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The world of digital advertising moves quickly, and staying on top of trends can be a challenge for even the savviest performance marketers. To help position marketing teams for success, we’ve broken down some key factors that Facebook and Instagram advertisers should incorporate into 2016 planning and budgets.
Mobile’s reign is here to stay. In 2016, more than half of Facebook users will access the site solely on mobile devices. While desktop will continue to be a significant factor, advertisers will need to increasingly put their efforts where their customers spend the most time: on smartphones.
Facebook aside, global mobile marketing will also reach two important milestones this year. According to eMarketer, mobile ad spend will surpass $100 billion and account for more than half of all digital ad expenditure worldwide.
Data and analytics will be a key growth area for Facebook and Instagram marketing investment in 2016, indicated by the rising popularity of advertising automation. As digital advertising becomes more essential for driving revenue, proving and maximizing return on investment requires deep business intelligence analytics, advanced workflow automation and predictive machine learning optimization technology.
When marketers can track success like purchases and app installs across devices and advertising channels, growth opportunities become much easier to identify. Furthermore, when revenue can be accurately attributed to specific campaigns, audiences, creative, devices or channels, advertisers are armed with the data they need to scale successes.
In 2015, marketers worldwide were given access to Instagram’s native ads with direct response features that fit seamlessly into a user’s mobile feed.
With an engaged mobile audience of 400 million users at their fingertips, digital marketers have been quick to test and scale campaigns on Instagram. In fact, 31% of advertisers using Nanigans software adopted the channel in just the first three months of availability.
The Instagram advertising landscape is still young, yet early direct response results are promising. For example, a large online retailer increased return on ad spend 179% in just 60 days, while another drove a 219% increase in purchase rates. All early indicators point to Instagram becoming a more critical revenue-generating channel for advertisers throughout 2016.
Marketers are under constant pressure to prove the value of their advertising efforts. This capability is especially important in 2016, when ROI will be thrust even further into the spotlight as new measurement, optimization and automation tools make it easier to track digital campaign performance than ever before.
As more marketing teams move towards in-house control of their programmatic advertising in 2016, they can elevate their thinking around ROI to focus on the true customer lifetime value driven by ad campaigns.
In 2015, ad blocking stirred up the world of digital advertising. As ad blockers slowly grow in some markets, Facebook, Instagram and other platforms that feature unobtrusive native ads will stay above the fray. Publishers that follow Facebook and Instagram’s lead will offer the most value to users and to advertisers.
According to BI Intelligence, native ad revenue is expected to hit $13.9 billion in 2016, up from just $4.7 billion in 2013. A significant majority of that growth is projected to be driven by native ads on social platforms like Facebook.
As the Facebook ad ecosystem continues to rapidly evolve, it’s up to strategic digital advertisers to take advantage of every new opportunity that arises. Take a complete look at what’s ahead with our latest guide: Get the 2016 Marketer’s Guide to Facebook Advertising!