Meta’s digital advertising rates have plummeted to a three-year record low, following a strong recovery from the ‘double recession’ caused by Apple’s ATT update and consumers reverting to pre-Covid behaviours.

The data, revealed in brand and creative agency Nest Commerce’s Read Out report, is based on 1.5 billion+ Meta impressions from global campaigns across Meta and more than 40 e-commerce clients.

The figures show that the US tech giant has achieved a three-year record low in CPM, 37% lower year-over-year, bolstered by a 22% increase in conversion rates and a 31% lower cost per click.

Conversely, ad spend on Reels has increased for the fifth consecutive quarter – and is up 27% quarter-on-quarter, and a further 124% year-on-year.

Subscribe to Marketing Beat for free

Sign up here to get the latest marketing news sent straight to your inbox each morning

The report also shed light on Meta’s rivals, with TikTok emerging as a formidable competitor, with an 18% higher ROAS.

Yet, in further encouraging news for retailers, AOV was 16% higher YoY in Q3, with purchases holding steady despite the continuing challenges of the macroeconomic landscape.

The data continues to highlight the ongoing challenges for the ad sector, referring to how profitability remains a challenge for retailers with rising costs.

“Last year, many retailers and D2Cs scaled back ad spend as their budgets were slashed, only to pile back into the auction in Q4. This year is more positive,” said Nest Commerce, CEO Will Ashton.

“The mist has finally cleared from the ATT update and there is a clearer rulebook of what works, and what doesn’t.

“The combination of sharply reduced advertising costs on Meta and improvements made to targeting and performance is driving significantly improved results on ad investment. Brands that have adapted should be well prepared for peak.”