Facebook parent company Meta is intensifying its efforts to capture a larger share of the TV advertising market. Despite a 2.7% decline in the Australian advertising sector, Meta experienced its most successful quarter ever in the country. The company’s suite of apps, including Facebook, Instagram, WhatsApp, and Messenger, saw increased usage among Australians. Additionally, Meta’s video products are booming, even in the face of competition from the fast-growing TikTok. The popularity of short-form content on Instagram and Facebook has been a significant driver of user engagement.
To capitalize on the growing influencer economy, Meta plans to roll out its Creator Marketplace to Instagram in Australia, allowing users to hire influencers for advertisements. Furthermore, Meta’s artificial intelligence platform, Meta AI, will be introduced locally later this year.
Globally, Meta recorded impressive financial results, generating $40.1 billion in revenue and $14 billion in profit in the last quarter alone. Australia is considered a strong indicator of Meta’s overall global growth rate. The platform has seen performance improvements worldwide, fueled partly by the significant growth of small, medium, and large-sized businesses utilizing its advertising platform.
While Meta’s advertising revenue from local businesses in Australia is estimated to be around $5 billion per year, the exact figure is difficult to discern. In the Asia-Pacific region alone, Meta reported $36.2 billion in revenue in 2023, $26.5 billion of which came from advertising revenue. Facebook Australia reported $1.2 billion in revenue in 2022, and updated figures will be available in May.
Last year was a pivotal year for Meta, leading to a restructuring of the organization and a reduction in local staff. While Meta’s Vice President for Australia and New Zealand, Will Easton, is usually low-key, the record-breaking quarter has garnered attention. Easton, a former executive at Google and Microsoft, emphasized the value of planning, which he learned during his tenure at Coca-Cola.
According to Easton, social media is still undervalued by the business community, with many companies allocating excessive advertising budgets to TV and Google search. He argues that Meta provides better value, and upcoming research from Analytic Partners supports his claim that social media is often underrepresented in advertising plans. Easton anticipates shifts in the market as more companies measure and attribute the appropriate value to different advertising mediums.
In a specific case, Easton revealed that an unnamed major fast-moving consumer goods company redirected a TV-sized advertising budget to Meta, resulting in an 18% improvement in sales efficiency compared to TV advertising.
Meta’s continued focus on capturing TV’s ad dollars and its expansion into the influencer economy indicate its determination to dominate the advertising landscape. With its strong financial performance, increasing user engagement, and innovative platforms, Meta is poised for further growth in Australia and worldwide.
