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How Does Your Facebook Advertising Performance Stack Up?

Written by: Juliana Casale, Director of Marketing

How does your Facebook advertising campaign performance compare to your competitors? Marketing teams that keep this question constantly in their minds will be better situated to spot emerging advertising trends and keep up with a swiftly evolving digital ad landscape.

These stats from our Q2 2016 Facebook Advertising Benchmark Report — based on Facebook® ad impressions on Unpublished page post ads, mobile app install ads, domain ads, and dynamic ads delivered by direct response advertisers at ecommerce, gaming, and other Internet and mobile companies leveraging Nanigans advertising automation software — will help inform your Facebook advertising strategy for 2016 and help you win over valuable customers in the upcoming holiday season.

Click-Through Rate (CTR)

CTR global Facebook advertising Q2 2016

Global Facebook CTRs dipped slightly quarter-over-quarter, but remain up 35% from Q2 2015. At 1.18%, CTRs remain at the second-highest level observed since Nanigans began conducting these benchmark reports in 2013.

CTR ecommerce Facebook advertising Q2 2016

Ecommerce ad CTRs held largely steady quarter-over-quarter, decreasing from 1.32% in Q1 to 1.27% in Q2 2016. On a year-over- year basis, CTRs in the vertical rose by 46%. The relative stability in CTRs for ecommerce advertisers this quarter mirrors the trend seen in Q2 2015, when CTRs remained at 0.87%—the same rate Nanigans observed the prior quarter.

CTR gaming Facebook advertising Q2 2016

Game advertisers on Facebook saw overall CTRs of 0.69%, down 18% quarter-over- quarter, but up 6% year-over-year. Despite the short-term decrease, game advertiser CTRs remain within the 0.6% to 0.8% range sustained ever since Q2 2014.

Cost Per 1,000 Impressions (CPM)

CPM global Facebook advertising Q2 2016

In Q2 2016, average Facebook ad CPMs returned to levels seen in Q4 2015. Over the past year, CPMs have trended gradually upward, averaging a 10% increase each quarter. This moderate trend reflects a more stable marketplace when compared to the 36% average quarterly CPM increases seen over 2013 and 2014. The $6.52 global CPM in Q2 2016 was 10% higher quarter- over-quarter and 63% higher than Q2 2015.

CPM ecommerce Facebook advertising Q2 2016

CPMs for ecommerce advertisers rebounded from a 19% dip last quarter, but remain 13% below the Q4 2015 high of $7.35. Summer is typically a slower time of the year for aggressive ecommerce advertising, but it’s likely CPMs will rise in Q3 and Q4 as companies begin seeding back-to-school and holiday ad campaigns.

 CPM gaming Facebook advertising Q2 2016

Gaming CPMs remained consistent in Q2 2016, rising just 2% quarter-over-quarter to average $4.56. This is representative of a long-standing trend in the gaming sector on Facebook, where CPMs have held between $4.06 and $4.92 ever since Q2 2015.

Cost Per Click (CPC)

CPC global Facebook advertising Q2 2016

The trend in average CPCs largely mirrored that of CPMs in Q2 2016. Following a 16% quarter-over-quarter decrease, CPCs rebounded to $0.55—up 16% from Q1. Longer-term, global CPCs on Facebook have remained consistent, especially outside the competitive Q4 holiday advertising season. This consistency has been driven by increasing CTRs, which often outpace rising average CPMs.

CPC ecommerce Facebook advertising Q2 2016

Ecommerce advertisers experienced an 11% CPC increase from Q1 2016. Despite being 31% higher year-over-year, the latest $0.50 figure remains well below the averages seen in Q3 and Q4 2015.

CPC gaming Facebook advertising Q2 2016

Gaming CPCs rose by 24% quarter-over- quarter to reach $0.66. CPCs have vacillated up and down over the past year, but have remained between $0.76 and $0.54, a range that is likely to hold going into Q3 2016.

Q2 2016 Facebook Ad Benchmark Report

Stay ahead of the competition! Access additional Facebook advertising benchmarks stats in our full report.
Download the Report

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