Tinuti Digital Ads Benchmark report signals a strong Q4 for Meta
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Ad spent on Meta Platforms by Tinuiti advertisers rose 15% y/y in Q4 2024 (Q3 2024: +9% y/y) aided by softer comps, CPM grew 5% y/y (Q3 2024: -3% y/y) while impression growth slowed to 9% from 12% in Q3 2024.
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Ad spend on Facebook rose to 11% in Q4 from 5% in Q3 also aided by softer comps, CPM was out of red during the quarter as it was flat-the first time since Q3 2022, impression rose 11% y/y (Q3 2024: +20% y/y).
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Spend on Instagram ads jumped 20% y/y in Q4 from 14% in Q3 despite tougher comps, CPM was up 15% y/y (Q3 2024: +19% y/y) while impression rose 5% y/y (Q3 2024: -4% y/y).
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Despite Advantage+ Shopping campaign spend holding steady (accounted for 34% of retailers’ ad spend on Meta), advertisers experienced issues with it during the quarter.
"Some advertisers experienced periods of under or over-delivery in Q4 that couldn’t be explained. As such, some advertisers are reassessing their investment in ASCs, and Meta itself has backed off of recommending advertisers put all conversion focused ad spend into the campaign type, " Tinuiti pointed out.
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Ad spend growth on TikTok decelerated from 28% in Q3 to 13% in Q4, largely due to very tough comps- advertisers were largely unmoved by uncertainty on TikTok ban, CPM was up 8% y/y (Q3 2024: +14% y/y) while impression grew 4% (Q3 2024: +12% y/y).
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Ad spend on Google Search rose 10% y/y (Q3 2024: +11% y/y), click through rate (CTR) rose 1% compared to flat growth in Q3 while cost per click (CPC) was up 9% (Q3 2024: +8%).
Assessment
In the most recent four quarters, Meta revenue outperformed Tinuiti Meta ad revenue by an average of 11.22%. Therefore, it’s likely that Q4 will be another strong quarter for Meta.
It’s not good to hear issues with Advantage+ shopping given that it brings significant revenue to Meta. Also, the problems could signal that GenAI may be interfering with the core AI.