Summary of Tinuiti Digital Ads Benchmark Report Q4 2023:
- Meta ad spend rose 13% y/y (Q3 2023: +19%), impressions rose 16% y/y(Q3 2023:+46%) while CPM fell 3% y/y(Q3 2023:-19%) as advertisers run up against easier comparisons in the previous year.
- Facebook ad spend rose 8% y/y (Q2 2023: +16%), CPM declined 5% y/y(Q2 2023: -20%) while impression slowed to 14%(Q1 2023: +46%).
- Instagram ad spend grew 27% y/y (Q3 2023: +25%), CPM rose 2% y/y (Q3 2023: -11%)-the first y/y growth since Q3 2022, impression slowed to 24% from 41% growth in Q3 2023.
- Instagram Reels impression remained steady throughout 2023, growing by 11% y/y in Q4.
- TikTok ad spend rose 64% y/y (Q3 2023:+12%)-the fastest growth since Q4 2022 (+84%), impressions grew by 44% y/y (Q3 2023: +21%) while CPM rose 14% (Q3 2023: +8%).
Assessment
It appears weaker comparison periods are coming to an end for Meta, especially on ad spending and impressions. But it’s good to see pricing recovery (supporting analysts’ opinions). What doesn’t look good is TikTok outperforming Meta in all fronts. That said, Meta’s revenue may grow by less than 15% this time round.