Growth limit for social media has been hit
Social media usage has peaked globally, and the trend has been declining for three years. These are the surprising findings published in the Financial Times a few days ago. The statement is based on data collected by the GWI Institute for Consumer Research.
According to the data, the average time spent on social media worldwide has decreased by ten percent since 2022. Only in the US is there still growth. This would be bad news for the beneficiaries of the market, estimated at $700 billion (€604 billion), such as Meta and TikTok. Their revenue depends on keeping people on their platforms for as long as possible.
Filling a void
According to GWI data, the platforms now serve primarily to fill “dead time” with short videos. These are “highly effective in drawing attention to platforms, even though many users know that it is not good for their well-being,” Noske explains the trend.
Rise of AI
Professionally produced content such as videos is increasingly being generated by artificial intelligence (AI). The programs know better than any human being what stimuli need to be used to attract attention. And “owning” the user is the business model of the platforms.
But there is a downside. “Some AI tools increase user interaction and the volume of content generated, but at the same time reduce the perceived quality and authenticity,” researchers found in a scientific study earlier this year. Authenticity, however, is important.
New players
According to technology consultant Carlo de Marchis, conflicts could arise that could become existential for the platforms. New players such as ChatGPT are attempting to replace the classic platforms as the space through which users access the internet and where they spend their time: “It's a power game. ChatGPT, Claude, Gemini, and Perplexity want to become the layers that mediate everything we do online.” The winners will shape the next decade of digital life.