January 11, 2024

34 sources at full-service digital advertising agencies in the United States (26) and Europe (8); 8 U.S. sources discussed app-install trends, while 26 U.S. sources discussed Meta trends (8 discussed both)

REPEAT SOURCES 26 (19 in the United States and 7 in Europe) from prior OTR Global’s research

INTERVIEWS Dec. 5 through Jan. 9

Reels, Better Measurement Aid Q4

Strong ROI fundamentals and demand for Instagram Reels helped support spending growth on Meta during 4Q23, and an improved macroeconomic outlook and resilient demand from consumer and ecommerce advertisers have boosted expectations for 1Q24.

• U.S. 4Q23 META ad spending excluding app-install up 12%–15% yy, app install spending up
13%–16% yy (both accelerated vs. 3Q23)

• U.S. 1Q24 ad spending excluding app-install expected up 15%–18% yy, app-install spending
expected up 16%–19% yy

• META’s Instagram Reels cited as incremental driver for 13 U.S. sources (vs. 14 in 3Q23, 6 in
2Q23); Reels expected to be key spending driver during next 12–24 months

• Area to Watch: META faces increased competitive risk from improvements in ByteDance’s
TikTok targeting, performance capabilities for direct-response advertisers

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