Meta 2024 Q3 Earnings Takeaways

Meta held its 2024 Q3 earnings call last week and discussed several topics of interest to advertisers.

Here are my main takeaways…

4 Tickets

1. Advertising revenue increased by 18.5 percent compared to the third quarter last year.

This is primarily driven by $17 Billion in ad revenue in the US and Canada.

Meta continues to make money from advertising, which means advertisers continue to spend money. Ad growth is not slowing down.

What do advertisers see?

2. For the fourth quarter in a row, average price per ad increased year over year.

Ad prices were up 11 percent compared to the third quarter last year.

There was a period when the average price per ad decreased quarter after quarter, likely driven by the increase in impressions from video and Reels.

Many factors will affect the cost, but this is now the norm.

3. This happened while ad impression growth continued to slow, increasing by only 7 percent compared to last year.

The cost of the ad exceeds the growth of the impression.

It is important to note that impressions do not go down. On the contrary, the rate of increase of views from year to year is decreasing. This can at least be attributed to the fact that the area that led to the increase in impressions and the decrease in ad spend last year (mostly driven by video) is no longer new.

4. Threads can reach 275 Million users every month with 1 million new users added every day.

However, Meta does not expect Threads to be a profitable revenue driver in 2025.

That appears to be cold water on the rumors that ads were on their way to the app. All this time, Mark Zuckerberg has maintained the milestone of 1 Billion users in making money.

Not necessarily good news for advertisers as additional placements will increase inventory and lower costs.