Tinuiti conducted a study on Facebook ad spend and compared it to other platforms / Digital Information World
Marketing firm Tinuiti recently released a report on Facebook ad referrals, while also discussing data for Pinterest, TikTok and Snapchat.
Advertising is the name of the game for literally every online platform, regardless of their niche. For those who don’t peddle directly in the ads themselves, there’s still a relentless need to invest in the medium so as not to drown in the growing quicksand that is internet irrelevance. . The main reason social media sites like Facebook and Instagram collect user data, other than to use it for their own information, is for the purpose of selling it to advertising agencies. Targeted advertisements are made from the backbone of your personal and private data. So the next time you come across an ad for these cute skinny jeans, just consider them a gift for yourself. So maybe you’ll start to worry about the ramifications of such extensive data siphoning and sharing in an increasingly online world later on, right?
Either way, Tinuiti notes that Facebook, Instagram and WhatsApp’s parent company, Meta, saw ad spend of 10% in Q1 2022, which is a notable drop from the 32% growth that we observed in the fourth quarter of 2021.
Ad impressions for the conglomerate, which measures the number of times an ad appears on one or more platforms, showed a slightly steeper decline from last quarter (from 15% in Q4 to 17% at T1). This does not bode well for the company and its current relevance. However, perhaps breaking down the exact numbers for individual platforms can help pinpoint exactly where the problem lies. To be more specific, I think Facebook itself could be facing a heartbreaking phase of progressive irrelevance. Ad spend on Facebook in particular grew by 6% in 2022, which is a good sign, but it’s also the slowest quarterly growth the platform has seen in a long time; the previous six quarters, to be precise. In turn, impressions also fell by 23% in a single quarter.
Finally, what’s rather interesting is that as Facebook and Instagram are seeing a drop in CPM (cost per mile, or the cost per 1000 impressions on any social media site), other platforms are seeing increases to varying degrees. Specifically, Pinterest, Snapchat and TikTok are some of the platforms that Tinuiti has decided to highlight. Marketers are trying to diversify in an effort to find more effective and cheaper advertisements.
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