Download pdf - Q1 2015 Global Facebook Advertising Benchmark Report

Advertising Automation nanigans.com

Q1 2015

Global Facebook Advertising

Benchmark Report

http://www.nanigans.com

About This Report

This report is representative of Facebook® ad impressions delivered by customers leveraging Nanigans advertising automation software. It includes ad spend on both Facebook desktop and Facebook mobile, and excludes Facebook Exchange.

For reporting purposes Nanigans categorizes Facebook ad types to align with broad direct response marketing objectives as follows: Unpublished Page Post (All) includes Link, Photo, Video, and Multi-Product Unpublished Page Post Ads. Mobile App Install (All) includes standard (image) and Video Mobile App Install Ads. Domain includes External URL Ads delivered on the right-hand side on Facebook desktop. All Other Ad Types includes other ad types such as Page Post Ads and Desktop App Install Ads.

The vast majority of Nanigans customers are direct response advertisers at ecommerce, gaming, and other internet and mobile companies. Many 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 should not be used as a proxy for the overall Facebook marketplace.

The data in this report should not be compared to any prior or future benchmark reports due to variations in the dynamic nature of the data set each new quarter.

2

Nanigans | Advertising Automation

About Nanigans

Nanigans develops world-class multichannel advertising automation software that enables performance marketing teams to take control of their digital advertising in-house.

Since 2010, Nanigans has been chosen by the world’s largest ecommerce, gaming, and other internet and mobile companies such as eBay, Wayfair, and Zynga. Offered through a SaaS model, Nanigans software features sophisticated tools for cross-channel ROI, predictive optimization, real-time business intelligence, end-to-end workflow automation, and unified data activation.

3


New Facebook ad products gain broader adoption in Q1 2015 following a competitive Q4 2014

This report highlights key trends seen by companies leveraging Nanigans advertising automation software to manage, optimize, and measure their performance marketing ad campaigns on Facebook.

Key Takeaways

Global CTRs increased 17% quarter-over-quarter and 260% year-over-year, indicating that advertisers continue to effectively reach and engage relevant audiences on Facebook.

Advertisers increasingly adopted newer Facebook ad products in Q1, with spend to video ads increasing 2.8X quarter-over-quarter and spend to Multi-Product Ads increasing 5.2X quarter-over-quarter.

Due to seasonality and following a competitive Q4 holiday shopping season with increased demand, global CPCs decreased 17% quarter-over-quarter and CPMs decreased 3% quarter-over-quarter.

Video Ad Spend - Global

Q4 2014 Q1 2015

2.8XQUARTER / QUARTER

Multi-Product Ad Spend - Global

Q4 2014 Q1 2015

5.2XQUARTER / QUARTER

Composition of Spend by Ad Type - Global

All Other Ad Types

Domain Mobile App Install (All)

Unpublished Page Post (All)

Q1 2014 Q2 2014 Q3 2014 Q4 2014 Q1 2015

0%

20%

60%

80%

100%

40%

Advertisers leveraging Nanigans software primarily have direct response goals, and dedicated the majority of budgets to Unpublished Page Post Ads, Mobile App Install Ads, and Domain Ads. These three ad categories represented 97% of spend through Nanigans in Q1 2015.

4


CTRClick-through rate

Global CTRs for Facebook ads continued to rise in Q1 2015, signaling growing engagement rates across desktop and mobile. Average CTRs in Q1 were 0.81%, up 17% from Q4 2014 and up 260% from Q1 2014.

Nanigans customers in the ecommerce vertical saw CTRs increase 12% quarter-over-quarter and 281% over the previous year.

Companies advertising desktop and mobile games saw average CTRs dip 9% in Q1. Mobile App Install Ad CTRs increased 3% quarter-over-quarter, but decay in other ad units brought the over all average down. A longer-term view shows increasing engagement among gaming advertisers, with CTRs increasing 150% year-over-year.

CTR - Global

CTR - Ecommerce

CTR - Gaming

Q1 2014 Q2 2014 Q3 2014 Q4 2014 Q1 2015

+17%QUARTER / QUARTER

+260%YEAR / YEAR


+281%YEAR / YEAR

-9%QUARTER / QUARTER

+150%YEAR / YEAR

Q1 2014 Q2 2014 Q3 2014 Q4 2014 Q1 2015

0.65%

0.26%

Q1 2014 Q2 2014 Q3 2014 Q4 2014 Q1 2015

0.87%

0.23%

0.81%

0.22%

5


CPCCost per click

Costs on a per-click basis for Facebook ads decreased 17% globally in Q1 2015 to an average of $0.53 among advertisers leveraging Nanigans software. Nanigans attributes the return of CPCs to pre-holiday levels to less demand following the competitive Q4 ecommerce shopping season.

Less post-holiday demand in the marketplace is the primary cause behind the seasonal 32% quarter-over-quarter decrease in ecommerce CPCs. From Q1 2014, CPCs were down 14%.

Gaming advertisers experienced average CPCs of $0.80 in Q1, which was up 11% from the previous quarter. Year-over-year CPC growth was 69%.

CPC - Global

CPC - Ecommerce

CPC - Gaming

Q1 2014 Q2 2014 Q3 2014 Q4 2014 Q1 2015


+4%YEAR / YEAR


-14%YEAR / YEAR


+69%YEAR / YEAR

$0.50$0.43

Q1 2014 Q2 2014 Q3 2014 Q4 2014 Q1 2015

$0.80

$0.47

Q1 2014 Q2 2014 Q3 2014 Q4 2014 Q1 2015

$0.51 $0.53

6


CPMCost per 1,000 impressions

CPMs on Facebook desktop and mobile ads combined decreased 3% from the highly competitive Q4 holiday season to an average of $4.26. This decrease can be attributed primarily to seasonality as overall demand decreased in Q1, driven mainly by the ecommerce market. Compared to Q1 2014, CPMs increased 273% among Nanigans customers.

Ecommerce advertisers saw CPMs decrease 24% in Q1, averaging $3.74. Year-over-year growth represented a 227% increase from Q1 2014.

For gaming companies, average CPMs remained neutral at $5.17, indicating there is still heavy competiton and demand in this vertical through Q1. CPMs increased 324% year-over-year.

CPM - Global

CPM - Ecommerce

CPM - Gaming


+273%YEAR / YEAR


+227%YEAR / YEAR

0%QUARTER / QUARTER

+324%YEAR / YEAR

$4.26

$1.14

Q1 2014 Q2 2014 Q3 2014 Q4 2014 Q1 2015

$1.14

$3.74

Q1 2014 Q2 2014 Q3 2014 Q4 2014 Q1 2015

$5.17

$1.22

Q1 2014 Q2 2014 Q3 2014 Q4 2014 Q1 2015

Nanigans multichannel advertising automation software powers the world’s most successful in-house performance marketing teams. A Facebook Marketing Partner with specialties in Ad Technology and Facebook Exchange (FBX), Nanigans is chosen by today’s top ecommerce, gaming, and other internet and mobile companies such as eBay, Wayfair, and Zynga.

© 2015, Nanigans. All Rights Reserved.Facebook® is a registered trademark of Facebook Inc.

Contact Us

http://www.nanigans.com

http://www.nanigans.com/contact