To arm online marketing teams with essential aggregate insights, today we’re releasing our latest Global Facebook Advertising Trends Report. This report examines key trends seen by companies leveraging Nanigans advertising automation software to manage, optimize, and measure their performance marketing ad campaigns on Facebook during Q3 2016. Our latest advertising report highlights: - CTR, CPM, and CPC trends for Facebook ads by vertical and geographic market - Insights on how marketers are generating higher return on ad spend - Global growth in adoption of Facebook’s Audience Network

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Global Facebook Advertising Benchmark Report
Q3 2016

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KEY TRENDS: ROAS Climbs As Ad Spending Rises
For the 20 highest-spending ecommerce and mobile game
advertisers using Nanigans over the past year, return on ad spend
rose year-over-year in Q3 2016. Meanwhile, these higher returns
spurred those same advertisers to increase quarterly budgets
over the same time frame.

3. Advertising Automation Software
KEY TRENDS: Game Marketers Choose Video
Thanks to continuous growth over the past year, video ads now
constitute 50%+ of game advertisers’ mobile ad spend. Video’s share of
mobile spend is up significantly since Q3 2015.
Video ads have proven to be effective at capturing high-value mobile
game users, and the average CPI has generally trended downward.

4. Advertising Automation Software
KEY TRENDS: Ecommerce Embraces Dynamic Ads
Online retailers using Nanigans continue to invest more ad budget
in Facebook’s Dynamic Ads, with spend increasing quarter-over-
quarter in Q3 2016.
Dynamic Ads can be highly effective in driving new purchases,
generating upsells and growing average order value. Adoption is
likely to continue accelerating among ecommerce advertisers
during the critical Q4 holiday shopping season.

5. Advertising Automation Software
KEY TRENDS: FAN Helps Drive More Clicks
Among Nanigans
advertisers
spending on
Facebook’s
Audience Network
through Q2 and
Q3 2016, CTRs
rose quarter-over-
quarter, driving up
aggregate CTRs in
the process.

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Global CTR
Global Facebook CTRs have reached a new high at 1.66%, rising
41% in Q3 2016 – the largest quarterly increase in two years. The
increase in CTRs in reflective of the continuing and growing
dominance of engaging mobile and video ads, as well as the
dramatic expansion of Facebook’s Audience Network.

8. Advertising Automation Software
Ecommerce CTR
CTRs across ecommerce advertisers jumped 50% quarter-over-quarter.
Additionally, ecommerce advertisers committed 10% more of their
budgets to mobile inventory compared to Q2 2016.
Now commanding over 71% of total Facebook ad spend from online
retailers, mobile has driven approximately 4X higher CTRs over desktop
throughout the past year for these advertisers.

9. Advertising Automation Software
Gaming CTR
In the gaming sector, CTRs reached 0.85% in Q3 2016, up 23%
quarter-over-quarter and 32% year-over-year. Increased click
engagement across ad types likely indicates Audience Network
growth as a dominant factor in this quarter’s trend.

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Global CPM
Aggregate global CPMs dropped by 9% quarter-over-quarter, but
remain up 15% on a year-over-year basis. This represents the
smallest year-over-year change since Nanigans began conducting
these reports in 2013. Currently at $5.94, average CPMs have
returned to the same level observed in Q1 2016.

12. Advertising Automation Software
Ecommerce CPM
In part due to growth in the Audience Network, which tends to
command lower ad prices than native Facebook inventory,
ecommerce CPMs dipped 22% in Q3. The year-over-year change
stands at -10%. The downward trend is unlikely to continue,
however. Online retail advertisers typically see some of the
greatest CPM changes during the Q4 holiday season.

13. Advertising Automation Software
Gaming CPM
Game advertiser CPMs remained virtually flat, rising by only $0.01
quarter-over-quarter and falling 6% year-over-year. This marks
the gaming vertical’s sixth straight quarter of aggregate CPMs
remaining between $4 and $5.

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Global CPC
In line with a significant increase in CTRs and a moderate
decrease in CPMs, Facebook CPCs declined 35% quarter-over-
quarter and 34% year-over-year. At $0.36, CPCs are the lowest
rate observed since Nanigans began conducting these reports in
2013.

16. Advertising Automation Software
Ecommerce CPC
Ecommerce advertisers experienced a drop in CPCs this quarter,
which now stand at $0.26. Thanks primarily to higher CTRs and
lower average pricing for Audience Network inventory, CPCs
declined by 48% quarter-over-quarter and 54% year-over-year.

17. Advertising Automation Software
Gaming CPCs
Changes in gaming advertiser CPCs were more moderate than
other verticals. The current average of $0.54 is on par with that of
Q1 2016. The figure represents a drop of 19% quarter-over-
quarter and 29% year-over-year.

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Geographic Trends
The Facebook advertising ecosystem can vary from region to
region, and marketers should always tailor their performance
goals and strategies for each geographic market.
To give advertisers insights on global trends, Nanigans analyzed
campaigns targeted to specific countries in Q3 2016.

20. Advertising Automation Software
Geographic Trends
To ensure statistical significance, country spend, clicks and
impression data is grouped into geographic regions:
1) The Americas
2) Europe, Middle East, and Africa (EMEA)
3) Asia-Pacific (APAC)
Each region accounts
for tens of millions of
dollars of Facebook ad
spend through
Nanigans.

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Geographic Trends

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About This Report
This report is representative of Facebook® ad impressions delivered by
customers leveraging Nanigans advertising automation software. It
includes ad spend on Facebook desktop, Facebook mobile, and
Facebook Audience Network, and excludes Facebook Exchange and
Instagram.
The vast majority of Nanigans customers are direct response advertisers
at ecommerce, gaming, and other Internet and mobile companies. In Q3
2016, 96% of spend from these direct response advertisers was
allocated to four Facebook ad products: Unpublished page post ads,
mobile app install ads, domain ads, and dynamic ads.
The majority of these direct response advertisers 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 may not necessarily be a proxy
for the overall Facebook marketplace.

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