Meta Platforms, Inc. (NASDAQ: META) this week reported strong advertising revenue for the third quarter of 2023, with a revenue of $34.15 billion, an increase of 23% year-over-year.
This growth was driven by a 31% increase in ad impressions delivered across Meta's Family of Apps, which includes Facebook, Instagram, WhatsApp, and Messenger. The average price per ad decreased by 6% year-over-year, but this was offset by the increase in ad impressions.
Meta's advertising business is the company's primary source of revenue, and it accounts for over 98% of the company's total revenue. Meta's advertising platform is one of the largest and most effective in the world, and businesses of all sizes use it to reach their target audiences.
Meta's advertising revenue growth in Q3 2023 was impressive considering the challenging economic environment. The company is facing increased competition from other social media platforms, such as TikTok, and it is also facing regulatory headwinds in some markets.
Meta's main competitors in the advertising business include:
- Google: Google is the world's largest advertising platform, and it competes with Meta for ad dollars across a variety of channels, including search,display, and video.
- Amazon: Amazon is a major player in online advertising, and it is increasingly competing with Meta for ad dollars on e-commerce platforms.
- TikTok: TikTok is a popular social media platform that is growing rapidly, and it is becoming a major competitor to Meta in the social media advertising market.
- Twitter: Twitter is another social media platform that competes with Meta for ad dollars.
Other competitors to Meta's advertising business include:
- LinkedIn: LinkedIn is a professional networking platform that offers advertising solutions to businesses.
- Pinterest: Pinterest is a visual discovery platform that offers advertising solutions to businesses.
- Snapchat: Snapchat is a social media platform that offers advertising solutions to businesses.
- The Trade Desk & other DSPs: The Trade Desk is a DSP that helps advertisers buy digital advertising space.
Key takeaways from Meta's Q3 2023 advertising results
- Advertising revenue of $34.15 billion, an increase of 23% year-over-year
- Ad impressions delivered across Meta's Family of Apps increased by 31% year-over-year
- Average price per ad decreased by 6% year-over-year
- Advertising business remains strong despite challenging economic environment and increased competition