Meta ads are currently performing better than at any point since Apple’s ATT update in April 2021, as costs reach a three-year low and conversion rates soar by almost 50%.
After two consecutive declining quarters of CPM (cost per thousand impressions), an ecommerce marketing report from Nest Commerce found the cost of Meta ads has fallen below rival tech giant Google – with CPM dropping 41% year-on-year.
Lower advertising costs are due to reduced competition on the social media platform as well as a shift back to offline communications and commerce following the pandemic.
Other key findings within the report indicate that Meta conversion rates are now rebounding, registering a 48% year-on-year increase. Nest puts this down to better attribution and improved targeting from the Mark Zuckerberg-owned firm’s algorithm.
Notably, spending on Facebook ‘Reels’ has also rocketed to an incredible 1,900% YoY as it has become a key part of many advertisers’ approach to Meta ads thanks to its increase in impressions and broader audience reach.
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Users have also been responding well to video ads on Reels over the last year, with a “gradual improvement” in performance seen over that period.
“Meta is performing better than at any time since iOS 14 – a welcome respite for brands that are feeling the squeeze,” said Nest Commerce founder, Will Ashton.
“Unlike this time last year, when the environment was far more unpredictable, there is now a clear playbook for success. While growth isn’t easy in the current landscape – it is out there for the taking,” he continued.
“We have more confidence in performance this Q4 compared to last year, with more than a year’s worth of data since the downturn. If the economy recovers next year, then investments made in advertising now will be even more important.”
