Despite a series of headwinds in recent years, not the least of which was the targeting and measurement hit it took as a result of Apple’s iOS and ATT moves, Facebook, or Meta, remains the same fast-growing ad juggernaut it has always been for performance marketers.
According to a recent Tinuiti report, Facebook and its ever-expanding cousin Instagram continue to move the sales needle. On February 2nd, Meta will announce its full-year revenue and profit for 2021, and we’ll find out exactly how much growth it achieved.
Tinuiti reported in its Facebook Ads Benchmark Report that its clients increased their Meta ad spend 32 percent year over year in the fourth quarter of 2021, a slight decrease from the third quarter.
However, it all boils down to the fact that it is a very effective marketing opportunity. As a result, until users begin to abandon the platform in meaningful numbers, it will continue to play a significant role in how brands market themselves.
Growth of Instagram a boost for Meta Ads
Any user losses suffered by Facebook can be offset by the growth of its sister company Instagram. “Even if people left Facebook, Instagram would suffer less,” claims Andy Taylor, VP of research for the agency. “In particular, Instagram is always on the lookout for new inventory sources to help boost growth on that platform.”
One reason for this, according to Konrad Feldman, CEO of data-driven ad-tech firm Quantcast, is that Meta/Facebook has made it simple for marketers to get what they need by reverse-engineering the traditional way marketers and agencies buy media.
Meta ads are highly simplified
Consider how Facebook works with advertisers. They’ve made it very easy for them. Unlike most DSPs, this one does not require the user to specify all of the levers they need to pull and then keep track of everything.
Taylor also claimed that Apple’s ATT privacy moves had little effect on the social media behemoth’s ad sales efforts. “Regardless of the issues with Apple ATT limiting how well you can retarget individuals,” he says, “their targeting is still fairly powerful.”
Increasing mobile penetration: a big boost
According to the report, while Facebook’s desktop audience share fell at the end of 2021, mobile usage increased in response.
Tinuiti’s mobile usage report discussed how the impact of Apple ATT limiting in-app advertising has resulted in an increase in demand for Android users. According to the report, “there is now relatively more demand for those individuals who can still be targeted and measured using mobile IDs.” The report also predicted that iOS spend share will decline by 2021.
“iOS users continue to see advertisements… “However, the way we can target those individuals has changed,” Taylor explained. “As a result, there’s a lot of demand for those auctions, particularly in the Android space, and the CPM is scaling up as a result.” There is unquestionably a gap between Android and the iPhone that did not previously exist.