Platform Decay: The 'Enshittification' Challenge for NZ Marketers

Wednesday, 11 March 20268 min read2 views

Digital platforms are increasingly seen to degrade user experience and advertiser value over time, a phenomenon dubbed 'enshittification'. This trend, highlighted by consumer advocacy groups like the Norwegian Consumer Council, signals growing regulatory attention and demands strategic adaptation from marketers reliant on these channels.

What Happened

•The concept of 'enshittification' describes the gradual decline in quality and user experience on digital platforms, often driven by profit maximisation.
•Initially, platforms attract users and content creators, then extract value from them, before finally prioritising advertisers and shareholders.
•The Norwegian Consumer Council has critically observed this trend, suggesting a lighter but impactful approach compared to other regulators.
•This degradation can manifest as increased advertising load, reduced organic reach, and algorithmic changes that favour platform revenue over user utility.
•The Mumbrella article dated 10 March 2026, references this concept, noting its ironic yet painful relevance to digital marketing.
•Consumer advocacy bodies are increasingly scrutinising these practices, indicating potential future regulatory interventions.

Why It Matters for NZ Marketers

•NZ marketers heavily rely on global digital platforms (e.g., social media, search) for audience reach and engagement, making them vulnerable to platform changes.
•Decreased organic reach and increased ad load can diminish campaign effectiveness and raise customer acquisition costs for NZ businesses.
•Consumer trust in platforms may erode, impacting how NZ audiences perceive brands advertised on them.
•Smaller NZ businesses with limited budgets may find it harder to compete as platforms prioritise larger advertisers or paid placements.
•Regulatory discussions abroad, like those from the Norwegian Consumer Council, often precede similar considerations by NZ consumer protection agencies.
•NZ brands need to diversify their digital strategies to mitigate risks associated with over-reliance on any single platform's fluctuating quality.

Strategic Implications

•Prioritise building owned media channels (e.g., websites, email lists) to reduce dependence on third-party platforms.
•Invest in first-party data strategies to maintain direct customer relationships and insights, bypassing platform data limitations.
•Diversify media spend across multiple platforms and channels, including traditional media, to spread risk and reach.
•Focus on creating high-quality, valuable content that can cut through increasing platform noise and maintain audience engagement.
•Advocate for greater transparency from platforms regarding algorithmic changes and advertising policies.
•Monitor global regulatory developments closely, preparing for potential local impacts on digital advertising practices.

Future Trend Signals

•Increased regulatory scrutiny and potential legislation targeting platform practices that degrade user experience and advertiser value.
•A shift towards decentralised digital ecosystems and alternative platforms offering greater transparency and user control.
•Growing consumer demand for ad-free or less intrusive digital experiences, potentially driving subscription models.
•Greater emphasis on brand safety and ethical advertising practices as platforms face pressure to improve their environment.

Sources

Enshittification as an art form — Mumbrella

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Editorial note: This analysis is original, AI-assisted editorial content. All source material is attributed with links. No full articles are reproduced. Short excerpts are used under fair dealing principles.