Sensor Tower Monthly Social Media Scoop

Key Takeaways:

• Pathmatics by Sensor Tower US advertiser data indicates that increased competition via platforms such as TikTok have intensified the battle for share of US advertiser dollars, with Snap losing share of wallet in retail (% share down 1pps in 4Q22 vs 1Q22), health & wellness and media (each down 2pps) while TikTok’s share grew across all measured categories in 4Q22 vs 1Q22 as advertisers ramped up spend

  • Meta also ceded ground to TikTok over the course of last year with advertiser % share of spend on Facebook in retail (-1pps), CPG (-4pps), media (-3pps), and food & drink services (-3pps) all down in 4Q22 vs 1Q22

• Snapchat’s 4Q22 revenue fell short of street estimates (flat YoY growth), with company management citing platform policy changes, increased competition, and macro headwinds

  • Though still stellar, Snapchat’s user growth decelerated as highlighted in last month’s Sensor Tower Social Media Scoop: Per ST estimates Snapchat DAUs increased 14% YoY in 4Q22 vs +18% in 4Q21, while Reported Global DAUs increased 17% YoY in 4Q22 vs +20% in 4Q21

• Meta’s 4Q22 earnings exceeded street estimates on ad revenue despite the volatile macro environment, while lower expenses (due to lower anticipated payroll growth) and an additional $40bn in share buybacks will buoy earnings in FY23

• User growth on core Facebook has also begun to plateau as smartphone penetration becomes increasingly saturated in key markets: Per ST estimates Facebook Blue MAUs were up 2% YoY (flat QoQ) in 4Q22 vs +5% YoY in 4Q21, while reported core Facebook MAUs were also up 2% YoY (flat QoQ) vs (+4% YoY in 4Q21)

• User engagement on Meta Platforms’ apps has continued to trend upwards in 2023 with hours engaged per day on Facebook and Instagram up 12% YoY (flat MoM) and 8% YoY (3% MoM) in Jan’23, respectively, vs TikTok (flat YoY & MoM), Snapchat (flat YoY, -5% MoM), and Twitter (-3% YoY, flat MoM)

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