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In: Digital Marketing

Tinuiti announced that they have finished producing their latest Facebook Benchmarks report and have uncovered numerous opportunities for brands to optimize their Facebook benchmarks marketing strategies. While ad impression growth on Facebook turned positive in the second quarter, the declines were more pronounced on Instagram, where advertisers saw a 27% decline in the second quarter, compared to a 4% decline in the first quarter of the year.

Summary of key findings from the Facebook Ads Benchmark report

In the second quarter of 2022, adspend on meta real estate at Tinuiti advertisers declined for the first time year over year, down 1% year over year, compared to a 10% growth in the first quarter. Impressions fell 7% year over year, an improvement from a 17% decline in the first quarter, but CPM growth slowed significantly as advertisers faced much tougher year-over-year comparisons in the second quarter of the year.

On Facebook itself, impressions rose for the first time in the last five quarters, up 4% year over year. Overall, CPM on Facebook remained stable year over year in Q2, although the median advertiser still saw 9% growth. Spend growth slowed to 4% year over year, the slowest growth since Q4 2019 for Tinuiti advertisers on Meta’s flagship app.

Increase ad impressions on Facebook

Increase ad impressions on Facebook

While ad impression growth on Facebook turned positive in the second quarter, the declines were more pronounced on Instagram, where advertisers saw a 27% decline in the second quarter, compared to a 4% decline in the first quarter of the year. Spending on Instagram was down 10% year over year, and the second quarter of 2022 was the first quarter on record that spend on Facebook for Tinuiti advertisers grew faster than Instagram. Year-over-year CPM growth remained relatively strong on Instagram at 22%, but that was the slowest growth over the past six quarters.

One factor seemingly weighing on impression growth for Instagram ads is the rise of Reels, a vertical video format that closely resembles the look of TikTok videos. During its Q1 earnings call, Meta noted that reels accounted for more than 20% of total Instagram usage. But while the share of Reels ad impressions has grown in recent quarters, it remained below 5% of total Instagram ad impressions in Q2 2022. Looking ahead, Instagram impression growth should recover due to the discrepancy between Reels ad impression share and Instagram usage share narrows.

CPM growth on Facebook and Instagram

CPM growth on Facebook and Instagram

While CPM growth has slowed significantly year over year on both Instagram and Facebook, ad prices for these two properties remain well above where they were two years ago for the vast majority of advertisers. In the second quarter of 2022, CPM for Facebook ad impressions was 44% higher than Q2 2020, while CPM for Instagram ads was 68% higher.

The impact of Apple’s App Tracking Transparency (ATT) Prompt continues to be seen in several advertising trends. For example, Android smartphone CPM continues to outperform iPhones across meta properties for the vast majority of advertisers. However, the gap narrowed much in the second quarter, narrowing from 46% higher in the first quarter to just 12% higher in the second quarter. This is the smallest gap observed since Q2 2021, when Command Prompt was originally launched.

iPhone meta-ad spend growth returned to positive territory in June after five straight months of year-over-year declines through early 2022, with ad spend on iPhones rising 3% in the final month of Q2. This was almost identical to the 4% growth in spending observed for Android smartphones in June, as advertisers have now surpassed the point where most iOS users have updated to a version that required the ATT prompt. The annual growth gap between these two devices was widest in December 2021, when Android smartphone spending grew by 101% and iPhone spending by just 3%.

The impact of Apple's ATT on iOS impressions

The impact of Apple’s ATT on iOS impressions

ATT also caused problems with Meta’s in-platform reporting, as it became more difficult to track actions taken after viewing or clicking on ads for users who opted out of tracking. During Q2 2022, Meta’s platform saw a at least 24% year-over-year decline in both purchases and purchase value for both 7-day and 1-day click attribution windows. advertisers increasingly need to rely on testing and other measurement techniques to assess the effectiveness of advertising campaigns.

Social advertisers continue to rapidly expand their efforts on TikTok to increase the incremental reach of their marketing campaigns and stay with younger users. This has led to an increase in competition in TikTok ad auctions, and the CPM for the average Tinuiti advertiser increased by 143% from January 2022 to June 2022.

Despite this, most TikTok advertisers continue to find that the CPM on the platform is much lower than that of meta ads. In Q2 2022, the median advertiser found that TikTok’s CPM was 25% lower than Meta Ads’ CPM, a smaller gap than the 39% difference observed in Q1.

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