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Performance advertisers in Q1 2019 spent aggressively on dynamic ads and — once again — Stories advertising.
During its Q4 earnings call in late January, Facebook announced that Instagram Stories reached a daily user count of 500 million. That’s up from 400 million in June 2018. The company also reported that 2 million advertisers are now buying Stories ads on Instagram and Facebook.
Advertisers are clearly noticing the Stories “scale”, and spending accordingly. Our new Facebook benchmark data shows that across a same-advertiser set using Nanigans, advertisers leveraging Stories are escalating ad spend. In Q1, budgets dedicated to the Stories format increased by 14% year-over-year and 9% quarter-over-quarter.
It’s worth noting that the share of overall ad spend going to Stories ads is still under 5%. The rest is going to Facebook and Instagram news feed ads. But each quarter, the Stories format gets another small chunk of ad spend, proving it can perform at the same level as feed-based ads.
Click-through rates for Stories ads jumped by 14% compared to Q1 2018. CPMs also saw sizeable YoY increases of 89%, indicating a robust market with high-value consumers. Costs on a per-click basis grew by 66% compared to a year ago.
Brands that follow the proper ad creative guidelines for Stories ads could see a 50%-70% increase in mobile app ROAS (return on ad spend). Fitness guru and Nanigans customer Kayla Itsines (via her mobile app, Sweat) is one advertiser investing in Stories ads and seeing enviable mobile app ROAS.
Regarding dynamic ads, transaction-focused companies continued to funnel budgets into this ad type. Year-over-year dynamic ad spend growth in Q1 for these companies was 77%, underscoring the effectiveness that dynamic ads on Facebook and Instagram have at driving ecommerce purchases. For companies focused on transactions, dynamic ads also delivered far better click-through rates (3.47%) than non-dynamic ads (2.08%).
For more Facebook advertising insights, download our full Global Facebook Advertising Report – Q1 2019. You’ll get the latest data on Stories and dynamic advertising, as well as overall CTR, CPM, and CPC benchmarks by advertising objective and geographic market.