ABSTRACT
In view of the increasing popularity of social media, brands have turned to social media marketing to drive sales. As a result, sponsored advertising is booming, and businesses continue to invest in sponsored ads to reach target groups and maximize profits. However, the widespread assumption that higher advertising spend guarantees higher returns has proven to be inaccurate. Recent studies establish that incremental spending yields lower engagement and conversion rates over time. This paper argues that sponsored advertising is ineffective as a primary marketing strategy and should be repositioned as a supporting tool. Drawing on existing literature and industry reports, it shows how ad fatigue, user apathy, irritation, and algorithmic bias, among other factors, undermine the success of sponsored ads. Finally, the paper proposes a conceptual test-learn-amplify model in which brands first test content organically, analyze performance, and amplify only high-performing content with paid promotions.
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