Thursday 24th May 2018

New report: advertising spend on Facebook increases in 2018 despite privacy challenges

Jason Smith
by on 12th April 2018 | Leave a comment
Facebook ads

According to a new report from 4C, an ad buying platform, Facebook’s ad revenue has increased by 69 percent year-on-year for Q1 of 2018.

The report states that the best performing verticals were travel and legal/financial, which saw increases in ad spend of 129 percent and 32 percent respectively.

The cost for advertisers to deliver 1,000 impressions of their ads (CPM) also decreased by 18 percent relative to the previous quarter while average cost-per-click (the amount advertisers are charged for a single click on their advertisements) decreased by 21 percent over the same timeframe.

The report mentions Facebook’s recent challenges and goes on to say “…as our data shows, brands will continue to focus budgets where they see performance”.

The report will also make welcome reading for Instagram, which has witnessed a 136 percent year-on-year increase in total ad spend on its platform. Meanwhile, LinkedIn, Pinterest and Snapchat realised increases in ad spend of 66 percent, 41 percent and 234 percent respectively.

While Snapchat can be regarded as the biggest winner over all, it’s important to note it’s still to turn a profit and its absolute revenue share of social media ad spend is minuscule relative to that of Facebook.

The messaging app reported a total loss of $350 million for Q4 of 2017 and on revenue of $286 million. Meanwhile Facebook, which has 2.13 billion monthly active users, reported a profit of $4.26 billion on revenue of $12.97 billion over the same quarter.

The last two days, which have seen Facebook CEO Mark Zuckerberg appear before two separate Congressional hearings and held to task on Facebook’s business model, privacy concerns and electoral interference, have been far less gruelling than many expected.

This latest report, alongside reports suggesting Facebook hasn’t seen much of any blowback from the privacy and political concerns accentuated by journalists and public officials, perhaps signifies the worst of the scrutiny is over for the Silicon Valley based social network.