Data from ecommerce software company Triple Whale showed that TikTok has been the biggest beneficiary as advertisers diversify their portfolios: Ad spending on Facebook among its customers fell by 23.5% between Q4 2021 and Q1 2022, while spending on TikTok grew by around 105%.
Internet users spend considerably less time on Facebook and Instagram than they do on TikTok and YouTube, per our forecast—which makes it harder for Meta to lower CPMs to attract more ad dollars. iOS changes have demonstrably led to a decline in ad spending on Meta’s mobile properties, also according to Tinuiti.
Retail media advertising sits at the intersection of two major digital disruptions unfolding in Latin America: the meteoric rise of ecommerce and reallocation of ad dollars toward digital formats. While still nascent, retail media will play a larger part of brands’ marketing strategies in 2022.
Insurtechs like Root and Lemonade commit the bulk of their digital ad budgets to Facebook, while most incumbents focus on desktop display, per February 2020 Pathmatics data. (Allstate is an exception, having raised Facebook spend from 1% of its digital ad spend in 2016 to over half starting in 2018.).