TikTok vs. Instagram Engagement Metrics

Originally Published Winter 2020

Regular readers of the old Excapite blog will recall that in 2011 I proposed a new Facebook metric. Average Revenue per Minute of User Engagement or ARPMOE.

It was picked up by Chris Dixon at the time and gained a moment of popularity in VC circles

You will find the original post archived here : A new Facebook experience needs a new Facebook metric.

5 years later we revisited the numbers and discovered Facebook was well on the way to being on par with Free to Air Broadcast TV - at least in its premium market in the USA

The TikTok numbers published on Twitter by Jon Sakoda for evaluating the Microsoft acquisition bid presents us with the opportunity to revisit the question

TikTok, Snap, Twitter, YouTube, Facebook, Instagram ARPMOE 2020

Note: The numbers published by Jon reflect US engagement

The first thing you will notice is how Instagram outperforms the rest of the Social Media market. Placing it in the premium category normally reserved for flagship television programs (Think: Superbowl)

The second thing you will notice is Facebook is closing in on parity with broadcast TV

The third thing you will notice is TikTok looks like Facebook the year Microsoft invested in the social network

Finally the cost of engagement has risen to the point where we can now display the ARPU values in hours - rather than minutes

TikTok, Snap, Twitter, YouTube, Facebook, Instagram Hourly ARPU 2020

In retrospect the original forecasts for Facebook's ARPUMOE proved accurate and today, although still short of the US TV average and Yahoo! circa 2010, the original Facebook network now generates the same ARPMOE as Yahoo! circa 2000

Originally Published Winter 2020. What are we talking about today? Follow us on Twitter

Copyright Digital Partners Pty Limited 2012-2017