Meta dominates UK ecommerce advertising space, but influence is slipping

Meta has been named the top advertising platform of choice for UK online retailers, according to a report by financial platform Juni.

The research reveals that 65% of UK ecommerce ad spend went on Meta owned networks Facebook and Instagram, as well as 22.9% on Google and 4.3% on TikTok in 2022.

However, Facebook and Instagram’s position has eroded over the year, falling from 70.5% in January to 60.9% in November.

While the rise of retail media networks launched by the likes of Asda, Boots and Tesco are predicted to revolutionise the UK advertising landscape, Juni’s data shows that social media platforms still play a key part in the overall campaign mix.

On the Juni platform, TikTok has made significant gains in the year, displacing the likes of Amazon, 1.4%, Pinterest, 0.5%, and Snap, 0.4%, to become the UK’s third most popular platform for ecommerce ad spend.

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TikTok’s overall market share is 4.3%, peaking in July at 10.1% of overall spend, and June at 8.7%, although Juni is witnessing “some contraction” as the year ends.

Google suffered a dip in market share in August, dipping to 16.4%, but climbed to 25% in November, suggesting a resurgence during key retail moments.

In November, UK ecommerce retailers focused 61.3% of their monthly budget on advertising, a 167% increase on January’s ad spend level.

As gifting season continues and New Year sales are around the corner, Juni also predicts holiday ad investment in December will be slightly above November, naming the current leading platforms for December ad spend as Meta, 68%, Google, 28%, and TikTok, 1.8%.

“In early 2022, we launched credit to help UK ecommerce companies fund ad campaigns to unlock revenue growth,” Juni chief executive and co-founder Samir El-Sabini said.

“We’re seeing high levels of ad spend across our platform, with our data showing where and when online retailers are choosing to invest their marketing budgets.

“It’s clear that companies have been testing what the best platforms are for them during certain key retail moments. As we enter 2023 amid a challenging economic climate, where businesses choose to spend their marketing budget will be brought into even sharper focus.

“It will be important to become more selective than ever on brand and channel investments. To sustain growth next year, businesses will need to manage a balancing act of the right mix of online and offline marketing and distribution.”



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