Social media algorithms have revolutionized the advertising landscape, creating a more meritocratic environment that many within the industry have been slow to recognize, according to Gary Vaynerchuk, CEO of VaynerMedia. Speaking at the Cannes Lions festival, a key event in the advertising industry, Vaynerchuk reflected on how social media has evolved from its early days.

“In the past, social media was akin to email marketing,” Vaynerchuk remarked in an interview with CNBC’s Tania Bryer. He noted that brands once focused on accumulating followers, with the expectation that a portion of those followers would see their posts. However, with the advent of AI-driven algorithms over the past few years, content now finds its audience, rather than the other way around.

He highlighted TikTok’s “For You” page as a prime example, where the platform’s algorithm curates a personalized stream of videos for users. Vaynerchuk pointed out that even someone with no prior social media presence can achieve significant reach with a single post, thanks to these algorithms.

“This shift has democratized content creation,” Vaynerchuk observed. “For the first time, it’s possible to post something without spending on amplification and still reach millions. This is a profound change in marketing.”

Despite these advances, Vaynerchuk criticized the advertising industry’s continued reliance on traditional formats like print ads and 30-second commercials. He emphasized that brand building now occurs on social media, urging brands to adapt or risk losing market share to more agile competitors.

In a related discussion at Cannes Lions, Elon Musk, CEO of X (formerly Twitter), addressed his contentious relationship with advertisers, clarifying that his controversial remarks about advertisers were tied to his commitment to free speech on the platform.