2. About This Report
This report is representative of Facebook®
ad impressions delivered by customers
leveraging Nanigans advertising automation software. It includes ad spend on both
Facebook desktop and Facebook mobile, and excludes Facebook Exchange.
For reporting purposes Nanigans categorizes Facebook ad types to align with broad direct
response marketing objectives as follows: Unpublished Page Post (All) includes Link, Photo,
Video, and Multi-Product Unpublished Page Post Ads. Mobile App Install (All) includes
standard (image) and Video Mobile App Install Ads. Domain includes External URL Ads
delivered on the right-hand side on Facebook desktop. All Other Ad Types includes other ad
types such as Page Post Ads and Desktop App Install Ads.
The vast majority of Nanigans customers are direct response advertisers at ecommerce,
gaming, and other internet and mobile companies. Many 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
should not be used as a proxy for the overall Facebook marketplace.
The data in this report should not be compared to any prior or future benchmark reports
due to variations in the dynamic nature of the data set each new quarter.
2
Nanigans | Advertising Automation
About Nanigans
Nanigans develops world-class multichannel advertising
automation software that enables performance marketing teams
to take control of their digital advertising in-house.
Since 2010, Nanigans has been chosen by the world’s largest
ecommerce, gaming, and other internet and mobile companies
such as eBay, Wayfair, and Zynga. Offered through a SaaS model,
Nanigans software features sophisticated tools for cross-channel
ROI, predictive optimization, real-time business intelligence, end-
to-end workflow automation, and unified data activation.
3. 3
Nanigans | Advertising Automation
New Facebook ad products gain broader adoption in Q1 2015
following a competitive Q4 2014
This report highlights key trends seen by
companies leveraging Nanigans advertising
automation software to manage, optimize,
and measure their performance marketing ad
campaigns on Facebook.
Key Takeaways
Global CTRs increased 17% quarter-
over-quarter and 260% year-over-year,
indicating that advertisers continue to
effectively reach and engage relevant
audiences on Facebook.
Advertisers increasingly adopted newer
Facebook ad products in Q1, with spend
to video ads increasing 2.8X quarter-over-
quarter and spend to Multi-Product Ads
increasing 5.2X quarter-over-quarter.
Due to seasonality and following a
competitive Q4 holiday shopping season
with increased demand, global CPCs
decreased 17% quarter-over-quarter and
CPMs decreased 3% quarter-over-quarter.
Video Ad Spend - Global
Q4 2014 Q1 2015
2.8XQUARTER / QUARTER
Multi-Product Ad Spend - Global
Q4 2014 Q1 2015
5.2XQUARTER / QUARTER
Composition of Spend by Ad Type - Global
All Other
Ad Types
Domain Mobile App
Install (All)
Unpublished
Page Post (All)
Q1 2014 Q2 2014 Q3 2014 Q4 2014 Q1 2015
0%
20%
60%
80%
100%
40%
Advertisers leveraging Nanigans
software primarily have direct response
goals, and dedicated the majority of
budgets to Unpublished Page Post
Ads, Mobile App Install Ads, and
Domain Ads. These three ad categories
represented 97% of spend through
Nanigans in Q1 2015.
4. 4
Nanigans | Advertising Automation
CTR
Click-through rate
Global CTRs for Facebook ads continued
to rise in Q1 2015, signaling growing
engagement rates across desktop and
mobile. Average CTRs in Q1 were 0.81%,
up 17% from Q4 2014 and up 260% from
Q1 2014.
Nanigans customers in the ecommerce
vertical saw CTRs increase 12% quarter-
over-quarter and 281% over the previous
year.
Companies advertising desktop and
mobile games saw average CTRs dip
9% in Q1. Mobile App Install Ad CTRs
increased 3% quarter-over-quarter, but
decay in other ad units brought the over
all average down. A longer-term view
shows increasing engagement among
gaming advertisers, with CTRs increasing
150% year-over-year.
CTR - Global
CTR - Ecommerce
CTR - Gaming
Q1 2014 Q2 2014 Q3 2014 Q4 2014 Q1 2015
+17%QUARTER / QUARTER
+260%YEAR / YEAR
+12%QUARTER / QUARTER
+281%YEAR / YEAR
-9%QUARTER / QUARTER
+150%YEAR / YEAR
Q1 2014 Q2 2014 Q3 2014 Q4 2014 Q1 2015
0.65%
0.26%
Q1 2014 Q2 2014 Q3 2014 Q4 2014 Q1 2015
0.87%
0.23%
0.81%
0.22%
5. 5
Nanigans | Advertising Automation
CPC
Cost per click
Costs on a per-click basis for Facebook
ads decreased 17% globally in Q1 2015
to an average of $0.53 among advertisers
leveraging Nanigans software. Nanigans
attributes the return of CPCs to pre-
holiday levels to less demand following
the competitive Q4 ecommerce shopping
season.
Less post-holiday demand in the
marketplace is the primary cause behind
the seasonal 32% quarter-over-quarter
decrease in ecommerce CPCs. From Q1
2014, CPCs were down 14%.
Gaming advertisers experienced average
CPCs of $0.80 in Q1, which was up 11%
from the previous quarter. Year-over-year
CPC growth was 69%.
CPC - Global
CPC - Ecommerce
CPC - Gaming
Q1 2014 Q2 2014 Q3 2014 Q4 2014 Q1 2015
-17%QUARTER / QUARTER
+4%YEAR / YEAR
-32%QUARTER / QUARTER
-14%YEAR / YEAR
+11%QUARTER / QUARTER
+69%YEAR / YEAR
$0.50
$0.43
Q1 2014 Q2 2014 Q3 2014 Q4 2014 Q1 2015
$0.80
$0.47
Q1 2014 Q2 2014 Q3 2014 Q4 2014 Q1 2015
$0.51
$0.53
6. 6
Nanigans | Advertising Automation
CPM
Cost per 1,000 impressions
CPMs on Facebook desktop and mobile
ads combined decreased 3% from the
highly competitive Q4 holiday season to
an average of $4.26. This decrease can
be attributed primarily to seasonality
as overall demand decreased in Q1,
driven mainly by the ecommerce market.
Compared to Q1 2014, CPMs increased
273% among Nanigans customers.
Ecommerce advertisers saw CPMs
decrease 24% in Q1, averaging $3.74.
Year-over-year growth represented a
227% increase from Q1 2014.
For gaming companies, average CPMs
remained neutral at $5.17, indicating
there is still heavy competiton and
demand in this vertical through Q1. CPMs
increased 324% year-over-year.
CPM - Global
CPM - Ecommerce
CPM - Gaming
-3%
QUARTER / QUARTER
+273%
YEAR / YEAR
-24%
QUARTER / QUARTER
+227%
YEAR / YEAR
0%
QUARTER / QUARTER
+324%
YEAR / YEAR
$4.26
$1.14
Q1 2014 Q2 2014 Q3 2014 Q4 2014 Q1 2015
$1.14
$3.74
Q1 2014 Q2 2014 Q3 2014 Q4 2014 Q1 2015
$5.17
$1.22
Q1 2014 Q2 2014 Q3 2014 Q4 2014 Q1 2015