Top Banner

Click here to load reader

Q2 2017 Benchmark Report: Marketers Deepen Facebook Ad Investments as Mobile and Dynamic Ad Retargeting Soar

Jan 22, 2018

ReportDownload

Marketing

nanigans

  • Advertising Automation

    Q2 2017 Global

    Facebook Advertising Benchmark Report

  • Advertising Automation

    KEY TREND: Ecommerce Advertisers Continue to Scale Investments in Facebook as a Growth Channel

    Across a same-advertiser set of large-scale ecommerce companies using Nanigans, average Facebook ad budgets grew 48% between Q2 2016 and Q2 2017.

    This strong growth came as Facebook continues to innovate its offerings for online retailers. Enhancements to dynamic ads, and new ad units like collection ads make the platform an increasingly profitable channel for ecommerce advertisers scaling their direct response initiatives.

  • Advertising Automation

    KEY TREND: Ecommerce Advertisers Continue to Scale Investments in Facebook as a Growth Channel

  • Advertising Automation

    KEY TREND: Mobile Growth Shows No Signs of Slowing

    Advertisers using Nanigans are allocating an ever-higher share of their ad budgets to reaching mobile Facebook. Mobiles surge is particularly notable among online retailers. In a study of a same-advertiser set of ecommerce companies using Nanigans, average mobile ad budgets on Facebook were up 80% year-over-year in Q2 2017.

    The increase comes as consumers continue to spend more time every day using mobile apps, where they are discovering new products and making buying decisions at higher rates than ever.

  • Advertising Automation

    KEY TREND: Mobile Growth Shows No Signs of Slowing

  • Advertising Automation

    KEY TREND: Facebook is More Attractive Than Ever as a Retargeting Channel

    Based on investment growth alone, Facebooks dynamic ads continue to deliver strong return on ad spend for large-scale online retailers.

    Nanigans saw the share of total ecommerce ad spend allocated to dynamic ads grow 41% quarter-over-quarter in Q2 2017. A longer-term view reveals even greater growth at 54% compared to Q2 2016.

  • CONFIDENTIAL: Do Not Distribute

    KEY TREND: Facebook is More Attractive Than Ever as a Retargeting Channel

  • Advertising Automation

    KEY TREND: Facebooks Growing Ecosystem Delivers Expanded Opportunities for Advertisers

    In Q2 2017, the share of ecommerce ad spend targeting multiple placements across the Facebook ecosystem (including Instagram, Audience Network, and more) increased 59% quarter-over-quarter.

    Since Q2 2016, that share has skyrocketed 736%, underscoring the value of reaching Facebook users both on and off the companys main platform.

  • Advertising Automation

    KEY TREND: Facebooks Growing Ecosystem Delivers Expanded Opportunities for Advertisers

  • CONFIDENTIAL: Do Not Distribute

    CTRClick-through Rate

  • CONFIDENTIAL: Do Not Distribute

    CTR: Global

    Click-through rates on Facebook reached an all-time high in Q2 2017, averaging 1.76% globally. This represents a 6% increase from the prior quarter, and a significant 49% increase year-over-year.

    Highly compelling ad creative formats, including dynamic ads, continue to push aggregate CTRs higher as users increase engagement rates on the platform.

  • CONFIDENTIAL: Do Not Distribute

    CTR: Global

  • CONFIDENTIAL: Do Not Distribute

    CTR: Ecommerce

    Ecommerce advertisers saw a slight decrease in CTRs, which averaged 1.61% in Q2 2017. This 8% quarter-over-quarter dip mirrors a similar decrease seen from Q1 to Q2 in 2016 as well. The longer-term trend for CTRs in the vertical remains positive, with recent figures up 26% on a year-over-year basis.

    Historical data indicates that CTRs will likely rise again throughout Q3 and Q4 as advertisers scale campaigns to capitalize on the seasonal increase in online shopping activity.

  • Advertising Automation

    CTR: Ecommerce

  • Advertising Automation

    CTR: Gaming

    For desktop and mobile game advertisers, CTRs averaged 0.67%, down 15% quarter- over-quarter.

    As game advertisers continue to invest in video ads, click engagement may trend comparatively lower while more relevant direct response metrics including install and purchase rates remain strong.

  • Advertising Automation

    CTR: Gaming

  • CPMCost per 1,000 Impressions

  • Advertising Automation

    CPM: Global

    CPMs across all advertisers using Nanigans averaged $8.66 in Q2 2017, which is up 35% quarter-over-quarter. This continues the recent trend of moderate fluctuations, with CPMs falling one quarter and rising the next.

    The most recent quarters average represents a 33% increase from Q2 2016.

  • Advertising Automation

    CPM: Global

  • Advertising Automation

    CPM: Ecommerce

    For ecommerce advertisers, CPMs on Facebook rose to an average of $8.25, a 48% increase quarter-over-quarter and a 30% uptick year-over- year.

    In line with the direction of the aggregate global trend, CPMs in the ecommerce vertical rose following a quarterly decline of 23% from Q4 2016 to Q1 2017.

  • Advertising Automation

    CPM: Ecommerce

  • Advertising Automation

    CPM: Gaming

    A quarterly increase of 42% brought game advertiser CPMs to $7.87, continuing a recent trend of rising averages. The Q2 2017 average is 73% higher than that observed in Q2 2016.

    One contributing factor continues to be a greater allocation of ad spend to highly effective video mobile app install ads, which tend to command higher CPMs in the marketplace when compared to standard image ad units.

  • Advertising Automation

    CPM: Gaming

  • CPCCost per Click

  • Advertising Automation

    CPC: Global

    Global CPCs in Q2 2017 rose to $0.49, returning to levels seen back in Q1 2016 when CPCs averaged $0.48.

    This quarter saw a continuation of the trend of alternating quarters of rising and falling CPCs. The Q2 average represents a 27% increase quarter- over-quarter and an 11% decrease year- over-year.

  • Advertising Automation

    CPC: Global

  • Advertising Automation

    CPC: Ecommerce

    CPCs for ecommerce advertisers rose to an average of $0.51.

    Despite the 60% quarter- over-quarter increase, this figure is just 2% higher than the $0.50 average reported in Q2 2016.

  • Advertising Automation

    CPC: Ecommerce

  • Advertising Automation

    CPC: GamingGame advertisers saw average CPCs increase 67% quarter-over-quarter to $1.18. On a year-over-year basis, game advertising CPCs increased 78%.

    A potential driving factor is the rapid adoption of Facebooks app event optimization among game advertisers. This bidding strategy places the optimization focus on in-app conversions like purchases, which occur further downstream from the initial click and install. As a result, upstream costs on a per-click basis may trend higher, while advertisers still generate greater returns through in-game monetization.

  • Advertising Automation

    CPC: Gaming

  • Geographic trendsInternational performance insights

  • Advertising Automation

    Geographic Trends

    The Facebook advertising ecosystem can vary from region to region, and marketers should always tailor their performance goals and strategies for each geographic market.

    To give advertisers insights on global trends, Nanigans analyzed campaigns targeted to specific countries in Q2 2017.

  • Advertising Automation

    Geographic Trends

    To ensure statistical significance, country spend, clicks and impressions data is grouped into geographic regions:

    1) The Americas

    2) Europe, Middle East, and Africa (EMEA)

    3) Asia-Pacific (APAC)

    Each region accounts for tens of millions of dollars of Facebook ad spend through Nanigans.

  • Advertising Automation

    Geographic Trends

  • Advertising Automation

    About This ReportThis report is representative of Facebook ad impressions delivered by customers leveraging Nanigans advertising automation software. It includes ad spend on Facebook desktop, Facebook mobile, and Facebook Audience Network, and excludes Instagram.

    The vast majority of Nanigans customers are direct response advertisers at ecommerce, gaming, and other Internet and mobile companies. In Q1 2017, 96% of spend from these direct response advertisers was allocated to four Facebook ad products: Unpublished page post ads, mobile app install ads, domain ads, and dynamic ads.

    The majority of these direct response advertisers leverage Nanigans ROI based bidding algorithms, which focus on reaching high-value and high-ROI audiences (e.g. those who make purchases) and typically cost more to reach. As such, the data in this report may not necessarily be a proxy for the overall Facebook marketplace.

  • Advertising Automation

    For more guides, reports and case studies, visit nanigans.com

    http://www.nanigans.com/marketing-resources/http://www.nanigans.com/marketing-resources/