few unlucky marketers. The data says it’s widespread.
Advertisers are getting smarter about where they put their money. The playbook is changing. Social still matters—but it’s no longer the whole strategy.