Meta
- $11.3 billion in ad revenue in 2018
- $17.9 billion in 2019
- $22 billion in 2020
- $32.4 billion in 2021
Temu is spending like crazy on advertising
“As a result, this increases everyone’s CPA (cost per acquisition) on platforms like Meta and Google because large advertisers like Temu are monopolizing ad inventory and heightening the costs of the advertisers targeting the same audiences.”
over 9,000 active Temu ads are running across platforms.
Be prepared for shifts. These systems (Meta’s auction) are volatile, and businesses should always be prepared to pull back when need be, and have a toolkit of options for where to place their online ad dollars.
2024 gonna be bumpy.
via Adweek
In response to the Search Engine Land piece about Google Ad Strength that I responded to, Google says Ad Strength is not used in the auction.
But!
Ad Strength looks at 4 categories that have been identified to result in better performance through regression analyses.
For example, a low Ad Strength could explain a lack of impressions, but low Ad Strength doesn’t prevent ads from entering into auctions.
It’s a feedback mechanism for creative content and meant to be used as a helpful guide to improve the effectiveness of your ads. Again, it isn’t used directly in the auction.
Meta disclosed Instagram ad revenue as part of the antitrust process.
Instagram earned:
The filing also notes that IG earned $16.5 billion in ad revenue in the first half of 2022, putting it on track to earn more than $33 billion for that year (based on higher holiday spend).
As reported by Bloomberg, the data suggests that Instagram generated around 30% of Meta’s total revenue in 2022. Which, if you were to extrapolate that into last year’s numbers, would suggest that IG brought in around $40 billion in ad revenue in 2023.
Printing money.
Maybe that’s why TikTok wants to clone it.
Facebook will play videos in full-screen vertical by default. Plus some UI updates. Think TikTok meets YouTube.
via Meta
Good reminder: Ads Optimization is Literal
When you select a performance goal in the ad set, the algorithm’s entire focus is getting you as many of that thing as possible.
It’s not trying to get you a certain type of link click or landing page view or ThruPlay. The only goal is to get you that thing and make you happy.
Because Meta is literal, and when you optimize for those things, the assumption is that you are satisfied with that surface-level action.
This is how algorithms work. They don’t make qualitative judgements. It’s a binary “did the action occur?” switch. Yes = success.