The Readout – July 2023
nestcommerce.co
KEY TRENDS: AUDIENCE
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KEY TRENDS: AUDIENCE
Brands spend more on interest audiences
Catalog ads deliver far higher engagement
Spend for interest-based targeting has increased by 41% QoQ and 22% YoY. These ads delivered better ROAS than other audiences, with 9% higher ROAS than broad and 44% higher than lookalike.
Although we’ve seen a decline in CTR QoQ for most objectives, catalog ads bucked this trend with a 21% increase QoQ.
One theory is that, as interest behaviour is on platform, Meta is more accurate at targeting here. Many brands have also shifted their strategies to broad since iOS 14, meaning CPM is 71% more expensive for broad when compared to interest. Additionally, there is a powerful opportunity with interest to deliver more relevant creative.
+41%
Q3 2022
Additionally, dynamic ads for broad audiences and dynamic product ads are powerful for overcoming issues with signal noise. This combination of high engagement and conversions mean that catalog ads delivered 52% higher ROAS QoQ.
+21%
increase in spend for interest audiences QoQ
Interest-based ad spend per quarter
Q2 2022
Consumers are becoming more price savvy, so catalog ads are a powerful way to showcase deals to your audience.
higher CTR QoQ for catalog ads
Catalog vs Conversions vs Awareness CTR (Q2 2023)
Q4 2022
Q1 2023
Q2 2023
Catalog CTR
Conversions CTR
Awareness CTR
