Social Media Benchmark Insights 2023 by DDMA

TL;DR:

The DDMA Social Advertising Benchmark 2023 presents valuable insights into the Dutch social advertising landscape. Based on an analysis of 154,000 campaigns worth 140 million euros from January 2021 to July 2023, here are the key findings:

  1. Market Share: Meta (Facebook and Instagram) dominates with a 75% market share, while TikTok sees rapid growth.
  2. Economic Impact: Advertisers prioritize short-term goals due to economic uncertainty, favoring conversion-driven campaigns.
  3. Seasonality: B2C ad spending peaks in the holiday season, except on TikTok.
  4. Pricing Trends: LinkedIn and Meta witness CPM decreases, while Snapchat and TikTok become more competitive.

These insights provide marketers with valuable data to enhance their social advertising strategies. Now, let’s delve into the details.



Introduction

The DDMA Social Advertising Benchmark 2023 is a groundbreaking report that unveils the dynamics of social advertising in the Netherlands. Analyzing a massive dataset of 154,000 campaigns with a cumulative value of nearly 140 million euros, spanning from January 2021 to July 2023, this report sheds light on various aspects of social advertising trends. Here, we break down the key findings by the numbers.


1. Market Share: Meta Reigns Supreme

  • Meta’s Dominance: Meta, comprising Facebook and Instagram, stands tall with a staggering 75% market share in social advertising spend. This dominance has been consistent over the years.
  • Challenging Dependency: Interestingly, while many businesses express a desire to reduce their reliance on Meta and Google, the data reveals that this transition is progressing slowly.
  • TikTok’s Surge: TikTok is the platform to watch, experiencing a meteoric rise with a 50% increase in market share in 2023 compared to the previous year.
  • Twitter’s Struggles: Twitter, now known as X, has seen its market share plummet to a meager 0.6%, raising questions about its future as an advertising platform.

2. Economic Impact: Short-Term Success Over Branding

  • Shift in Focus: Despite recent discussions about the resurgence of awareness and branding campaigns, the data from 2023 indicates a contrary trend. There’s a decline in campaigns focusing on awareness and video views.
  • Conversion-Centric: Advertisers appear to be prioritizing conversion-driven campaigns, possibly due to economic uncertainty. Short-term goals have gained prominence.
  • E-commerce Emphasis: E-commerce, which experienced significant growth, now channels a whopping 81.1% of its campaigns into conversions, signaling a shift towards immediate sales.

3. Seasonality: the Season for B2C

  • Holiday Peaks: B2C brands open their wallets during the holiday season, as confirmed by a significant uptick in ad spending. This seasonality holds true for all B2C channels except TikTok.
  • LinkedIn’s Steady Year: LinkedIn, a B2B platform, maintains a consistent ad spend throughout the year, with a slight dip in December.

4. Pricing Trends: CPMs on the Move

  • LinkedIn’s Price Drop: Despite remaining the most expensive platform, LinkedIn experiences a substantial decrease in CPM (Cost Per Thousand Impressions) in 2023.
  • Meta’s CPM Decline: Meta’s CPM also witnesses a decline, possibly due to changes in media plans post-COVID-19 and privacy developments.
  • Snapchat and TikTok Competition: Snapchat and TikTok see CPM increases as competition intensifies on these platforms.
  • Twitter/X Puzzles: Twitter/X becomes costlier despite reduced ad spending, raising questions about its effectiveness.


In conclusion, the DDMA Social Advertising Benchmark 2023 offers invaluable insights into the evolving landscape of social advertising in the Netherlands. These numbers tell a story of Meta’s dominance, TikTok’s rapid ascent, the sway of short-term goals, seasonal ad spending patterns, and shifting pricing dynamics. For marketers, these findings serve as a compass to navigate the ever-changing world of social advertising effectively. Stay tuned to these trends to stay ahead in the game.


Download the DDMA research here

IM Lounge About the author

info@imlounge.nl

IM Lounge is a Media Performance agency. We develop media strategies and do media procurement. We get the right message to the right person at the right time. Within this area we believe developing a media strategy should go hand in hand with the creative strategy.