We reported as late as Sunday that the cost per CPM of Facebook ads is growing strongly, both globally and in our country. A trend that led us to assume that advertising investments on Facebook were also growing overall. Working hypothesis absolutely confirmed by the Emplifi studio, a company founded in June of this year from the merger of Astute Solutions and Socialbakers.
In fact, according to the “State of social media and CX: Q2 2021” report, Facebook’s global advertising spend grows by 50% on an annual basis. There was a relatively modest increase in advertising spending in the second quarter of 2021 compared to the first quarter of 2021 (+ 3.2%). However, there was a far more noticeable increase than in the second quarter of 2020, with ad investors spending 49.9% more on advertising on Facebook and Instagram.
The global year-over-year comparison shows that not only is investment growth higher than in 2020, but also that it is not simply a rebound as growth is far higher than that in 2019 as well, such as show the infographic below.
Instagram accounts for 30.5% of ad spend across Facebook-owned platforms, making it about half the size of the Facebook platform, according to dati of facebook and Emplifi.
The Facebook company reported total advertising revenue of $ 28.6 billion in the second quarter of 2021, which means that Instagram attracted approximately $ 8.7 billion in ad spend that quarter. This is just under half of the 66.8% share of the Facebook platform, equal to 19.1 billion dollars.
The Facebook News Feed alone attracts more than half (54.6%) of all parent company’s advertising investments, in part because it offers the second-highest click-through rate (0.29%). However, its share dropped from 56.6% in the first quarter of 2021.
Placements on Instagram follow in second and third place, with feed ad spend accounting for 16.9% ($ 4.8 billion) and Stories taking a 10.6% ($ 3 billion) share. The platform benefits from a younger audience, with 41% of users aged 18-24 compared to Facebook’s 31%.
Further research shows that advertisers are also shifting to less direct response campaigns, with brand awareness spending, traffic and reach goals more than doubling in Q2 2021. Focusing on building visibility and discovery can achieve significant effects for brands on Facebook and Instagram. However, higher advertising costs could pose a challenge, so advertisers may need to be more efficient by targeting a wider audience.
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