Yuan has their Q3 2024 Earnings Several topics affecting advertisers were discussed on the call last week.
This is my main takeaway…
4 points
1. Advertising revenue increased by 18.5% compared with the third quarter of last year.
This was primarily driven by $17 billion in advertising revenue in the United States and Canada.
Meta continues to make money from ads, which means advertisers continue to spend money. Advertising growth isn’t slowing down.
What do advertisers see?
2. The average price per ad increased for the fourth consecutive quarter compared with the same period last year.
Compared with the same period last year, advertising prices increased by 11% in the third quarter.
There was a time, average price per ad The quarter-over-quarter decline is likely due to an increase in video and reel impressions.
Many factors influence cost, but This is the current trend.
3. At the same time, the growth in the number of ad impressions continues to slow down, with an increase of only 7% compared with a year ago.
Advertising costs exceed impression growth.
It’s worth noting that the number of ad impressions didn’t drop. Instead, the year-over-year increase in impressions is slowing down. This can be attributed, at least in part, to the fact that the environment that led to increased impressions and lower advertising costs (largely driven by video) a year ago is no longer novel.
4. Threads has 275 million monthly users Adding 1 million new users every day.
Even so, Meta doesn’t expect Threads to be a significant driver of revenue in 2025.
This seems to pour cold water on the rumors Advertising is on its way to the app. All this time, Mark Zuckerberg has maintained 1 billion user milestone For monetization.
This isn’t necessarily good news for advertisers, as the added placements will certainly increase inventory and lower costs.
