Alphabet (GOOGL.O) and Snap surpassed third-quarter revenue expectations on Tuesday, with the tech giant seeing strong growth both at its core Search and YouTube units.
Meanwhile, Snap's efforts to revamp its ad targeting tools with technology also paid rich dividends, as average revenue per user increased in the third quarter.
"We expect the larger platforms like Meta and Google to lead the wallet share growth at least initially in this ad spend recovery," analysts at Evercore ISI said.
Meta has also leaned heavily on AI-powered marketing planning and ad measurement features in recent years to drive its growth.
"Facebook/Instagram's tools for creating a (marketing) campaign are vastly quicker and easier to use" than smaller rivals including Snap, RBC analysts said, which could potentially give Meta an edge.
Persons:
Arnd, Philipp Schindler, Max, Samrhitha Arunasalam, Aditya Soni, Sriraj
Organizations:
REUTERS, Google, Facebook, YouTube, Evercore, Meta, RBC, Thomson
Locations:
Zurich, Switzerland, Middle East, Bengaluru