In 2025, social media finds itself at a pivotal crossroads, caught between explosive change and growing pains. More than 5.2 billion people worldwide—about 64% of the global population—now use social media, according to Young Urban Project. Yet despite its ubiquity, familiar giants like X, formerly known as Twitter, are showing clear cracks in the foundation. Reporting from Social Media Today highlights how X’s ad revenue continues to slide in 2025, struggling to hit $2.9 billion, far short of founder Elon Musk’s initial projections. Musk’s early hope lay in moving away from advertising and betting big on subscriptions like X Premium and in-stream payments, but user uptake remains weak and regulatory delays have put “X Money” on hold. This has left X financially dependent on ad dollars, even as one in four marketers—according to Marketing Week—plan to decrease or cut their spend on the platform next year. To keep X afloat, the company has merged with xAI, Musk’s artificial intelligence startup, which can divert its profits and keep the social network solvent—for now.
While legacy platforms waver, other trends are surging. Mobile commerce on social is hitting new highs, with The Retail Exec projecting that nearly one in three people will use social platforms to shop this year. Social commerce drove almost $700 billion in sales globally last year, and Millennials and Gen Z are fueling much of the growth, with TikTok Shop and Facebook leading the way.
Social media content itself is rapidly evolving. Brands are tapping AI to automate responses, personalize service, and analyze shifting audience tastes. According to Sprout Social, over 70% of users are comfortable with brands using AI for customer service, and most say customized help is their top priority in 2025.
Live streaming is another breakout story. Teleprompter.com points out the global live streaming market now exceeds $100 billion, and as of late 2024, nearly 30% of all internet users watch live streams each week, drawn by the authenticity and immediacy of unfiltered broadcasts. Twitch continues to lead gaming streams, but YouTube Live and TikTok Live are broadening reach across music, education, and even commerce, with TikTok Live reportedly surpassing Twitch in total hours watched early in 2025.
To stay relevant, social media platforms now prioritize more authentic, interactive, and commerce-enabled experiences, with AI increasingly doing the heavy lifting behind the scenes. But with usage shifting and trust in platforms increasingly tied to their ability to innovate without sacrificing user privacy or genuine connection, the era of effortless growth is clearly over. Social media’s story in 2025 is one of adaptation, new revenue models, and the race to keep vast, restless audiences engaged in real time.
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