A Taboola, global performance company at scale for advertisers, announced today anew reportbased on a survey conducted in partnership with theQualtrics, world reference in experience management. The study reveals a paradox in the digital advertising landscape: although investments in ads on social networks are expected to reach an impressive $239 billion in 2025 and $273 billion in 2026, almost 75% of marketing professionals report a decline in the return on these investments. The data raises an alert about the challenges faced by advertisers and points to new opportunities to optimize campaigns and maximize results.
Key insights from the report The Pulse of Performance Advertising: Diminishing Returns include
- Most of these performance marketing professionals indicated that diminishing returns affect more than 30% of their investments.
- Performance-focused professionals are facing diminishing returns on social media due to audience saturation, to the increase in costs and to ad fatigue.
- More than 80% of performance marketing professionals use various strategies to combat diminishing returns, more than half are expanding their investments to other digital channels beyond social media ads.
"Although social media represents a large part of performance advertising budgets, many professionals are facing a barrier in the form of diminishing returns, said Adam Singolda, CEO of Taboola. "Simply increasing investment is not yielding better results". The findings of this report show the difficulty of maintaining performance over time, leading professionals to seek solutions that can help them overcome this challenge.
The reportThe Pulse of Performance Advertising: Diminishing Returnsit is based on a survey with more than 300 advertisers, including brands and agencies in the United States.
