Advertisers are paying to promote the brands that they’re trying to sell to consumers.
But they’re doing so at a lower rate than they’ve done for years, and they’re seeing little return on that investment.
That’s because the ad market is saturated.
According to an analysis from analytics firm Nielsen, ads spend on social media have fallen nearly 40% since the start of 2017, but the amount of money spent on digital advertising hasn’t budged.
The decline is driven by two factors.
First, advertising dollars are being spent on more video and other types of content than ever before.
According the research firm AdAge, that’s led to a “decline in the percentage of advertising revenue going to digital.”
It’s an even bigger decline when you consider that video ads are also falling.
In 2020, according to AdAge’s estimates, about 75% of ad revenue went to digital.
That dropped to about 52% last year, and this year, that number has dropped to 51%.
In other words, there are fewer people buying ads on social, mobile and video in 2018 than there were in 2020.
Second, there is a decline in the number of people who are watching videos on mobile devices, which in turn leads to less advertising spending.
“The amount of advertising spending on mobile is declining,” said AdAge research director Chris Wilson.
“The reason for this is that consumers are not spending their time on these devices, and that’s where the ads are going.”
The trend is a reversal from the years before, when digital ads accounted for about 60% of advertising.
That figure was about to reach 80% by 2022, when the digital ad market was projected to account for about 90% of all ad spending.
The market has been flat for a year, though.
While the average American spends $5.16 on advertising each month, they’re spending just $3.86 on digital ads.
The decline in digital advertising spending has a lot to do with changes in the way people consume media.
“It’s not as if they’ve stopped viewing television,” Wilson said.
“They’re still watching television, but their viewing patterns are changing.”
There are also a lot of other factors at play.
“Our data shows that consumers have increasingly changed their viewing habits over time,” Wilson continued.
“A lot of people have their devices at home, and so they’re more likely to watch their favorite shows on their phones or their tablet.
So it’s a little bit more difficult to spend as much as they used to spend.”
While the overall number of Americans watching videos and watching video content has decreased, there’s been a big spike in people who watch digital content.
According, the study, there was an increase in the amount that people watch videos on platforms like YouTube and Hulu.
In 2018, roughly 13 million people were watching videos online, which increased to 18 million in 2019.
That number increased to 21 million in 2020, and in 2021, it was 22 million.
That means there were more people watching videos from online platforms.
But the increase was offset by the decline in people watching video on mobile, which is down by about 10% from the previous year.
But that drop in viewership isn’t just a result of people not watching video online.
There are other factors as well.
“There are a lot more factors at work that have contributed to that,” Wilson explained.
“If you look at the amount spent on the Internet, for example, it’s not just the video itself that has changed, it is the way that you interact with it.
So there’s a whole suite of factors that are contributing to that.”
It’s no surprise that there are many advertisers that are investing in digital ads in 2018, but for brands and advertisers that aren’t, there could be some major changes coming down the road.
The future of ads isn’t exactly looking bright for beauty brands, and the trend is getting a little worse every year.