Facebook Advertisers see higher Q3 spends & returns, being propelled by Audience Network
According to a new report from Nanigans, a social ad automation company, there has been significant growth in both YoY Facebook ad expenditure as well as on the overall Return on Ad Spend (ROAS). An average increase of +249 percent YoY in ad expenditure was shown in Q3 2016. Furthermore, in comparison to 2015, the average ROAS was also up by 26 percent.
Facebook’s expanded Audience Network was one of the main drivers of this increment. In Q2 2016, brands were also allowed to reach out to non-Facebook users with Facebook adding up video ads to the Audience Network in May. This has opened up the scope for even more types of ad. The off-Facebook audience network expenditure has shown an increment of about four percent from Q2 to Q3 2016. As click-through rates (CTR) rose by 37 percent in the same period, the inventory quality has also not suffered clearly.
A new Global CTR high of around 1.66 percent is another notable Q3 metric. Also, there has been a large drop in the average CPC with clicks dropping to $0.36. This is the lowest figure that has ever been recorded by the Nanigans.
This data has been extracted from the delivery of $600 million that has been spent on the Nanigans platform. As per the Nanigans, most of these advertisers have been the direct response ones. These advertisers majorly hail from the progressive fields of gaming and e-commerce. After tracking all the expenditures, it has been found that 96 percent of it came from mobile app install ads, unpublished page post ads, dynamic ads and domain ads.
The earning figures conclude the new trend in the market indicating how Facebook is continuing with its strategy of bulking up ad offerings, with advertisers paying up to witness the results.
