Can VIRTUAL Sustain Its 21% Growth Amid Declining Social Media Engagement and Resurging Active Users?

The virtual economy's explosive growth in 2025 has positioned it as a cornerstone of the digital age, with the virtual events industry alone projected to reach $236.69 billion in market value, driven by a 21% share of events planned as virtual-only. However, this growth faces a paradox: while global social media active users have surged to 65.7% of the global population, engagement metrics across platforms are evolving in complex ways. This analysis explores whether VIRTUAL can sustain its 21% growth trajectory by examining user behavior trends, platform sustainability strategies, and the interplay between engagement dynamics and technological innovation.

The Dual Forces of Growth: Active Users and Engagement Shifts

Global social media user growth remains robust, with 5.66 billion identities and a 4.87% annualized growth rate. By Q4 2025, the average user engages with 6.84 platforms monthly, spending 141 minutes daily on social media. This fragmented attention span underscores the need for platforms to innovate in content delivery and user retention.

However, engagement patterns are shifting. TikTok's dominance in organic engagement-averaging 2.5% per post and peaking at 7.5% for smaller creators-highlights the platform's ability to sustain high interaction despite market saturation. Meanwhile, Instagram's carousel posts outperform other formats with 1.92% engagement, reflecting a preference for visual storytelling. These trends suggest that while overall engagement may not decline, its distribution is becoming platform-specific, requiring brands to adopt hyper-targeted strategies.

Sustainability as a Strategic Lever

Sustainability is no longer a peripheral concern but a core driver of virtual growth. Virtual events, for instance, reduce carbon footprints by up to 94% compared to in-person equivalents, aligning with global ESG (Environmental, Social, Governance) goals. This shift is not merely environmental but economic: 63% of event organizers plan to increase investments in virtual events, recognizing their cost efficiency and scalability.

Businesses are also integrating sustainability metrics into their operations, tracking KPIs like carbon footprint per transaction and water usage to demonstrate accountability. For example, AI-powered tools now enable real-time analytics for virtual events, optimizing energy consumption and reducing waste through digital-first approaches. These innovations not only enhance platform sustainability but also create value for stakeholders by aligning with consumer demand for eco-conscious practices.

Navigating Engagement Challenges Through Innovation

The rise of "vibe" culture and mood-driven content is reshaping engagement strategies. Marketers are increasingly leveraging AI to decode audience sentiment, creating emotionally resonant experiences that transcend fleeting trends. For instance, 41% of organizations test outbound engagements by commenting on creator content, achieving higher engagement when creators reciprocate. This emphasis on authenticity and relationship-building mitigates the risk of declining engagement by fostering deeper user connections.

Short-form video remains a critical engagement driver, with YouTube Shorts and TikTok competing for attention. Brands that balance creativity with platform-specific strategies-such as TikTok's algorithm-driven discovery or Instagram's carousel optimization-are likely to maintain engagement momentum. Additionally, the circular economy model, which prioritizes reuse and recycling, is gaining traction in virtual event design, further reducing environmental impact while appealing to sustainability-conscious users.

The Path Forward: Balancing Growth and Long-Term Viability

VIRTUAL's ability to sustain 21% growth hinges on its capacity to adapt to evolving user behavior and sustainability demands. Key enablers include:
1. AI-Driven Personalization: 50% of meeting planners now use AI for event planning, enhancing attendee experiences through dynamic content curation and smart matchmaking.
2. Cross-Platform Strategies: With users juggling 6.84 platforms monthly, brands must optimize presence across ecosystems, leveraging TikTok's virality and Instagram's visual depth.
3. Sustainability Integration: Platforms like SCOOCS are embedding CO2 calculators and energy-efficient tools, aligning virtual engagement with global climate goals.

While declining engagement on certain platforms may persist, the broader digital economy's shift toward sustainability and AI-driven innovation creates new avenues for growth. The 21% growth in virtual events is not just a reflection of technological adoption but a response to societal priorities, ensuring that VIRTUAL remains a resilient and scalable asset in the digital economy.