The overlap of advertisers for Snapchat and Facebook is low
Despite a drop earlier in the year due to the pandemic, digital ad spend has increased 12.2 percent year after year in 2020, giving major advertisers like Google and Facebook a bigger slice of the pie. With users spending more time than ever on social media and online shopping, eMarketer estimates that digital ad spend in the United States will increase by 25.5%, the fastest growth rate since 2018.
With the proliferation of audio-only platforms and the gradual return to offices amid rising vaccination rates, how effective are Facebook ads now compared to ads on Snapchat, podcasts and TV? MediaRadar’s latest analysis answers that question with first quarter information on how ads from each mentioned channel stack up against ads on Facebook, where 48% of advertisers were exclusive in the first quarter.
MediaRadar first sought to understand the top four categories of Facebook advertisers in the first quarter. According to the study, these categories include entertainment, retail, professional services and technology; collectively representing nearly 65% of all advertisers on Facebook in the first quarter.
The retail trade recorded the highest volume of Facebook advertisers in the first quarter: 4,600 according to the MediaRadar study. Brands that advertised exclusively on Facebook account for 56% of the retail category, with car dealerships being the top retail brands advertising in the first quarter. These included Mercedes-Benz of Des Moines, Honda dealers of Kansas City, Audi Layton and Cook Subaru.
The entertainment companies that spent the most on Facebook ads in the first quarter, however, were Disney +, HBO Max, Discovery +, Sling TV, and Amazon Prime Video. Of all ad spend this quarter, streaming companies accounted for 7%.
The biggest spikes in ad spend in the first quarter of 2021 came from smaller categories. For example, spending in food, restaurant and bar categories increased 303% year-over-year this quarter. The restaurants and bars category hit a record high of $ 184 million in the first quarter.
According to the analysis, in the first quarter, 48% of Facebook campaigns lasted one month, 38% lasted between two to four months, 10% lasted between five to seven months, 5% lasted between eight to 10 months and 4% lasted between 11 and 12 months.
As for how advertising on Facebook compares to advertising with TV broadcasters, MediaRadar found that the percentage of overlap between advertisers on NBC and Fox and advertisers on Facebook in Q4 2020 was the same: 34%. As the study notes, this may reflect Facebook’s pursuit of linear TV advertisers over any single channel. Additionally, Facebook’s overlap with broadcast advertisers is on the rise year-over-year when comparing Q1 2020 to Q1 2021, which may suggest that Facebook is improving to attract these advertisers.
Facebook has launched several new audio products to compete with Apple and Clubhouse podcasts. For example, it recently started rolling out live audio rooms and streaming podcasts. MediaRadar’s analysis found that in the first quarter of 2021, the top 10 overlapping podcast advertisers on Facebook accounted for 15% of all podcasting ad spend. And, correlated spending on Facebook was less than 1% of Q1 spending. Finally, in the first quarter of 2021, 29% of podcast advertisers overlapped with Facebook advertisers, according to the report.
The report showed that the overlap of advertisers on Snapchat and Facebook between January 2020 and March 2021 was 22%, with the lowest overlap occurring in February 2020 at 14%. The low overlap could be because Snapchat has added new features, such as a “Sounds” option that allows users to add song clips to their videos, to appeal to Gen Z.