Q3 2023 Meta Platforms Earnings

Investments
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Summary of Tinuiti Digital Ads Benchmark Report Q3 2023:

Meta Platforms

  • Meta ad spend rose 19% year-over-year versus 9% growth in Q2 2023, strongest growth since Q4 2021 for Tinuity advertisers.
  • Meta impressions rose 46% year-over-year(Q2 2023:+44%)
  • Meta Platforms CPM fell 19% year-over-year(Q2 2023:-20%).
  • Advantage+ accounted for 23% of retail spend on Meta ( Q2 2023: 19%).

Facebook

  • Facebook ad spend rose 16% year-over-year, (Q2 2023: 2%) as year-over-year comps got easier.
  • Facebook CPM declined 20% year over year(Q2 2023: -25%)
  • Facebook impression rose 46%(Q1 2023: 37%), as composition of Reels videos and overlay grew to account to 12% of Facebook ad impressions.

Instagram

  • Instagram impression rose 41% year-over-year (Q2 2023: 84%)
  • Ad spend grew 25% year-over-year (Q2 2023: 31%).
  • Instagram CPM declined 11% year-over-year(Q2 2023: -29%).
  • Instagram Reels CPC was 13% lower than that of Instagram Feeds, compared to 19% in Q1 2023.

TikTok

  • TikTok CPM declined 8% year-over-year(Q2 2023:-4%).
  • Impression rose 21% year-over-year (Q2 2023: +16%).
  • Ad spend rose 12% year-over-year ( Q2 2023: +11%)

My thoughts

  • Meta Q2 revenue may grow by more than 19%(ad spend growth rate) as it has been the case in the past four 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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