Facebook Video Advertising Rewind: Benchmarks and Trends from 2016

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Advertising Automation Software

FACEBOOK VIDEO ADVERTISING REWIND Benchmarks and Trends from 2016

Advertisers are flocking to Facebook video ads

Video ad formats offer brand marketers a powerful storytelling tool for increasing awareness.

2016 proved they also provide direct response advertisers a compelling way to drive meaningful actions—like purchases, app downloads, or lead form submissions.

What’s in this PresentationAs CMOs scale investment in video advertising on Facebook to advance real revenue growth, it’s important to understand how the market is trending. The data and insights in this report will help inform more strategic decisions on your Facebook advertising plans for the new year ahead.

In this report, you’ll find exclusive Facebook insights on: Video ad share and spend growth Facebook Audience Network video ad spend

growth How video growth on Facebook extends to

Instagram

About This Report: All data in this report is based on an analysis of companies using Nanigans advertising automation software to advertise on Facebook.

Video Dominates Growth as Ad Budgets Soar

Video Dominates Growth as Ad Budgets SoarThe share of Facebook ad spend allocated to video increased 57% from January to November 2016, compared to the same period of time in 2015 across the same advertiser set.

Nearly half of all 2016 Facebook ad spend by game marketers was on video ads, primarily in the form of mobile app install campaigns.

This 48% share represents a substantial increase from video’s share of 21% in 2015.

While companies across Nanigans’ advertiser base ramped up adoption of the format, much of the growth came from those in the gaming industry.

65% of all Nanigans advertisers that spent on video ads in the first 11 months of 2015 increased video budgets during the same period in 2016.

Shorter-term trends underscore this growth as well, with average Facebook video ad budgets increasing 63% between May and November 2016.

As advertisers find greater success with video on Facebook, they are increasing budgets as a result.

Video Makes Gains on Facebook Audience Network

With Facebook Audience Network, advertisers can extend their campaigns to new and existing customers through ads on the mobile apps and websites they use most outside of Facebook.

2016 saw an increasing share of video ads being delivered outside of Facebook—a clear indication of the growing value of Audience Network for video advertisers.

Among advertisers that enabled Audience Network for video ads, close to 5% of spend was directed toward off-Facebook inventory in November 2016. This share was less than 1% just six months prior in May 2016, across the same set of advertisers.

Adoption of Video Ads on Instagram Climbs Alongside Facebook

Though the video advertising ecosystem is much younger on Instagram than on Facebook, the format continues to gain traction thanks to the high ROI it can generate for marketers.

On average, Instagram advertisers have increased their spend on video by more than 7X the levels seen in May 2016.

This growth rate actually outpaces corresponding budget growth on Facebook, underscoring the appetite among advertisers to scale video campaigns across Instagram’s valuable audience of users.

40% of companies using Nanigans to advertise on Instagram allocated a portion of their ad spend to video ads.

For more reports, guides and case studies, visit nanigans.com

Facebook Video Advertising Rewind: Benchmarks and Trends from 2016

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