This document discusses trends in Facebook video advertising from 2016. It finds that the share of Facebook ad spend allocated to video increased 57% from January to November 2016 compared to 2015. Nearly half (48%) of ad spend by game marketers on Facebook in 2016 was on video ads, up from 21% in 2015. 65% of advertisers that spent on video ads in 2015 increased their video budgets in 2016. The share of video ad spend directed to Facebook's Audience Network, which extends ads to mobile apps and websites, grew from less than 1% in May 2016 to close to 5% in November 2016. Video ad adoption on Instagram is also climbing rapidly.

1. Advertising Automation Software
Facebook Video Advertising Rewind
BENCHMARKS AND TRENDS

2. Advertising Automation Software
Advertisers are Flocking to Facebook Video Ads
Video ad formats offer brand marketers a powerful storytelling
tool for increasing awareness.
They also provide direct response advertisers a compelling way
to drive meaningful actions – like purchases, app downloads, or
lead form submissions.
As 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.

3. Advertising Automation Software
What’s in this presentation
Video ad share and spend growth in 2016
Facebook Audience Network video ad spend growth
How video growth on Facebook extends to Instagram

4. Video Dominates Growth as Ad
Budgets Soar

5. Advertising Automation Software
Video Share of all Facebook Spend
The 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.

6. Advertising Automation Software
Game Industry Facebook Ad Spend
While companies across Nanigans’ advertiser base ramped
up adoption of the format, much of the growth came form
those in the gaming industry.
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.

7. Advertising Automation Software
Advertisers Growing Facebook Video Ad Budgets
As advertisers find greater success with video on
Facebook, they are increasing budgets as a result.
The shift in ad spend allocation in favor of video is a
clear sign of the format’s effectiveness on Facebook,
particularly when optimizing campaigns for direct
response goals like app installs and reengagement.

8. Advertising Automation Software
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.

9. Video Makes Gains on Facebook
Audience Network

10. Advertising Automation Software
Audience Network Share of Facebook Video Ad
Spend
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.
Audience Network can deliver greater reach and
even higher ROI, and video is playing a growing role.

11. Advertising Automation Software
Audience Network Share of Facebook Video Ad
Spend
For campaigns in which marketers activate Audience Network, Facebook will
intelligently deliver ads to non-Facebook apps and websites in its network only when
performance is expected to match or beat Facebook-native placement.
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.

12. Adoption of Video Ads on Instagram
Climbs Alongside Facebook

13. Advertising Automation Software
Adoption of video ads on Instagram climbs
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.

14. Advertising Automation Software
Adoption of video ads on Instagram climbs
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. Meanwhile, total ad spend
dedicated to video on Instagram has also risen
significantly over time.

15. Advertising Automation Software
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