Summary of Q1 2024 Tinuiti Digital Ads Benchmark Report:
- Meta ad spend was up 16% y/y in Q1 2024 (Q4 2023:+13%), CPM was flat y/y (Q4 2023: -3%) while impressions rose 15% y/y (Q4 2023:+16%) driven by Reels.
- Facebook ad spend rose 9% y/y (Q4 2023:+8%), impressions fell from growth of 14% in Q4 2023 to 11% in Q1 due to tougher comparisons while CPM fell 2% (Q4 2023:-5%)-the smallest decline in the past seven quarters.
- Instagram ad spend grew by 34% y/y in Q1 (Q4 2023:+27%), CPM rose 6% (Q4 2023:+2%) while impressions rose 27% y/y (Q4 2023:+24%) aided by Reels and Explore.
- TikTok ad spend was up 21% y/y in Q1 (Q4 2023:+64%), driven by a 6% growth in impressions (Q4 2023:+44%) and 15% rise in CPM (Q4 2023:+14%).
- Tinuiti tracks ad spending by Temu on Google Search ads space and according to them, Temu’s
presence faltered in the last three weeks of the quarter.
Assessment
The Tinuiti report suggests continued rebound in ad spend and pricing across Meta Platforms. It’s good to see TikTok’s ad spend and impressions decellerating while that of Instagram are accelerating. It could confirm reports that TikTok is losing ground to Instagram. In Q4 2023, Meta revenue outperformed ad spend in the Tinuiti report by 12%. A similar trend could repeat itself.