Gather 'round as we spill the beans on what went down in the wild world of Meta ads in May 2024, through the lens of Proxima.
They tracked over $50 million in ad spend across a gazillion (okay, hundreds) of DTC brands. Ready for some juicy insights? Let’s dive in!
Dataset Overview
Here's the lowdown: Proxima analyzed around 500 customer accounts, each over $1 million GMV, using a 7-day click and 1-day view attribution window. These brands span a smorgasbord of categories—from fashion to food and everything in between.
Overall Trends
May was a rollercoaster with Mother’s Day, Memorial Day, and the kickoff of summer. And boy, did that shake things up! Check out these stats:
- CPM: Up by 11.36% (yep, ads got pricier)
- CPC: Rose by 13.27% (paying more per click, ouch!)
- CTR: Dipped slightly by 1.69% (not too shabby, right?)
Week by week, things peaked just before Memorial Day (May 27). No big shocker there.
At the bottom of the funnel, some good news:
- ROAS: Up by a sweet 13.51%
- CPA: Stayed pretty chill, down just 0.67%
Despite holiday ad frenzy, CPAs stayed flat, meaning your dollars stretched just as far. And guess what? ROAS typically nosedives during promo seasons, but not this time!
AOV jumped by 13.33%, thanks to savvy promo strategies and gift-giving.
Key Question for You: What kind of magic did you work with your offers? More items per order or customers splurging on big-ticket items?
Oh, and about that Meta outage from May 31 to June 3? No major drama—ad performance held steady. They will spill more on that in the June report.
Mother’s Day / Memorial Day Promotions
Ah, holiday shopping—where deal hunters reign supreme. But what kind of promo should you run? Here are some ideas:
- Sitewide deals
- Select SKUs
- Gift with purchase
- Free shipping
- Buy X, get Y
Spoiler alert: there’s no one-size-fits-all. You gotta experiment to find your golden ticket.
One promo tactic that killed it was tiered discounts. This can seriously boost AOV, especially during flash sales. The more customers spend, the bigger the discount they get.
Example: If your AOV is $40:
- Get 10% off $49+
- Get 20% off $99+
- Get 30% off $199+
This nudges shoppers to load up on more goodies or pricier items. Cha-ching!
Category Trends
May 2024 had some standout performances by category. Did your biz see similar trends?
Beauty:
- CPC: Down 4.35% (score!)
- CTR: Up 16.29% (double score!)
- CPA: Down 7.57% (hat trick!)
Fashion:
- CTR: Up 5.26%
- AOV: Up 0.40%
- ROAS: Up 2.12%
Food & Beverage:
- CPM: Down 6.29%
- CPC: Down 2.03%
Conclusion
May was a whirlwind for Meta ads, thanks to holidays and the summer kickoff. Despite higher ad costs, smart spending and crafty promos kept ROAS strong and CPAs stable. Keep these trends in your back pocket to up your ad game in the coming months.
