How Meta Outperformed Alphabet, Amazon, Snap, and Others This Quarter

Meta delivered impressive results this quarter, especially compared to other tech giants. Here are the key factors behind Meta's success:

1. Strong Ad Business Foundation
Meta's platforms remain indispensable to advertisers, thanks to robust targeting capabilities—even after the iOS changes—and a comprehensive ad infrastructure. Meta's scale enables it to retain advertisers more effectively than other platforms.

2. Growth in Europe and Beyond
Significant revenue growth is emerging from Europe and other international markets. In contrast, the US and Canada have seen a decline in their share of total revenue (43.1% in Q2 2024, down from 45.1% in Q2 2023).

3. Appeal to China-Based Advertisers
Meta has become a go-to platform for China-based advertisers targeting audiences outside China. For example, brands like Temu and Shein contribute to the thriving online commerce vertical. The growing presence of mobile micro-drama companies like ReelShort, DramaTV, GoodShort, and TopShort in the entertainment and media vertical also suggests strong engagement from Chinese advertisers.

4. Increased Advertiser Demand and Improved Ad Performance
CFO Susan Li noted a 10% increase in ad prices, driven by higher advertiser demand and better ad performance. Meta's AI initiatives, particularly back-end enhancements like Advantage Plus and Lattice, are contributing to this improved performance. While generative AI features are still gaining traction, these foundational improvements are already delivering results.

I discussed Meta's AI initiatives and the rise of Threads, which now boasts nearly 200 million users, with BNN Bloomberg and Jon Erlichman. Watch the full discussion here.

On BNN Bloomberg, Aug 1, 2024