Mobile advertising skyrocketed on Facebook in Q2 2017. According to Facebook's recent revenue report, mobile advertising now commands an 87% share of all ad revenue. What's driving this massive increase in mobile ad spend? Nanigans recently explored this shift in its Q2 2017 Facebook Advertising Benchmark report. Learn how advertisers are maximizing revenue growth on Facebook with the findings in this SlideShare.

1. Advertising Automation
Q2 2017 Global
Facebook Advertising Benchmark Report

2. 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.

3. Advertising Automation
KEY TREND: Ecommerce Advertisers Continue to Scale
Investments in Facebook as a Growth Channel

4. 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. 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.

5. Advertising Automation
KEY TREND: Mobile Growth Shows No Signs of
Slowing

6. Advertising Automation
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.

7. CONFIDENTIAL: Do Not Distribute
KEY TREND: Facebook is More Attractive Than Ever as
a Retargeting Channel

8. Advertising Automation
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.

9. Advertising Automation
KEY TREND: Facebook’s Growing Ecosystem Delivers
Expanded Opportunities for Advertisers

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CTR
Click-through Rate

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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.

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CTR: Global

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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.

14. Advertising Automation
CTR: Ecommerce

15. 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.

16. Advertising Automation
CTR: Gaming

17. CPM
Cost per 1,000 Impressions

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

19. Advertising Automation
CPM: Global

20. 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.

21. Advertising Automation
CPM: Ecommerce

22. 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.

23. Advertising Automation
CPM: Gaming

24. CPC
Cost per Click

25. 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.

26. Advertising Automation
CPC: Global

27. 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.

28. Advertising Automation
CPC: Ecommerce

29. Advertising Automation
CPC: Gaming
Game 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.

30. Advertising Automation
CPC: Gaming

31. Geographic trends
International performance insights

32. 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.

33. 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.

34. Advertising Automation
Geographic Trends

35. Advertising Automation
About This Report
This 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.

36. Advertising Automation
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