Online retailers continue to incorporate Facebook ads as part of their advertising strategy. That’s according to the latest
Q2 2017 Global Facebook Advertising Benchmark Report by Nanigans. The average Facebook budget of eCommerce groups using Nanigans ad automation software to boost their direct response ad campaigns on Facebook, increased 48% over the 12 month period between Q2 2016 and Q2 2017.
The increase is largely driven by Facebook innovation and enhanced dynamic advertising as well as new ad units.
According to the social media company, mobile ad revenue now accounts for around 87% of total ad revenue for the report quarter – up 84% from the previous quarter.
Nanigans said that the rise in mobile placements was more notable among online retailers, with eCommerce companies’ average mobile budgets on Facebook up 80% during the same period.
These findings are in line with consumers spending more time using mobile apps to discover and buy products.
In addition, the study found that the share of total eCommerce ad spend allocated to dynamic ads grew 41% quarter-on-quarter, whilst it increased 54% during the 12-month period. Facebook dynamic ads have shown that they can be effective in boosting sales and reaching consumers.
Similarly, eCommerce ad spend targeting with multiple placements across Facebook grew 59% during Q2. Interestingly, the 12-month share jumped 736% highlighting Facebook targeting as an effective tool to reach audiences and consumers.
Nanigans says that Facebook has made it ever easier to reach customers outside of Facebook including on platforms such as Instagram and the Audience Network. That’s all part of the attraction for advertisers.
Click-through rates (CTRs) on Facebook averaged 1.76% globally in Q2 2017, representing a 6% increase to the previous quarter and a boost of 49% over the 12 months.
Dynamic ad formats continue to push CTRs up as user engagement rates increase. However, eCommerce advertisers noted a small decline in CTRs – at 1.61% (Q2 2017) – representing an 8% quarter-on-quarter drop.
According to the report, the long-term trend for CTRs is positive with figures up 26%. For desktop and mobile gaming marketers, CTRs averaged 0.67%, down 15% over the quarter.
Meanwhile, cost per one thousand impressions (CPMs) on Nanigans averaged $8.66 in Q2 2017 – up 35% quarter-on-quarter. This presents a 33% increase for global average CPMs from Q2 2016.
Cost per click (CPC) increased to $0.49, which is a drop back to levels seen in Q1 2016. The annual average still represents an increase of 11% from 2016.
Nanigans also took a closer look at variation across regions and markets with impression data from the Americas, EMEA and APAC. Mobile represented a larger share of the impressions pie across all regions.