Meta had their 2024 Q3 earnings call last week and discussed several topics that impact advertisers.

Here are my primary takeaways…

4 Takeaways

1. Ad revenue is up 18.5 percent compared to the third quarter last year.

This is driven primarily by $17 Billion in ad revenue in the US and Canada.

Meta continues to profit from advertising, which means that advertisers continue to spend money. Ad growth is not slowing.

What are advertisers seeing?

2. For the fourth consecutive quarter, the average price per ad is up year over year.

Ad prices were up 11 percent compared to the third quarter a year ago.

There was a time when the average price per ad was dropping quarter after quarter, likely driven by an increase in impressions from video and Reels.

Many factors will impact costs, but this is now a trend.

3. This is while ad impression growth continues to slow, rising only 7 percent compared to a year ago.

Ad costs are outpacing impression growth.

It’s important to note that ad impressions aren’t dropping. Instead, the rate at which impressions increase year over year is slowing. This can be at least partially attributed to the fact that the environment that led to an increase in impressions and drop in ad costs a year ago (mainly driven by video) is no longer new.

4. Threads is up to 275 Million monthly users with 1 million new users added every day.

Even so, Meta doesn’t expect Threads to be a meaningful driver of revenue in 2025.

That appears to be cold water on the rumors that ads were on the way to the app. All along, Mark Zuckerberg has maintained a 1 Billion user milestone for monetization.

Not necessarily great news for advertisers since the added placement will surely increase inventory and lower costs.