Fresh insights from Roy Morgan Research have shed new light on the evolving landscape of consumer behavior, highlighting significant shifts in the way people interact with brands and media. According to a recent report, the global advertising industry is facing an unprecedented challenge, as consumers increasingly rely on digital platforms for information and entertainment. This seismic shift has far-reaching implications for companies, research communities, and markets worldwide.
At the forefront of this transformation is the rise of social media, with platforms like TikTok and YouTube becoming essential channels for brand engagement and customer acquisition. Roy Morgan Research notes that 71% of Australian consumers, for example, use social media to discover new brands, with 44% using the platforms to influence purchasing decisions. These statistics underscore the critical importance of social media marketing for companies seeking to stay relevant in a rapidly changing media landscape.
Marketers are responding to this shift by investing heavily in digital advertising, with eMarketer predicting that global digital ad spend will reach $655 billion by the end of 2023. This represents a significant increase from 2020, when digital ad spend was valued at $543 billion. As companies continue to prioritize digital channels, they must also adapt their strategies to account for the evolving preferences and behaviors of their target audiences.
The impact of Roy Morgan Research's findings on the social and behavioral domain is multifaceted. For companies, the ability to effectively engage with consumers on social media is critical to driving sales and market share. Research communities, meanwhile, must adapt their methodologies to account for the changing media landscape and the evolving preferences of their target audiences. Markets and policy environments are also being influenced, as governments and regulatory bodies seek to ensure that digital advertising is transparent, accountable, and compliant with emerging regulations.
Major advertisers, such as Coca-Cola and PepsiCo, are already investing heavily in social media marketing, with the two companies combining to spend over $10 billion on digital ads in 2022 alone. This represents a significant increase from 2020, when the two companies combined to spend just $6 billion on digital ads. As the industry continues to prioritize digital channels, these companies must also prioritize their social media strategies, investing in targeted advertising and engaging with their target audiences through a range of digital platforms.
The rise of social media and the increasing importance of digital advertising in the advertising industry are part of a broader pattern of transformation in the media landscape. The proliferation of streaming services, for example, has led to a significant shift in the way people consume media, with 73% of Australians using streaming services to access entertainment content. This shift has also had a profound impact on the advertising industry, with companies seeking to adapt their strategies to account for the changing media landscape.
Why it matters: this intelligence reflects a shift that researchers and analysts should follow closely.
Billy Odell Tucker-Robinson is the founder and host of Banking With Billy, an independent financial intelligence platform covering markets, stocks, AI, crypto, and world news. Billy operates a 24/7 live AI radio and Stock TV platform, hosts a growing Discord community, and produces daily content on YouTube @BankingWithBilly.
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