Socials Earnings Preview 3Q22

Key Takeaways:

• After cutting 20% of staff due to a downturn in advertising demand, Snap has seen some US advertisers (per Pathmatics Advertiser data) increasing ad spend on popular categories such as Media, Food & Drink Services, and Gaming. However, the single largest category from last quarter, Consumer Packaged Goods, saw advertisers keep spending relatively flat in 3Q.

• Per Sensor Tower estimates, 3Q22 DAUs on Snapchat were up 15% YoY (4% QoQ) compared to +2% YoY (flat QoQ) on Facebook Blue* and Instagram +1% YoY (flat QoQ)

• Instagram had the lowest month-over-month user churn in 3Q22 vs. other popular social networks. Nearly 4% of Instagram users churned each month this year compared to 8-10% each for Snapchat, TikTok, Twitter, and FB Blue.

• Instagram remained the most picked up social media app in 3Q22 with 41% of the most avid users opening the app everyday, compared to 30% each on TikTok and Facebook, 27% on Snapchat, and 20% on Twitter

• Per Pathmatics Advertiser data, Meta saw US advertisers increase quarterly ad spend on three out of the five largest categories (from the prior quarter) while categories more exposed to macro environment factors such as Financial Services and Real Estate declined 9% and 30% QoQ, respectively

• Though Sensor Tower estimates show flattening user growth for Pinterest, we see 3Q22 time spent per US user up 20%. A potential reason for the jump in engagement is positive reaction to its new Watch Tab. Please note that Meta’s reported active user figures for Facebook include users of either Facebook Blue or Messenger and also covers mobile and web. Sensor Tower estimates may vary.

For more information, request the full report from reports@sensortower.com.