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Sensor Tower · Seema Shah · August 2024
META and SNAP Q2 2024 Advertising and User Trends
Meta Platforms exceeded street expectations in 2Q24 with strong growth in both revenue and profit, driven by the success of Reels on Facebook and Instagram. Snapchat missed the mark on top line growth as it saw a slow down in demand from consumer discretionary verticals. Snap also provided an update on Spotlight and its current position within the broader short-form video landscape, which was corroborated by Sensor Tower estimates.
Key Takeaways:
META’s reported worldwide and US CAN revenue in 2Q24 increased 22% and 17% YoY, respectively, representing a deceleration in YoY growth of 500 bps each vs 1Q24. This was largely in line with ST’s US ads per session metric for Facebook, which increased 29% YoY in 2Q24, also down 500 bps from 1Q24 growth (+34% YoY)
Per ST data, US Facebook users spent 30% of their time on Reels in Jun’24, up 15ppts vs Jan’24, which equates to millions of engagement hours shifting to the surface. This material shift in in-app user time spent towards Reels suggests that Meta is heavily pushing and suggesting short-form video content to Facebook users, which aligns with commentary from CFO Susan Li
YoY growth in total hours engaged per day on Instagram (+14%) in 2Q24 outpaced that of all its peers, save for Reddit (+27%). YouTube (+9%) and Snapchat (+8%) saw positive YoY growth, while Facebook (flat) and Pinterest (flat) saw total hours engaged remain unchanged. TikTok was the sole platform to see a decline in total hours engaged as the critical engagement metric fell 5% YoY in 2Q24
SNAP’s reported global DAUs in 2Q24 increased 9% YoY, a slight deceleration (-1ppts) vs 1Q24 YoY growth. This was directionally in line with ST mobile app DAUs for Snapchat, which also increased 9% YoY, similarly decelerating (-2ppts) vs 1Q24 YoY growth
Despite this deceleration in YoY growth, Snapchat still posted higher user growth than any of its peers, save for Reddit, which saw DAUs jump 24% YoY in 2Q24. YouTube (+7%), Instagram (+6%), Pinterest (+5%) and Facebook (+3%) all saw single-digit YoY growth in average 2Q24 app DAUs, while short-form video giant TikTok saw DAUs remain largely flat over the same period
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