Meta’s Q2 earnings are out, and there are a couple of sections that are most relevant to advertisers…
Average Price Per Ad
The average price per ad is up 10% worldwide year over year.
You may recall that ad costs were dropping in 2022 and 23, but that trend has reversed. Things were pretty flat in Q4 last year before being up 6% year over year in Q1.
We see similar trends in the US and Canada.
Meanwhile, Europe’s ad cost increases have been more pronounced.
Average price per ad is finally up year over year in Asia-Pacific (4%) — it was down 22% a year ago.
The costs continue to climb in the rest of the world, where it is now up 24% versus a year ago.
Ad Impressions Delivered
These increases coincide with a flattening of ad impressions, which were also up 10% year over year worldwide.
Driven mostly by new placements and Reels, ad impressions were way up in 2023. But those increases have dropped every quarter since.
These trends look much the same in the US and Canada and in Europe.
Ad Revenue
All of this is happening while Meta’s ad revenue is up over 21% year over year. Despite multiple forces that have disrupted advertising the past few years, Meta’s ad business continues to thrive.
Have you seen an increase in CPMs or overall ad costs?
