WHAT'S THE FREQUENCY, META?
“Who understands these things? I didn’t and I don’t now.” - Dan Rather on when he was asked while being mugged, “Kenneth, what is the frequency?”
The other day, Insider Intelligence published a digital time spent vs. ad spending graph. It’s remarkable, yet absurd, how Meta has a ~2.5x ratio of digital time to digital ad spend. So much so, it’s not even worth talking about others listed in the graph seen below:
Advertisers are jamming 2.5 times the baseline ads per digital minute into the scrolling feeds of Facebook and Instagram. How could that be?
Do Meta audiences demand that much attention?
Does it really take that much share of audience time for Meta platforms to “work?”
Do so many advertisers need to scream into the scrolling wind over and over again to drive an absurd frequency level?
Why? Why?! TELL ME WHY!!!
Since the graph can't tell me why, guess I'll have to uncover it myself.
To start, let’s evaluate from a few different perspectives of the competition (YouTube), trust (consumer & advertiser) and audience (generational use). Each view gets three bullets (for brevity; maybe). Then we’ll see where we land and go from there. Cool? Cool. Here we go!
Why is Meta’s platform getting so much over-investment from advertisers while YouTube isn’t?
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Why is Meta’s platform trusted as a safe haven for advertisers when it’s not trusted by consumers? Didn’t Twitter lose 90% its value due to a similar set of issues?
Why is Meta the go-to for advertisers when younger audiences are not as captivated by Facebook and Instagram and feel addicted?
Summary Tally: 5.5 “Pro”; 3.5 “Against” 2.5x investment
Is Meta deserving of continuing its dominance with a 2.5x ratio?
Pro Argument: Meta gets the money because it’s easy and no one questions marketers when they say they’re running on Facebook and/or Instagram. Given the self-reported nature of performance, it’s also easy to show Meta hits media KPIs. Add to that the over-servicing of brands by the army of Meta salespeople and there’s a complete package of incentives to consistently shift money to Meta. This habit will not end as long as Performance reigns supreme.
Against Argument: If marketers are following eyeballs and time spent, the younger generations will not use Meta’s platforms nearly as much as the older ones do today. Kids grow up with TikTok and YouTube, watching and engaging with from the earliest of ages, then using Snap and Instagram to fill in some of the social gaps as they get older. So if advertisers are trying to engage with Generations Z or Alpha, it will happen without Facebook. And then there’s the lawsuits to consider regarding the safety of adults and children, let alone brands.
Final Verdict:
Meta will be challenged by competition in less than a generation for time spent and while Instagram will stay strong among adults, they won’t own Gen Z like Millennials and Gen X before them.
Add in more & better brand choices coming soon for advertisers with growth in ad supported CTV, an Apple ad network and a Podcasting resurgence, and there’s a lot stacked against Meta to continue monetizing at this pace.
While Meta is an important piece of the mix, it’s for these reasons that I don’t believe Meta is worthy of advertising revenue that’s 2.5x time spent.
Chief Growth Officer | Integrated Marketing | Media Experiences
1yAnother factor is that Meta has the edge on YouTube for data collection based on its more extensive off-platform tracking - very appealing for those performance metrics. But they feel like they are on borrowed time - while attribution catches up with time spent. Still there's a whole lot more data to collect off of those Raybans if they can convince enough people to wear them.
great article - you could also make this an Insight on Needworking.com