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

Advertising Automation

Q2 2017 Global

Facebook Advertising Benchmark Report


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.


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


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. Mobile’s 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.


KEY TREND: Mobile Growth Shows No Signs of Slowing


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

Based on investment growth alone, Facebook’s 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.

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


KEY TREND: Facebook’s 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 company’s main platform.


KEY TREND: Facebook’s Growing Ecosystem Delivers Expanded Opportunities for Advertisers


CTRClick-through Rate


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.


CTR: Global


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.


CTR: Ecommerce


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.


CTR: Gaming

CPMCost per 1,000 Impressions


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 quarter’s average represents a 33% increase from Q2 2016.


CPM: Global


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.


CPM: Ecommerce


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.


CPM: Gaming

CPCCost per Click


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.


CPC: Global


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.


CPC: Ecommerce


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 Facebook’s 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.


CPC: Gaming

Geographic trendsInternational performance insights


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.


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.


Geographic Trends


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.


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

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

Marketing

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