The State of Social Advertising in Europe An Analysis of Social Ad Spending Trends and Top Advertisers 2022 Sensor Tower Inc.-All Rights Reserved|Table of Contents03-Social Ad Overview 10-Arts&Entertainment 17-Gaming 22-Conclusion 2 An Overview of Social Ads in EuropeSocial Ad Overview:Europe 2022 Sensor Tower Inc.-All Rights Reserved|U.K.Advertisers Lead the Region with$736 M in Social Ad Spend per Month Social Advertising Overview,Europe between May 2022 and August 20224F57%of Total Ad Spending on Social Channels was Allocated on Facebook$1.46B Average Monthly Social Ad Spending336B Average Monthly Social Ad Impressions5%36%57%Facebook Instagram TikTok Snapchat$0$150M$300M$450M$600M$750MU.K.Germany France Italy Spain020B40B60B80B100B120BU.K.France Italy Germany Spain2%Note:Estimated ad spending across Europes big 5 countries(U.K.,Spain,Italy,France and Germany)between May 2022 and August 2022 2022 Sensor Tower Inc.-All Rights Reserved|Amazon Was the Top Advertiser across Key Social ChannelsTop Advertisers by Social Ad Spend in Europe between May and August 20225Note:Estimated ad spending across Europes big 5 countries(U.K.,Spain,Italy,France and Germany)between May 2022 and August 2022Facebook1 Amazon2 Vodafone3 LOreal4 Diageo5 Secret Media6 Beiersdorf7 Samsung8 Lidl9 Sky plc10 AdobeInstagram1 Amazon2 Procter&Gamble3 LOreal4 Diageo5 Adobe6 Mondelez7 Unilever8 Samsung9 Disney10 ZalandoTikTok1 Amazon2 Disney3 SheIn4 LOreal5 Samsung6 Procter&Gamble7 Nike8 Apple9 Unilever10 SonySnapchat1 Amazon2 Coca-Cola3 Apple4 Nike5 Zalando6 Samsung7 Headspace8 ROBLOX Corporation9 Procter&Gamble10 Under Armour 2022 Sensor Tower Inc.-All Rights Reserved|Retail Advertisers Led in Spending across Social ChannelsTop Categories by Ad Spending in Europe on Social Channels6Note:Estimated ad spending across Europes big 5 countries(U.K.,Spain,Italy,France and Germany)between May 2022 and August 2022Instagram1 Retail 22.2%2 Consumer Packaged Goods 14.4%3 Jobs&Education 5.9%4 Food&Drink Services 5.8%5 Arts&Entertainment 5.5%V1 Retail 11.2%2 Consumer Packaged Goods 10.7%3 Food&Drink Services 5.9%4 Business 5.7%5 Financial Services 5.6%TikTok1 Retail 17.8%2 Consumer Packaged Goods 12.2%3 Gaming 11.6%4 Arts&Entertainment 10.8%5Computers&Consumer Electronics5.2%Snapchat1 Retail 17.6%2 Gaming 13.4%3 Consumer Packaged Goods 11.5%4Computers&Consumer Electronics7.4%5 Arts&Entertainment 5.7%Facebook 2022 Sensor Tower Inc.-All Rights Reserved|Advertisers in Retail Slowed Ad Spend on Social ChannelsWhile Food&Drink Services advertisers in Europe had relatively stable investments on social ad spending,advertisers in Retail dropped their social ad budget over the past four months from$255 million in May 2022 to$215 million in August 2022,down 16 percent.Despite this decline,Retail remained the No.1 category on social channels,with its Share of Voice(SOV)at 15 percent.Expect Retail ad spend to pick back up again leading into the shopping holiday season.7Note:Estimated ad spending across Europes big 5 countries(U.K.,Spain,Italy,France and Germany)between May 2022 and August 2022.Social Channels included Facebook,Instagram,TikTok,Snapchat$0$10M$20M$30M$40M$50M$60M5/1/225/8/225/15/225/22/225/29/226/5/226/12/226/19/226/26/227/3/227/10/227/17/227/24/227/31/228/7/228/14/228/21/22RetailConsumer Packaged GoodsFood&Drink ServicesWeekly Ad Spend for the Top 3 Categories 2022 Sensor Tower Inc.-All Rights Reserved|Ad Spending on TikTok Spiked in 2022Unlike Facebook and Instagram where advertisers in Europe had relatively steady investment,ad investment on Snapchat and TikTok varied over the past four months.In particular,ad spending on TikTok spiked in July 2022,increasing by 18 percent from$67 million in May 2022 to$79 million.With the exception of Retails ad spending on TikTok slightly decreasing in July 2022,advertisers in the rest of the top categories(CPG,Gaming,Arts&Entertainment,and Computers&Consumer Electronics)increased their allotted budgets on TikTok by at least 40 percent in July 2022,compared to May.Note:Estimated ad spending across Europes big 5 countries(U.K.,Spain,Italy,France and Germany)between May 2022 and August 2022Growth in Monthly Ad Spend by Social Channels-10%-5%0%5%10%15%20%May 2022 Jun.2022 Jul.2022 Aug.2022Facebook Instagram Snapchat TikTokNote:Data is indexed to May 2022 May 2022=0%8 2022 Sensor Tower Inc.-All Rights Reserved|TikTok Continues to Lead App Adoption Market ShareTikTok has rapidly gained market share in Europe since it was launched in 2014(originally known as Musical.ly),making it a more important advertising channel than ever for European marketers to pay attention to in 2022.In 2020,TikToks app installs surpassed social giants including Facebook and Instagram,with 40 percent of market share among the top social apps in Europe.The trend continued into 2022,with TikTok commanding the most new installs among top social apps in Europe.TikTok has accounted for the largest share of downloads since 2020.On the contrary,Snapchat has lost its share of downloads among top social apps,declining from 31 percent in 2016 to 17 percent in H1 2022.Note:Download data is for European countries(U.K.,Spain,Italy,France and Germany)on the App Store and Google PlayProportion of Installs Among Top Social Apps in Europe201620172018201920202021H1 20220%25%50%75%100%34%33%40%26%23%11%11%17%16%15%22%22%32%31%26%27%26%30%30%29%25%23%24%20%21%24%28%34%Facebook Instagram Snapchat TikTok9 An Overview of the Ad spending Trends for the Top Arts&Entertainment Advertisers in the EuropeArts&Entertainment:Europe 2022 Sensor Tower Inc.-All Rights Reserved|Amazon and Disney Invested Heavily in Their Streaming ServicesAmazon was the largest Arts&Entertainment Advertiser on social channels,with$47 million in ad spending between May 2022 and August 2022.Its competitor Disney ranked as the No.2 advertiser with$37 million in ad spending.Both Amazon and Disney invested heavily in their streaming service brands.Amazon allocated nearly 50 percent($23 million)of its social ad budget on Prime Video ads in the past four months,while Disney invested more than three-quarters of its budget($29 million)on social ads for its Disney+streaming service.Note:Estimated ad spending across Europes big 5 countries(U.K.,Spain,Italy,France and Germany)between May 2022 and August 2022.Social Channels included Facebook,Instagram,TikTok,SnapchatTop Arts&Entertainment Advertisers by Social Ad SpendingADisneyFever LabsDisplateJustWatchWarner Bros.NetflixSonyNBC UniversalUniversal MusicLive Nation$0$10M$20M$30M$40M$50M11 2022 Sensor Tower Inc.-All Rights Reserved|Amazon Invested on Social Ads After the Paramount+U.K.LaunchAmazon Prime Video brand saw their ad investment reach$9.5 million in July 2022,up 68 percent month-over-month.Among Europes big five countries,Amazons biggest ad push came from the U.K.where they doubled their Prime Video ad spending to nearly$4 million in July.Amazon actively promoted Paramount+in the U.K.after it launched towards the end of June.It spent a total of$1.5 million on its top creative in the first half of July which read“Discover a mountain of content with Paramount+on Prime Video Channels.While Amazon increased its social ad budget for its Paramount+channel,Disney+shifted its ad budget away from social platforms to Desktop/Mobile Display.Its ad spending on social channels dropped to$6.3 million in July,down 21 percent M/M.Note:Estimated ad spending across Europes big 5 countries(U.K.,Spain,Italy,France and Germany)between May 2022 and August 2022.Social Channels included Facebook,Instagram,TikTok,SnapchatMonthly Ad Spending for the Top 3 Streaming Service Brands$0$2M$4M$6M$8M$10MMay 2022 Jun.2022 Jul.2022 Aug.2022NetflixPrime VideoDisney+12 2022 Sensor Tower Inc.-All Rights Reserved|Disney+s Ad spend Peaked a Week after Obi-Wan Kenobi Released In the U.K.,Disney ramped up its ad spending on Facebook right after the first episode of Obi-Wan Kenobi premiered on May 27th.It spent nearly$15 million on Facebook during the week of May 29th,which was nearly three times higher than the average of the prior three weeks.Disneys ad push for its new original series“Obi-Wan Kenobi”helped boost its Disney+app installs during the week of May 29th,up 15 percent compared to the previous week.Note:Estimated ad spending in the U.K.Disney+Social Ad Spend&App Downloads in the U.K.050,000100,000150,0005/1/225/8/225/15/225/22/225/29/226/5/226/12/226/19/226/26/227/3/227/10/227/17/227/24/227/31/228/7/228/14/228/21/22Disney+Social Ad Spend in the U.K.$0$500K$1M$1.5M$2M5/1/225/8/225/15/225/22/225/29/226/5/226/12/226/19/226/26/227/3/227/10/227/17/227/24/227/31/228/7/228/14/228/21/22Facebook Instagram Snapchat TikTokDisney+App Downloads in the U.K.(App Store and Google Play)13 2022 Sensor Tower Inc.-All Rights Reserved|Amazon Musics Ad Spending Peaked a Week Before Prime Day SaleAmazon centralized its advertising budget for its upcoming Prime Day deal starting in late July.It started running a special deal“Get 4 months of Amazon Music Unlimited for free”two weeks before the Prime Day sale.Its social ad spending ramped up by nearly 600 percent during the week of June 26th week-over week and it peaked the week July 3rd at more than$6.5 million in ad spending.Meanwhile,at end of the English Football League season,Spotify invested more on social advertising for its football related podcasts.In May 2022,Spotify spent more than$230 thousand on its top creative which highlighted“football stories told by the biggest names in the game”to attract football fans to their exclusive content.Note:Estimated ad spending in the U.K.Top Music Advertisers in the U.K.Weekly Ad Spending$0$1M$2M$3M$4M$5M$6M$7MAmazon Music Spotify$0$100K$200K$300K$400K$500K5/1/225/8/225/15/225/22/225/29/226/5/226/12/226/19/226/26/227/3/227/10/227/17/227/24/227/31/228/7/228/14/228/21/22Prime Day Amazons two-day sale on July 12-1314 2022 Sensor Tower Inc.-All Rights Reserved|Spotify Utilized a More Diversified Ad StrategyAmazon Music and Spotify employed very different social ad strategies in the U.K.While Amazon Music allocated 88 percent of its ad budget to Facebook,Spotify had a more diversified strategy across social channels,spending at least 17 percent on four different platforms with Instagram leading the way at 45 percent.Amazon tended to include a link with a call to action like“get offer”to lead potential users to the Amazon Music home page for more information.More than 90 percent of its total ad spending went toward creatives of this type.Meanwhile,its competitor Spotify was more likely to use story posts to get people engaged with brand.Note:Estimated ad spending in the U.K.between May though August 2022Social Ad Strategy Amazon Music vs.SpotifyAd Spend Breakdown by Social Devices Ad Type Breakdown on Social Devices0%25%50%75%100%Amazon MusicSpotify18%17%1%45%11%20%88%FacebookInstagramTikTokSnapchatAmazon Music5%91%Spotify2%50%4%23%21%LinkVideoPhotoStoryReelCarousel15 2022 Sensor Tower Inc.-All Rights Reserved|Amazon and Spotify Creative StrategiesSpotify and Amazon Music are the most downloaded music apps in the U.K.Amazons top creatives between May 2022 and August 2022 focused on 3-or 4-month free trials,with highlighted keywords“Limited-time(offer)”and“Free”.Spotify had more diversified creatives.Instead of relying on ads for promotions,it had various creative content that targeted different audiences.For example,its top creative emphasized football-themed podcasts for sports fans.Meanwhile,other creatives mentioned positive survey results from young audiences to appeal to Gen Z and Millennial consumers.Note:Estimated ad spending in the U.K.between May though August 2022Top Creatives between May 2022 and August 202216 An Overview of the Ad Spending Trends for the Top Gaming Advertisers in the EuropeGaming:Europe 2022 Sensor Tower Inc.-All Rights Reserved|Nintendo Steadily Climbed the Top Game Advertiser Rankings Top Gaming Advertisers by Social Ad Spend in Europe18Note:Estimated ad spending across Europes big 5 countries(U.K.,Spain,Italy,France and Germany)between May 2022 and August 2022May1 Entain2 888 Holdings3 Take-Two Interactive 4 CluedUpp5 Tencent6 Humble Bundle7 Sony Games8 Nintendo9 Bonne Terre Limited10 Lilith GamesJune1 Epic Games2 Take-Two Interactive3 Entain4 Nintendo5 888 Holdings6 Humble Bundle7 CluedUpp8 Sony Games9 Tencent10 Activision BlizzardJuly1 Entain2 Electronic Arts3 888 Holdings4 Nintendo5 Take-Two Interactive6 Activision Blizzard7 Sony Games8 Ubisoft9 CluedUpp10 Humble BundleAugust1 Nintendo2 Electronic Arts3 Entain4 888 Holdings5 Activision Blizzard6 Humble Bundle7 Bonne Terre Limited8 Take-Two Interactive9 Sony Games10 Tencent 2022 Sensor Tower Inc.-All Rights Reserved|Nintendo Ramped Up Social Ad Investment in August 2022Nintendo increased its ad spend on social channels between May 2022 and August 2022.It moved up from ranking as the No.8 Gaming advertiser in May to the top spot in August.Nintendo ramped up its ad investment on Facebook and Instagram for the release of its new game“Xenoblade Chronicles 3.”Its ad spending on social platforms reached$4 million in August 2022,up 64 percent compared to the previous month.Note:Estimated ad spending across Europes big 5 countries(U.K.,Spain,Italy,France and Germany)between May 2022 and August 2022Weekly Nintendo Ad Spending on Social in Europe$0$200K$400K$600K$800K5/1/225/8/225/15/225/22/225/29/226/5/226/12/226/19/226/26/227/3/227/10/227/17/227/24/227/31/228/7/228/14/228/21/22Facebook Instagram TikTok Snapchat19 2022 Sensor Tower Inc.-All Rights Reserved|TikTok has been a Key Social Channel for SupersonicTikTok was the only social channel where each of the top mobile game publishers allocated at least 15 percent of their U.K.ad budget.In particular,Supersonic and Voodoo prioritized the channel with more than 50 percent of their social ad budget.Hypercasual mobile game publishers Supersonic and Voodoo tend to market themselves towards a younger audience and mainly invested their advertising budgets on TikTok and Snapchat.Meanwhile,Take-Two Interactive,publisher of games including NBA 2K and Grand Theft Auto Online,had a more diversified strategy across social channels,spending at least 15 percent on four different channels.Note:Estimated ad spending in the U.K.between May 2022 and August 2022Top 5 Mobile Game Publisher in U.K.Ad Spending Share Among Social ChannelsTake-Two Interactive15%15%39%31%Facebook Instagram TikTok SnapchatEmbracer Group22%44%34%AppLovin9%36%48%7%Supersonic24%65%11%Voodoo42%52%7%20 2022 Sensor Tower Inc.-All Rights Reserved|Snapchat Advertising has Played an Important Role for VoodooSocial advertising has played an important role for the games industry.Gaming advertisers in the U.K.allocated 53 percent of their total ad spending on social channels between May to August 2022.Analyzing Voodoos ad spending and download data over the past four months reveals a strong relationship between both Snapchat and TikTok ad spe