Emplifi, the leading unified customer experience platform, revealed the findings of its Q2 2022 analysis of social media spend across thousands of brands worldwide.
“Brands need to connect with their audiences where they are and social media is an integral part of the marketing mix”
The report findings highlight a rebound in median monthly global ad spend compared to the same period last year, a decrease in the median monthly click-through rate (CTR), a slight uptick in median monthly cost-per-click (CPC), and steady engagement on Facebook and Instagram. The data also shows a slight decrease in brands’ response rate to customers who ask questions on social media.
Brands increase investment in paid social media
After seeing a notable post-holiday drop in Q1 2022, median global monthly ad spend among brands rebounded by 18% in Q2 2022, climbing back above USD 4,200 – a figure close to the year-high level that was seen in Q4 2021. With this quarter’s rebound, median monthly ad spend has increased 19% YoY, suggesting that brands are allocating more budget to reach their target audiences via paid social.
Click-through rate (CTR) continues to decline
Emplifi data shows that median monthly CTR has been steadily decreasing over time, dipping below the 1% mark in Q1 2022. This past quarter tells a similar story, with CTR lowering to 0.93%, signaling a 11% drop YoY. Despite this decrease, businesses can continue to depend on social media advertising to return value, as engagement remains fairly stable when consumers interact with paid social posts.
Median cost-per-click (CPC) remains stable
While CTR has steadily decreased, Emplifi data shows that CPC remains relatively stable despite some fluctuations in recent quarters, hitting $0.20 in Q2 2022. With average CPC rebounding this quarter after seeing a drop at the beginning of the year, it will be interesting to see whether this is a quarterly fluctuation or the start of an upward trend.
Also Read: Survey – 49% of Consumers Believe Brands Are Neglecting In-App Customer Support
Instagram still dominant in engagement
After seeing a steady decrease since Q2 2021, median Facebook post interactions saw a slight bump quarter-over-quarter, reaching their highest level since Q3 2021. However, Q2 2022 levels remain notably lower than Q2 2021, with brands generating approximately 5.2 interactions per 1K impressions on Facebook, a 15% decrease year-over-year. When it comes to industries, the strongest performers for engagement on Facebook were brands in the Industrial (9.79) and Accommodation (9.04) sectors, while the lowest performers were Ecommerce (2.80), Retail (3.64), and Fashion (3.90).
Instagram continues to show much stronger engagement than Facebook, with about 32 interactions per 1K impressions in Q2 2022, which is on par with what has been seen across the past year. Brands in the Beverages (47.37), Alcohol (46.83), and Software (45.11) sectors saw the highest levels of engagement, with Retail (17.71), Telecom (21.58), and Ecommerce (22.81) brands lagging.