Marketing Movements - June 2022

June 2022 again appeared to follow the trend of decreasing ad costs and improved CPAs that we first highlighted back in May. In General, across the broad our index of advertisers saw not only their CPMs & closely correlated CPCs decrease be several percentage points but also the qualify of traffic being pushed through FB appears to be more relevant & of a high quality given the noticeable increase of CVR in multiple industries (+4% CVR in Ecommerce & +8% in Apps being the most notable increases from May)

Diving deeper into the data we are able to see that surprisingly it was mainly the "Bigger" advertisers that were more heavily favoured with the reduced ad costs as advertisers in our '$10k to $25k' spend segment only saw a decrease in CPMs of 3% however this number increased to 8% on indexed companies spending over $100k/Month on Ads. Usually these numbers tend to be the other way around when running campaigns at a high scale and so this trend will be particularly interesting to check back up on next month to see whether this data was an anomaly or not...

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Our indexed Ecommerce clients again had noticeable improvements in their ad performance this month, wether that is due to the Summer related helping improve CTR's and CVR's in D2C brands favour or simply improvements in the overall marketing strategies & creatives that many brands are incorporating more heavily into their advertising right now which includes loads of UGC/Tiktok Style content, is yet to be fully seen. This month we saw both Northern American & European brands roughly favour from the same decreases in ad costs however the main difference in the data being that CVR's in Europe didn't improve as heavily as American CVR's with the difference coming in at 2% Uplift in Europe vs 6% in North America.

Unlike our reports from last month suggested, advertisers in the Asian Marketers in June saw the least change with ad Performance with the reported CTR/CPC/CPM metrics all varying by less than 2% compared to May.

One industry that is performing fabulously on Facebook right now are Apparel brands. With standout performance figures of a drop in CPA of up to 39% across certain brands, it is fairly evident to say that clothing brands are significantly benefitting from the improved weather and changing of season across most of Europe & North America at the moment. We are likely to see improved performance in the Apparel industry continue for the next 2 months though expecting a similar decrease in ad costs to favor them in consecutive months isn't very likely.
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As reported & expected earlier this year, the number of indexed accounts spending over $25k+/Month at the moment has increased over 16.66% compared to 3 months ago. This is a trend we'll likely to increase in July & with more advertisers entering the auction again, it is inevitable that CPMs will rise in certain industries though it is yet to be seen what sort of uplift percentage wise we are looking at as comparing CPMs from COVID Data last year wouldn't be the most accurate/fair comparison.
As always we can only stress the importance of creative testing, especially in this period were ad budgets are going up and your competitors are doubling down on the paid channel efforts, only the advertisers who invest time and resources in producing multiple high quality pieces of ad creative & constantly split test variations and messaging - will get the best out of this summer season spike. Analysing your data and running strategic creative tests is absolutely essential to maximise profitably of your campaigns in the next few months.

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