Ad spend increases 43% on Facebook and Instagram globally
Driven by 10.5% growth between Q2 and Q3 2021, marketers spent 43.4% more on advertising on Facebook and Instagram than in Q3 2020.
Spending on social media continues to increase in all regions and industries: The highest year-on-year growth in advertising investment was recorded in Central America (78.8% – Belize, Costa Rica, El Salvador, Guatemala, Honduras, Mexico, Nicaragua and Panama), and in North America (59.5% – Canada, United States, Greenland, Bermuda).
By industry, electronic commerce registers the highest investment, with 51.9% growth from Q2 2021 to Q3 2021, and a year-on-year increase of 38%.
Emplifi, has just released the report “State of Social Networks and CX” for the third quarter of 2021, which contains both the results of advertising investment and organic efforts of brands in social networks, as well as relevant trends about CX.
According to this report, ad spending on Facebook and Instagram grew 43.4% year-on-year during the third quarter of 2021, driven by a 10.5% increase between the second and third quarters of this year. Advertising costs also continued to rise – in line with ad spend – with cost per click (CPC) reaching its highest level since late 2020.
Ad spend on Facebook is a clear sign of current times, with the hotel industry experiencing investment growth of 94% YoY, as countries reopen their borders and travel resumes around the world.
The reach of ads on Facebook increased 3.4% year-on-year, in contrast to the drop of -12.4% registered in Q2-2021.
Meanwhile, advertisers’ click-through rates (CTRs) remain stable, with only slight fluctuations since Q3 2020. The report shows that the reach of Facebook ads took a noticeable turn in the right direction, increasing by 3.7% year-on-year, which represents only slight growth, but also a stark contrast to the 12.4% drop reported last quarter.
The report includes findings and data on both targeted and organic social media, including CPC, CTR, and distribution of ad spend by location. Likewise, it breaks down the trends of the sector by geographic regions and by industries, and analyzes the interaction or engagement of the brands based on the hashtags used and type of publication, influencer marketing metrics and response times of the brands on Facebook. .
One of the most interesting findings from the organic point of view of the networks shows that live videos on Facebook generated three times more engagement with their fans and followers than other types of publications.
“While it is true that brands are having to invest more budget to reach consumers through social platforms, there are great opportunities for B2C advertisers to consider lives or live videos as part of their marketing and social initiatives. commerce in networks “, assured Zarnaz Arlia, CMO of Emplifi. “Lives on Facebook and Instagram are offering advertisers a fresh new way to connect with their audiences, giving them the ability to engage in a real-time conversation that generates measurable e-commerce earnings. Unfortunately, many brands remain unadopted. social video tactics, leaving a lot of room for improvement in this area. ”
The report shows that Facebook Instream Video and Facebook News Feed constitute the best CTR ad placements for both Facebook and Instagram advertising, something to consider for any brand looking to increase their social commerce efforts. Of the brands that already make Lives on Facebook, it is those of beauty, games or gambling and electronic commerce, which are generating the highest number of comments and interactions, compared to other sectors.
According to various industry studies, social commerce or social commerce is becoming a priority for brands, at least in the US The consulting firm eMarketer predicts that the value of the social commerce market in that country will reach the US $ 36 billion by the end of this year, and that figure will likely double by 2025. Facebook and Instagram rank as the top social commerce platforms: eMarketer expects 22.3% of US consumers to buy at least one item on Facebook sometime this year.
A 2021 Ipsos study confirmed that 65% of US consumers claim that they have purchased a product directly from a social media platform or discovered products through their social media.
“Consumers want a seamless shopping experience, from product discovery to purchase. Social commerce allows brands to sell their products directly in an app where the consumer is already shopping. Brands that understand the value of contact