Martech: Martech is Marketing Logo
  • Topics
    Digital Transformation
    Marketing Operations
    Data
    Customer & Digital Experience
    Performance Marketing
    Marketing Management
    Special Reports
    MarTech Topics
  • Conference
  • Webinars
  • Intelligence Reports
  • White Papers
  • What is MarTech
    Mission
    Staff
    Newsletter
    Search Engine Land
    Third Door Media

Processing...Please wait.

MarTech » Performance Marketing » Q3 Reports: Facebook continues to see significant ad spend growth

Q3 Reports: Facebook continues to see significant ad spend growth

Advertisers are seeing higher engagement rates even as CPCs trend down.

Ginny Marvin on October 26, 2016 at 1:28 pm

facebook-audience-users-crowd2-ss-1920

Advertisers keep increasing investment in Facebook, third-quarter reports from Kenshoo and Merkle both found.

According to Kenshoo data released this week, advertisers on the campaign management platform increased spending on Facebook (including Instagram and Facebook Audience Network) by 45 percent year over year in Q3. Click-through rates across the Facebook ecosystem have steadily risen over the past three quarters, increasing by 14 percent year over year in Q3. Kenshoo attributes the higher engagement rates to more specialized ad types and better targeting.

The growth was driven by dynamic product ads — Facebook’s retargeting ad format that shows users products from sites they have visited previously. Dynamic product ads (DPAs) accounted for 42 percent of ad clicks and 21 percent of ad spend on Facebook among Kenshoo customers. That’s up from just 15 percent click share and eight percent spend share for DPAs a year ago.

Kenshoo also saw advertisers increase investment in video advertising on Facebook in Q3. Video ad spend rose 155 percent year over year.

Mobile ad spend across Facebook properties increased 61 percent as mobile impressions rose 47 percent and clicks increased 79 percent.

In Merkle’s Q3 Digital Marketing Report, the agency said clients increased ad spend on Facebook by 63 percent year over year. With Facebook Exchange (FBX) soon shutting down, Merkle says most advertisers have reallocated FBX spend to other targeting opportunities on Facebook.

Both reports found Facebook CPCs have been falling and CPM rising.

According to Kenshoo, average CPCs on Facebook returned to levels seen a year ago (and declined from a peak of $0.35 in Q4 2015) to $0.25 in Q3 2016. CPM, however, has risen steadily, increasing 25 percent year over year to $3.54 in Q3.

Merkle reported Facebook CPCs decreased 22 percent year over year, while CPM rose 38 percent year over year.

“Despite the overall decline in CPC, Facebook investment continues to increase rapidly for advertisers, as traffic has grown substantially over the past year,” said Merkle.

Last week, Nanigans released data showing similar trends in rising investment in Facebook advertising. The firm attributed much of that growth to the Facebook Audience Network.


Opinions expressed in this article are those of the guest author and not necessarily MarTech. Staff authors are listed here.


New on MarTech

    Native video tops social media in brand awareness study
    Worsening economy has more shoppers getting online info before making in-store purchases
    Getting started with the Agile Marketing Navigator: Building a Marketing Backlog
    3 ways to dominate with Google Auction Insights and search intelligence
    Webinar: Work smarter, not harder, to give customers what they want

About The Author

Ginny Marvin
Ginny Marvin was formerly Third Door Media’s Editor-in-Chief, running the day-to-day editorial operations across all publications and overseeing paid media coverage. Ginny Marvin wrote about paid digital advertising and analytics news and trends for Search Engine Land, Marketing Land and MarTech Today. With more than 15 years of marketing experience, Ginny has held both in-house and agency management positions. She can be found on Twitter as @ginnymarvin.

Related Topics

Performance Marketing

Get the daily newsletter digital marketers rely on.

Processing...Please wait.

See terms.

ATTEND OUR EVENTS The MarTech Conference logo.

September 28-29, 2022: Fall

Start Training Now: Master Classes

Start Discovering Now: Spring



The SMX Conference logo.

Start Training Now:: SMX Advanced

November 14-15, 2022: SMX Next

March 8-9, 2022: Master Classes

Webinars

Agencies: Grow Revenue Streams Through Web Accessibility & Compliance

Protect Your Paid Advertising Spend Against Ad Fraud and Invalid Traffic

Build an Integrated Search Strategy Across Google, Amazon and YouTube

See More Webinars
Intelligence Reports

Enterprise SEO Platforms: A Marketer’s Guide

Enterprise Identity Resolution Platforms

Email Marketing Platforms: A Marketer’s Guide

See More Intelligence Reports
Featured White Paper

5 Best Practices for Bringing Together All Your Marketing Data

See More Whitepapers

Receive daily marketing news & analysis.

Processing...Please wait.

Topics

  • Transformation
  • Operations
  • Data
  • Experience
  • Performance
  • Management
  • All Topics
  • Home

Our Events

  • MarTech
  • Search Marketing Expo - SMX

About

  • What is MarTech
  • Contact
  • Privacy
  • Terms Of Use
  • Marketing Opportunities
  • Staff

Follow Us

  • Facebook
  • Twitter
  • LinkedIn
  • Newsletters
  • RSS

© 2022 Third Door Media, Inc. All rights reserved.