6,294
edits
Meta Platforms:Quarterly Results/2024 Q3: Difference between revisions
Meta Platforms:Quarterly Results/2024 Q3 (view source)
Revision as of 10:56, 22 October 2024
, 22 October 2024→Pricing insights
| Line 206: | Line 206: | ||
* Overweight: $660->$670: Cantor Fitzgerald pointed out that Q4 revenue guidance of $48 billion is needed for the shares to outperform on the print<ref name=":1" />. | * Overweight: $660->$670: Cantor Fitzgerald pointed out that Q4 revenue guidance of $48 billion is needed for the shares to outperform on the print<ref name=":1" />. | ||
== | == Advertising spend and pricing insights == | ||
=== Revealbot Q3 insights indicate that Meta's CPM is up y/y and q/q === | |||
* Revealbot data indicates that Facebook's CPM has grown by around 10% Q/Q to around $11 in Q3. A similar trend can be seen for Instagram<ref>https://seekingalpha.com/article/4726568-meta-platforms-earnings-revenue-upside-social-media-empire-looks-exhausted</ref>. | * Revealbot data indicates that Facebook's CPM has grown by around 10% Q/Q to around $11 in Q3. A similar trend can be seen for Instagram<ref>https://seekingalpha.com/article/4726568-meta-platforms-earnings-revenue-upside-social-media-empire-looks-exhausted</ref>. | ||
| Line 237: | Line 238: | ||
=== Competition for fewer consumer dollars is a reason for the uptick in CPM/CPC === | |||
* This year has seen a rise in CPC/CPM as advertisers compete for fewer consumer dollars. “The biggest challenge this year is the rising costs in CPCs and CPMs across ad platforms,” said Duane Brown, founder of performance marketing shop Take Some Risk. “Even if you don’t have Temu in your ad auction, everyone is fighting for fewer consumer dollars.”<ref>https://digiday.com/marketing/buyers-hope-a-proposed-tariff-on-chinese-goods-will-disrupt-the-temu-and-shein-ad-blitz-and-lower-meta-cpms/</ref> <br /> | * This year has seen a rise in CPC/CPM as advertisers compete for fewer consumer dollars. “The biggest challenge this year is the rising costs in CPCs and CPMs across ad platforms,” said Duane Brown, founder of performance marketing shop Take Some Risk. “Even if you don’t have Temu in your ad auction, everyone is fighting for fewer consumer dollars.”<ref>https://digiday.com/marketing/buyers-hope-a-proposed-tariff-on-chinese-goods-will-disrupt-the-temu-and-shein-ad-blitz-and-lower-meta-cpms/</ref> <br /> | ||
=== Rockerbox ad spend insights indicate that ad spend will likely increase going into the holiday season and that Meta's return on advertising spend has decline this year === | |||
Rockerbox is a marketing measurement solution firm that tracks over $5.9 billion in advertising spend across channels such as Meta Platforms, Google and TikTok<ref>https://www.rockerbox.com/</ref>. Its [https://www.youtube.com/watch?v=YnCDs6RUp64 recent insights] which cover the period July 2023 to July 2024 established the following; | |||
==== Spend is likely to increase going into the holiday season ==== | |||
* According to Rockerbox’s CEO Ron Jacobson, their projections and that of their customers indicate that '''spend is likely to increase going into the holiday season.''' | |||
==== Large spenders are reallocating the budgets towards higher-performing channels ==== | |||
* Small brands (whose spend ranges from $5 milllion to $15 million) are seeing stable performance while large brands (those with over $35 million) are reallocating their spend towards higher-performing channels (minute 8:00). | |||
* Ad spend on Meta platforms is up 4.32% y/y and 0.52% m/m. | |||
* Ad spend on Google is up 5.18% y/y and 2.05% m/m. | |||
* Ad spend on TikTok is down 3.6% y/y and 2.53% m/m, driven by big spenders (those that spend more than $35 million). | |||
==== Meta has been a winner in pricing but its return on ad spend has declined ==== | |||
* '''Meta's return on ad spend (ROAS) has declined 12% compared to July 2023''' while its cost per acquisition (CPA) has risen 28%. | |||
* Google's click through ratio (CTR) has declined 19.93%. | |||
* TikTok's CTR has increased by 5%. | |||