More Facebook Spending Goes Toward Video Ads in 2Q (Report)

By David Cohen Comment

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More advertising spending on Facebook went toward video ads in the second quarter of 2015, according to the latest research from Nanigans, a Facebook Marketing Partner.

Nanigans studied ad impressions delivered by clients using its ad-automation software during the quarter, covering Facebook desktop and mobile, but not Facebook Exchange.

The company found that video ads accounted for 16 percent of its clients’ total second-quarter ad spend, up from 13 percent in the first quarter of 2015, with that figure reaching 22 percent in June.

On the mobile side, 21 percent of total global mobile ad spending went toward video ads during the period, versus 15 percent in the prior quarter.

For advertisers in the gaming sector, those figures were 36 percent and 19 percent, respectively.

Click-through rates reached a new high during the second quarter, 0.88 percent, while costs per click slipped to $0.46 from $0.53 in the first quarter of the year—the lowest mark since the fourth quarter of 2013.

Looking at CTRs by industry, Nanigans found that e-commerce clients saw no quarter-to-quarter change, but the year-over-year increase was 195 percent. For gaming clients, CTRs held steady in the second quarter versus the first quarter, up 10 percent year-over-year.

E-commerce companies saw CPCs slip 11 percent quarter-over-quarter, to $0.38, while gaming outfits saw a 21 percent slide over the same time period, to $0.63 from $0.80, still up 26 percent compared with the second quarter of 2014.

Nanigans said cost per thousand impressions (CPM) slipped 6 percent quarter of quarter, to $4 from $4.26, while those declines were 11 percent for e-commerce (to $3.30 from $3.74) and 22 percent for gaming (to $4.10 from $5.17). The company added:

Overall, CPMs have increased by 142 percent since the second quarter of 2014, and e-commerce and gaming CPMs have grown by 91 percent and 39 percent, respectively. These year-over-year jumps are driven partly by the reduction in right-hand-side ad inventory, a change Facebook began rolling out last summer.

Readers: Did any of the findings by Nanigans surprise you?

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Image courtesy of Shutterstock.

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