Growth of social advertising spend appears to be slowing down reaching $17.9 billion globally during Q1 2019. Despite the figure marking a rise of 26.2%, it represents a slow-down in growth and roughly half compared to Q1 2018.
According to the latest Global Advertising Trends report from WARC, which examined Facebook, Pinterest, Snap, Twitter, Tencent (WeChat/QQ), and Weibo figures, North America continues to be the largest market with $8 billion spent during Q1 2019.
However, overall user growth continues to stall driven by growing distrust in social media companies. Indeed, 50% of consumers believe social media and technology firms hold too much power. Another 70% of US consumers do not trust information shared on social media.
The survey also found that 42.1% of consumers trust influencer opinions and products.
Similarly, time spent on social media hasn’t improved much over the last three years with an average 2 hours a day.
Europe noted some of the strongest slow-down across social media to +1.4% with daily usage declining four minutes to 1.45 hours.
Meanwhile, usage is Asia continues to climb at two minutes to 2.11 hours.
The rising mistrust in social media and online data usage has led at least three-quarters of consumers to limit their online footprint.
“Facebook is looking to diversify its revenue streams with the launch of Libra which, the company says, will not be used directly to enrich the consumer data it has harvested for ad selling purposes,” said James McDonald, Managing Editor, WARC Data.
“However, the cost of advertising on Facebook’s social platforms could feasibly rise if the company proves a relationship between the ads it serves and an increase in Libra-facilitated sales.”
When it comes to eCommerce, 71.1% of consumers are worried about security issues when shopping via social media.