Is the decline in social media usage a permanent shift or a temporary dip?

The decline appears structural, with average daily time spent dropping 10% since its 2022 peak. This trend is most pronounced in the 16-25 demographic, driven by a 25% decrease in users utilizing these platforms for social connection since 2014.

Where is consumer attention shifting as social media engagement fades?

Engagement is migrating back to high-quality broadcast content and digital audio. Australian Free-to-Air TV viewing increased by 1.2% in 2024, while digital radio platforms have reached the profitable scale necessary to capture displaced social media audiences.

What does this mean for current digital advertising budgets?

The two-thirds of Australian ad spend currently allocated to Search, Display, and Classifieds faces diminishing returns as social participation growth stalled at 0.5% in 2024. Advertisers must account for the fact that less than 50% of digital ad spend currently reaches consumers, necessitating a pivot toward higher-growth digital TV and audio channels.

How is AI impacting the value of major digital platforms?

The rise of low-quality AI-generated content is actively devaluing social platforms and accelerating user disengagement. Users are increasingly opting for subscription-based AI applications to find the personable interactions that have declined on traditional social networks.

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Social media decline will open new opportunities for digital audio and TV

Average daily social media usage fell to 2 hours 20 minutes as engagement peaks, shifting ad opportunities to local media.

David Kennedy · Venture Insights9 October 2025Period: October 20254 min read

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Decline in average time spent on social media since 2022

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Average daily time spent on social media in developed nations

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Abstract

The Financial Times recently reported survey data across developed nations showing a significant decline in time spent on social media since 2022 (with the exception of the United States). This is consistent with our own observations over the last year - that the value of social media participation has peaked. If sustained, this will have big implications for the digital advertising landscape. Digital Search, Display, and Classifieds now collectively account for two-thirds of Australia advertising spending (dominated by global media platforms), but declining usage ultimately means lower ad revenues. We expect this to flow through into higher relative growth for radio industry and television industry digital offers, which have now achieved critical scale and are poised to grow fast.

Key Takeaways

Average daily time spent on social media has declined by 10% since its 2022 peak, particularly among the 16-25 demographic.
Social media is becoming 'less social' and more passive, with a 25% drop in users staying in touch with friends since 2014.
The proliferation of 'AI slop'—low-quality AI-generated content—is devaluing platforms and driving user disengagement.

Social media decline will open new opportunities for digital audio and TV

Abstract

Key Takeaways

What's Inside

Social media now in decline

The role of AI in social media decline

Impact on digital platform advertising

Digital advertising revenue scenarios

Why this is important - an opportunity for local media

Frequently Asked Questions

Abstract

Key Takeaways

What's Inside

Social media now in decline

The role of AI in social media decline

Impact on digital platform advertising

Digital advertising revenue scenarios

Why this is important - an opportunity for local media

Frequently Asked Questions

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