Is Social Media Dying? And What’s Next?

Social media once took the world by storm! Platforms like Facebook and MySpace were all people talked about. Subsequently, other social media platforms such as YouTube, Instagram, Snapchat, and Twitter also gained significant popularity. And who can forget TikTok and how quickly it became popular?

But it’s 2024, and the big question now? Is social media dying? This question is something most people are pondering, and for the sake of this newsletter, we’re one of them. But perhaps the bigger question that should be asked is, what’s next?

All of us know social media is essential for SaaS companies. It helps them reach out to new customers, build meaningful relationships, test new concepts, and so much more. So, if it’s time for social media to rest in peace, what impact will it have on SaaS companies?

Let’s dive in and find out more! 

Is Social Media On Its Deathbed?

Before we start making any assumptions, let’s look at some social media statistics to proceed with an unbiased approach. Recent figures from Forbes have shown that more than half of the world’s population is on social media. That’s 4.9 billion social media users worldwide, or 63% of the population, to be exact!

What’s more, platforms like Facebook, Instagram, WhatsApp, and TikTok all have had over 500 million monthly users in 2023. It seems like a good thing, right? But is it? Some reports have claimed that social media platforms founded in the 2000s are now struggling and facing multiple challenges pertaining to their growth. 

1.   X Isn’t Twitter! 

Recent figures have shown that the X, formerly known as Twitter, made 88% of its revenue from advertising in 2021. However, when Elon Musk took over the platform, he changed quite a few things. The platform was rebranded, staff was laid off chaotically, and hate speech increased.

What impact did it have on the platform? Well, their revenues certainly took a bit. In 2021, Twitter had earned $5 billion, $4.4 billion of which was from advertising alone. But, in 2022, X’s revenue had dropped to $4.4 billion, and by 2023, it dropped even further to $3.4 billion, out of which 73% was from advertising. So, are the marketers heading for the door?

2.   Facebook Not As Big As It Once Was

Facebook, no doubt, is still thought of as the largest social media platform there is. This is true to a certain extent, but what’s worth knowing is that social media statistics have shown it was only able to add 300 million users over the past three years. At first, this might sound impressive, but wait till you hear this. From 2015 to 2017, Facebook grew by 700 million users.

3.   Drops In Instagram Reach

Instagram was once one of the go-to platforms for many and still is for some. But this platform, too, has seen better days. Social media statistics about the platform have shown that reach in 2023 has declined across all content formats. In comparison to 2022, a 76.88% drop was seen in Reels.

Changes in the algorithm and the format that brands and content creators use have been identified in reports as contributing factors. But that’s not all. Post and Stories reach also declined by 16.40% and 11.80%, respectively. 

4.   TikTok Is Still Going Strong

The short-video-sharing platform, ever since its emergence, has been on an upward trajectory and is still looking strong in 2024. Social media statistics have shown that the platform generated $14.3 billion in revenue in 2023, which translates into a 52% year-on-year increase.

As for user activity, TikTok had 1.5 billion active monthly users in 2023. Whereas other platforms are experiencing a decline in reach and user activity, social media predictions show that TikTok is expected to reach 1.8 billion active users by the end of 2024. Additionally, the 1.5 billion active users on TikTok was a 16% increase from the previous year.

Given this, we can say that major social media companies are on the decline. One factor that stands out among them is that they offer multiple content formats. Platforms that offer more niche-based content are expected to thrive.

So, is social media dying? It would be premature to say that the death of social media is around the corner. But the landscape is changing as far as the evolution of social media is concerned.

What’s Next, And What Does It Mean For SaaS Companies?

When it comes to the evolution of social media, we see that the rise of niche-based is driving “what’s next.” These platforms are tailored to specific user interests, allowing them to find relevant content and have a more relevant and engaging experience on the platform.

In addition, these platforms facilitate an authentic sense of community and allow individuals to have meaningful conversations. These factors are also driving the rise of social media alternatives like Discord, Lemon8, and BlueSky.

So, what does this mean for SaaS companies?

Well, you see, social media is essential to SaaS companies as it allows them to reach out to their target audiences, shape the brand narrative, and help them build meaningful relationships with the customer. However, for this to work, SaaS companies must be aware of predictions for social media platforms and the overall evolution of social media.

Given that social media users are shifting to niche-based platforms that provide a more personalized experience, it’s essential for SaaS companies to implement that in their marketing strategies. This may involve tailoring messages for relevance and leveraging new technologies that make outreach efforts more immersive.

Tailoring marketing strategies in line with the evolution of social media can help SaaS companies optimize the user experience and increase engagement and conversions. In addition, it can also help them ensure transparency and allow them to build meaningful relationships, which could translate into a competitive edge.

Final Thoughts

Is social media dying? The short answer is no—not so soon. However, the rise of niche-based platforms as opposed to mainstream ones is becoming evident. Given this, SaaS companies must understand and leverage social media predictions for niche-based platforms. Doing so would allow them to reach out to an audience, build meaningful connections, and achieve business objectives.

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