The Readout – July 2023
nestcommerce.co
KEY TRENDS: META
4
KEY TRENDS: META
Cost of Meta ads reach a three-year low
Conversion rates have recovered since iOS 14
Meta CPM keeps getting lower and lower. After two consecutive quarters of declining CPM, it is now 41% cheaper YoY.
Conversion rates on Meta are experiencing a rebound with a 48% increase YoY. This uptick can be partly attributed to improved attribution due to Conversions API and enhanced data modelling. However, there is evidence that conversions themselves are higher too.
Advertisers are benefitting from reduced competition on the platform and a shift back to offline following the pandemic. Increased supply of impressions due to Reels, and greater adoption of broad audiences and ASC, are further reducing CPM. Combined with improved CVR, this is driving 32% lower CPA YoY.
Meta has made improvements to its algorithm since iOS 14. Combined with an increase of deals and reduced competition, this could be driving higher CVR for the remaining advertisers.
-41%
+48%
lower CPM YoY in Q2
2021 CPM
2022 CPM
2022 CVR
2023 CPM
Jan
Jan
Feb
Mar
Apr
May
Jun
Jul
higher conversion rates YoY in Q2
Aug
Sep
Oct
Nov
Dec
Feb
Mar
Apr
May
Jun
2023 CVR
Jul
Aug
Sep
Oct
Nov
Dec
