Strategic Sips

The rapid growth that Instagram and Twitter experienced during the pandemic seems to have tapered off, with reports indicating a decline in usage. The drop has led declines in ad revenue and a swath of layoffs within the tech sector.

“The Age of Social Media is Ending” – The Atlantic

“Mark Zuckerberg explains why so many tech companies are doing layoffs right now” – Business Insider

Even in a recent episode of Tim Ferris’s podcast, he quickly remarked on the decline of social media, specifically text-based platforms like Twitter.

To put it more accurately, the landscape is shifting, with more emphasis on short form videos and less on traditional text-based platforms like Facebook. This likely explains the rise in Tiktok, which has shaped the trend and thrives on content creators (i.e. influencers) posting quick videos.

But the drop off in time spent on social media may hint at other factors. One of those being more focus on mental health.

Concerns about mental health have come to the forefront of social media discussions, particularly among younger demographics. Users are more mindful of how much time is being spent on each platform and have prompted them to reevaluate their habits.

There could also be sensory fatigue. Instagram and Tiktok’s content is infinite and overloading is easy to do. At some point users (me included) passively scroll mindlessly. Because of this travel is back and people seem to be ready to prioritize real-life experiences over online interactions.

Meanwhile, advancements in AI continue to progress, potentially leading to concern or distrust among users. The upcoming presidential election is likely to exacerbate these concerns, maybe leading them to unplug from platforms for a period of time, especially with the launch of OpenAI’s new video generator, Sora.

However, this does not diminish the importance of social media and digital tools to the beverage industry. Social media is the top reason consumers hear about and engage with a brand, and that is unlikely to change anytime soon.

It underscores the need for brands to focus on their core branding and values to connect with their target audience. Authenticity, as ever, remains paramount.

Although brands may not experience the same level of organic growth and engagement metrics as before, this reset could present an opportunity for brands. Re-focus your efforts on video content, if you haven’t already, and develop a clear and consistent plan to bring in more consumers.

After all, marketing is all about meeting the consumers where they are.