Q2 2023 Meta Platforms Earnings

Investments
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Summary of Tinuiti Digital Ads Benchmark Report Q2 2023:

Meta Platforms

  • Meta ad spend rose 9% year-over-year versus a flat growth rate in Q1 2023.

  • Meta impressions rose 44% year-over-year(Q1 2023:+42%), helped by Reels.

  • Meta Platforms CPM fell 25% year-over-year(Q1 2023:-30%).

Facebook

  • Facebook ad spend rose 2% year-over-year, the first positive growth in the last four quarters(Q1 2023:-4%)

  • Facebook CPM declined 25% year over year(Q1 2023: -32%)

  • Facebook impression rose 37%(Q1 2023: 42%)

Instagram

  • Instagram impression rose 84% year-over-year(Q1 2023: 45%)

  • Ad spend growth on Instagram more than doubled to 31% year-over-year from 15% in Q1 2023, aided by Instagram Reels and Explore Grid Home placements.

  • Instagram CPM declined 29% year-over-year(Q1 2023: -20%).

  • Instagram Reels CPC was 13% lower than that of Instagram Feeds, compared to 19% in Q1 2023.

TikTok

My thoughts

  • Meta Q2 revenue may grow by more than 9%(ad spend growth rate) as it has been the case in the past three quarters.

  • It’s good that Instagram CPM is declining faster than TikTok’s as it could result in increase demand for Instagram ads in the long-run.

  • Its good that Instagram impression is rising faster than the decline in CPM as this could result in more ad spend.

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