Report 2016 the future of facebook advertising

The Future of Facebook and Instagram Advertising New Data on Facebook and Instagram Ad Trends in North America, Europe, Asia Pacific, and Latin America

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The Future of Facebook and Instagram Advertising

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Table of Contents

North America

Europe, Middle East, and Africa

Asia Pacific

North America - Facebook Trends

Europe/Middle East/Africa - Facebook Trends

Asia Pacific - Facebook Trends

Latin America - Facebook Trends

North America - Fast Facts

Europe/Middle East/Africa - Fast Facts

Asia Pacific - Fast Facts

Latin America - Fast Facts

North America - Instagram Trends

Latin America

The Future of Facebook and Instagram Advertising

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Introduction

For marketers, using Facebook’s paid tools to expand your reach is a no-brainer.

Facebook ads have plenty of great features that enable you to effectively target your posts to a specific audience. This makes it easier to deliver content to the people that actually want to see it.

Plus, Facebook’s social endorsement and retargeting features help you build credibility and relevance when users see and interact with your ads.

In return, your audience has the power to actually engage with your ads, keeping you accountable for the quality of your content and the people you are targeting.

But getting your content to the right people isn’t just about creating great content for your target audience. You also need to understand your competitive market to effectively tailor your ad strategy.

In this ebook you’ll learn: The latest trends in Facebook advertising for North America, Europe/Middle East/Africa, Asia Pacific, and Latin America.

Which types of Facebook Ads are becoming more or less competitive in each market based off of Click Through Rate (CTR), Cost Per Click (CPC) ad distribution, and budget.

What you, as a marketer, can do to outshine the competition and improve your ad campaigns according to each trend.

That’s where Socialbakers comes in. Socialbakers is changing the way companies measure, optimize, and get value from their social media presence. Learn more about how they can help grow your business here.

In this ebook, Socialbakers leveraged their comprehensive social media data set to conduct an analysis of over 4.5 million ads posted on Facebook and Instagram between January 2015 and February 2016. They teamed up with HubSpot, who have extensive knowledge of inbound marketing, to deliver the latest in the world of social advertising.

Read on to learn about the latest ad trends and what you can do to improve your ad campaign strategy.

The Future of Facebook and Instagram Advertising

North America Facebook Trends

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The Future of Facebook and Instagram Advertising

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North America Facebook Trends #1 POST ENGAGEMENT ADS ARE BECOMING MORE VALUABLE FOR MARKETERS. Why? Advertisers that are using post engagement ads have seen a 142% increase in CTR between 2015 to 2016. At the same time, CPC has decreased by 83% and only 19% of all ads are post engagement ads. This means the competition for post engagement ads isn’t very high, making post engagement ads more valuable.

Note: This trend has three graphs associated with it.

1. Facebook Post Engagement CPC 1) North Am. Facebook Post Engagement CPC

Post engagement ads are all about getting your audience to share and comment on your posts.

Given that these ads are becoming more valuable to marketers, now is a great time to start making use of post engagement ads. Figure out what your most remarkable content is, and use it to your advantage to expand your reach. Don’t just spray and pray with your posts. Focus on writing attention-grabbing headlines, and write posts for your target audience so that your ads are directed towards their needs.

$0.16 16% $0.14 14% $0.12 12% $0.10 10% $0.08 8% $0.06 6% $0.04 4% $0.02 2% $0.00 0%

What marketers can do:

Jan 2015 Feb 2015 Mar 2015 Apr 2015 May 2015 Jun 2015 Jul 2015 Aug 2015 Sep 2015 Oct 2015 Nov 2015 Dec 2015 Jan 2016 Feb 2016 Jan ‘15 Feb ‘15 Apr ‘15 May ‘15 Jun ‘15 Jul ‘15 Aug ‘15 Sep ‘15 Oct ‘15 Nov ‘15 Dec ‘15 Jan ‘15 Feb ‘16

The Future of Facebook and Instagram Advertising

North America Facebook Trends

2. Facebook Post Engagement CTR

3. Facebook CTR

9.0% 900%

9.0% 900%

7.5% 750%

7.5% 750%

6.0% 600%

6.0% 600%

450% 4.5%

4.5% 450%

300% 3.0%

3.0% 300%

150% 1.5%

1.5% 150%

2) North Am. Facebook Post Engagement CTR

0% 0%

Jan‘15 2015 Feb Feb ‘15 2015 Mar 2015 2015 Aug 2015 Oct Nov‘15 2015 Dec 2016 2016 Jan Apr2015 ‘15 Apr May ‘15 MayJun ‘15Jun 2015 Jul ‘15Jul 2015 Aug ‘15 SepSep ‘15 2015Oct ‘152015 Nov Dec 2015 ‘15 Jan Jan ‘15 FebFeb ‘16

5) North Am. Facebook CTR Feb-15

Feb-16

0% 0%

Mobile App Installs

Page Likes

Post Engagement

Video Views

Website Clicks

Website Conversions

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The Future of Facebook and Instagram Advertising

North America Facebook Trends #2 VIDEO ADS ARE INCREASING IN POPULARITY. AS THEY CONTINUE TO INCREASE IN POPULARITY, CPC WILL INCREASE. Why? Advertisers have increased the amount of their budget spent on video ads from 2015 to 2016 by 150%. As more advertisers use video ads, and their popularity increases, the CTR advertisers see is decreasing. So far, the CPC has not yet increased, which often happens as competition increases.

4. Video Views ads share of Facebook ad budget

4) North Am. % of Facebook budget on Video Views

Since CPC hasn’t changed yet, now is the time to make use of video ads. Remember that News Feed videos start playing silently automatically, so be sure to tell a compelling story that works both silently/with closed captioning and with sound. Focus on grabbing your audience’s’ attention within the first few seconds to entice viewers as they scroll through their News Feeds.

25%

20%

15%

10%

5%

0%

What marketers can do:

Jan 2014 Jan ‘14

Mar 2014 Mar ‘14

May 2014 May ‘14

Jul 2014 Jul ‘14

Sep 2014 Sep ‘14

Nov 2014 Nov ‘14

Jan 2015 Mar 2015 May 2015 Jul 2015 Sep 2015 Nov 2015 Jan 2016 Jan ‘15 Mar ‘15 May ‘15 Jul ‘15 Sep ‘15 Nov ‘15 Jan ‘16

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The Future of Facebook Advertising

The CTR for Video Views on Facebook decreased by 13% from February 2015 to February 2016.

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The Future of Facebook Advertising

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The CPC for Video Views on Facebook did not change from February 2015 to February 2016.

The Future of Facebook and Instagram Advertising

North America Facebook Trends #3 PAGE LIKE CAMPAIGNS ARE BECOMING LESS POPULAR AND LESS EXPENSIVE FOR MARKETERS. Why? CPC on Page Like campaigns have decreased 33% and the amount advertisers are budgeting for Page Like campaigns have decreased by 70%.

7. Facebook Page Like CPC 7) North Am. Facebook Page Like CPC $0.30 30%

$0.25 25%

The Facebook ad spend distribution for Page Likes

$0.2 20%

decreased by 70% from February 2015 to February

15% $0.15

2016. As more Page Like ads have saturated people’s

10% $0.1

News Feeds, CPC on these ads have decreased.

5% $0.5

0% $0

Jan 2015 2015‘15May Jun 2015‘15Jun 2015 Aug 2015 Nov Dec‘15 2015 Jan Jan ‘15 2016 Feb Jan 2015 ‘15 Feb Feb2015 ‘15 Mar Apr ‘15 AprMay Jul ‘15Jul 2015 Aug ‘15 SepSep ‘15 2015 OctOct ‘152015Nov ‘152015 Dec Feb2016 ‘16

What marketers can do: As more Page Like ads have saturated people’s News Feeds, CTR on these ads have decreased.

Just because CPC is going down, doesn’t mean marketers should use more of these ads.

Instead, use Page Like ads to retarget users who have previously engaged with your content.

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The Future of Facebook Advertising

North America Fast Facts

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The Future of Facebook and Instagram Advertising

North America Fast Facts • In February 2016, Website Conversion ads made up 39% of all ads on Facebook, and 39% of total spend.

• Budget allocation for Website Conversion ads increased by 50% in one year.

• Budget allocation for Post Engagement ads decreased by 60% • Budget allocation for Page Like ads decreased by 70%.

• Budget allocation for Video ads increased by 150%.

• Mobile App Installs and Website Conversions ads are significantly more expensive than other ad types.

• Post Engagement ads are currently the least expensive ads.

• Except for Mobile App Installs and Post Engagement ads, most CPC rates have remained steady over the last year.

• Only 3% of budget is spent on Page Like ads.

• Less than 1% of advertisers’ budget is spent on Lead Generation ads.

• 12% of budget is spent on Video View ads, up from 8% the previous year.

• Advertisers are spending most of their budget on Website Conversions.

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The Future of Facebook Advertising

North America Instagram Trends

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The Future of Facebook and Instagram Advertising

North America Instagram Trends #1 INSTAGRAM ADS ARE SLOWLY BECOMING MAINSTREAM IN NORTH AMERICA AND COMPETITION IS INCREASING. Why? CPC on Instagram is rapidly increasing since these ads became popular in late 2015.

Additionally, average CTR has decreased significantly over the last few months.

9. Instagram average CPC

10. Instagram CTR

9) North Am. Instagram average CPC

10) North Am. Instagram CTR

2.0% 200%

400% $4

$3.2 320%

150% 1.5%

$2.4 240% 100% 1.0% $1.6 160%

50% 0.5%

$0.8 80%

$0 0%

AugAugust ‘15

September Sep ‘15

October Oct ‘15

November Nov ‘15

December Dec ‘15

January Jan ‘16

February Feb ‘16

0% 0%

August Aug ‘15

What marketers can do: With any increase in competition, marketers must become smarter with their ads. Improved targeting and ad creative is a must.

Always make sure your ads on Instagram include a high quality Instagram-appropriate image, a value proposition, and a clear CTA. Try out different types of posts for your ads – motivational, contests, product-centric, etc. – and be sure to share a story with your ad that’ll captivate your audience.

September Sep ‘15

October Oct ‘15

November Nov ‘15

December Dec ‘15

January Jan ‘16

February Feb ‘16

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The Future of Facebook Advertising

Europe/Middle East/Africa Facebook Trends

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The Future of Facebook and Instagram Advertising

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Europe/Middle East/Africa Facebook Trends #1 VIDEO ADS ARE BECOMING A LESS ENGAGING AD UNIT

Why? Video ads are seeing a decrease in CTR by 57%. There has been a steady decline in click-through on video ads in Europe/Middle East/Africa due to a saturated market and less engaging ads.

11. Facebook Video Views CTR

10) EMEA Facebook Video Views CTR

Work on engaging your audience with video ads by capturing their attention in the first few seconds, telling your story with and without sound, and creating your video story for your audience. Be sure to focus on creating quality video ads without relying too much on long-length videos.

6% 600%

5% 500%

4% 400%

3% 300%

2% 200%

100% 1%

0% 0%

What marketers can do:

Jan ‘15 2015 Feb 2015 2015 Aug 2015 Nov 2015 Dec Dec‘15 2015 Jan 2016 Jan Feb2015 ‘15 Mar Apr2015 ‘15 AprMay ‘15 MayJun ‘15Jun 2015 Jul ‘15Jul 2015 Aug ‘15 SepSep ‘15 2015 OctOct ‘152015Nov ‘15 ‘15 Feb Feb2016 ‘16

The Future of Facebook and Instagram Advertising

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Europe/Middle East/Africa Facebook Trends #2 POST ENGAGEMENT ADS ARE BECOMING LESS POPULAR AND SEEING DECREASING COMPETITION. Why? Advertisers are spending 30% less on post engagement ads, but the amount of post engagement ads is slightly increasing (by 26%), suggesting their lower cost is allowing more advertisers to try them out.

As an aggregate, advertisers are using this type of ad unit more, and spending less of their budget. This suggests these ads have become a more popular, less expensive way to advertise on Facebook.

11. Facebook Post Engagement total share of budget

12. Facebook Post Engagement CTR 12) EMEA Facebook Post Engagement CTR

40%

5.0% 500%

11) EMEA Facebook Post Engagement total spend of budget

4.0% 400% 30% 3.0% 300% 20% 2.0% 200%

10%

0%

1.0% 100%

Jan-14 Jan ‘14

Jun-14 Jun ‘14

Nov-14 Nov ‘14

Apr-15 Apr ‘15

Sep-15 Sep ‘15

Feb-16 Feb ‘16

0%

Jan 2015 2015‘15May Jun 2015‘15Jun 2015 Jul 2015 Oct Nov‘15 2015 Dec Dec ‘15 2015 Jan Jan 2015 ‘15 Feb Feb2015 ‘15 Mar Apr ‘15 AprMay Jul ‘15 Aug Aug ‘15 2015 SepSep ‘15 2015Oct ‘152015 Nov Jan2016 ‘15 Feb Feb2016 ‘16

What marketers can do: Try out different types of post engagement ads and different targeting features to see what works well for your business. Don’t forget to use Facebook’s social endorsement feature -- which shows users which friends have already Liked your Page or post – to help prove your brand’s social credibility and expand your reach.

The Future of Facebook and Instagram Advertising

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Europe/Middle East/Africa Facebook Trends #3 VIDEO ADS ARE BECOMING INCREASINGLY MORE POPULAR. Why? As of January 2016, they were 15% of all ads on Facebook, which was a 1400% yearon-year increase. Video ads are also a larger portion of marketers’ budgets, surpassing 25% of total budget in February 2016.

13. Facebook Video13) Views share of ad format EMEA Facebook Video Views total distribution of ads

14. Facebook Video Views share of ad budget 14) EMEA Facebook Video Views total ad spend

20%

40%

15%

30%

10%

20%

5%

10%

0%

Jan2014 ‘14 Jan

Jun2014 ‘14 Jun

Nov2014 ‘14 Nov

Apr2015 ‘15 Apr

Sep 2015 ‘15 Sep

‘16 Feb 2016

0%

Jan2014 ‘14 Jan

Jun2014 ‘14 Jun

Nov2014 ‘14 Nov

Apr2015 ‘15 Apr

What marketers can do: The more video ads there are out there, the more you’ll have to compete for your audience’s attention. This means focusing on creating high-quality videos that grab user’s’ attention is crucial. Create videos for your target audience, which will help you effectively use Facebook’s targeting features in conjunction with the story you’re sharing.

Sep 2015 ‘15 Sep

Feb ‘16 2016

The Future of Facebook and Instagram Advertising

Europe/Middle East/Africa Facebook Trends #4 WEBSITE CLICK ADS ARE BECOMING MORE POPULAR. Why? Ads with a website clicks goal are increasing in CTR (by 116%), and advertisers are using a slightly larger portion of their budget for website clicks (3.5% increase over the last two years).

15. Facebook Website Clicks CTR 15) EMEA Facebook Website Clicks CTR

Just because website click ads are becoming more popular doesn’t mean you should overuse them. Try not to use website click campaigns to target users that meet your target criteria, and use them in your retargeting campaigns. This will help remind those users who have been to your website previously to keep coming back.

1.6% 160%

1.2% 120%

0.8% 80%

0.4% 40%

0% 0%

What marketers can do:

Jan 2015 2015 2015 2015‘15Jun 2015 Nov‘15 2015 Dec Dec ‘15 2015 Jan Jan ‘15 Feb Feb2015 ‘15 Mar Apr ‘15 AprMay ‘15MayJun Jul ‘15Jul 2015 Aug Aug ‘15 2015 SepSep ‘15 2015OctOct ‘152015Nov Jan 2016 ‘15 Feb Feb2016 ‘16

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The Future of Facebook Advertising

Europe/Middle East/Africa Fast Facts

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The Future of Facebook and Instagram Advertising

Europe/Middle East/Africa Fast Facts • Post Engagement ads increased in popularity by 70% from February 2015 to February 2016.

• Website Conversion ads decreased in total ad distribution from 43% of total ads to 19% in 2016.

• Video ads increased dramatically in total ad distribution, from 1% of total ads to 11% in 2016.

• 35% of all ads in Europe/Middle East/Africa are Post Engagement ads.

• From 2015 to 2016, advertisers shifted budget to Video ads and away from page like and post engagement ads.

• The amount of total budget spent on Video ads increased by 200%.

• Video View ads make up 28% of advertisers’ budgets.

• Website Click ads make up 30% of advertisers’ budgets.

• CPC for Video ads increased by 60%, from $.05 to $.08.

• Website Clicks CPC decreased by 39%.

• Video Views CTR decreased by 57% • Ads that take users away from Facebook – Website Conversion and Website Clicks – make up 40% of total ads.

• Except for Video Views and website clicks, CPC has remained mostly steady over the last 12 months on other ad types.

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The Future of Facebook Advertising

Asia Pacific Facebook Trends

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The Future of Facebook and Instagram Advertising

Asia Pacific Facebook Trends #1 FEWER ADVERTISERS ARE USING MOBILE APP INSTALL CAMPAIGNS, SUGGESTING A LESS CROWDED MARKET. Why? Advertisers are using Mobile App Install ads 66% less than they did in the previous year. We’ve also seen a 43% decrease in budget for Mobile App Install ads. Both of these trends suggest advertisers are simply using fewer mobile app ads despite the fact that CTR has actually increased by 34%.

16. Facebook Mobile 16) AppAPAC Installs share Mobile of ad format Facebook App Installs ad distribution

What marketers can do:

75% 75%

With less competition for mobile app install ads and increasing CTR, marketers who want to increase their mobile app installs should take advantage of the increase in CTR. Make sure to effectively target the persona you’re actively trying to reach.

60% 60%

45% 45%

30% 30%

15% 15%

0% 0%

Jan2014 ‘14 Jan

Jun2014 ‘14 Jun

Nov2014 ‘14 Nov

Apr 2015 ‘15 Apr

Sep 2015 ‘15 Sep

Feb ‘16 2016

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The Future of Facebook and Instagram Advertising

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Asia Pacific Facebook Trends

APACCTR Facebook Mobile App Installs CTR 17. Facebook Mobile App 17) Installs

18. Mobile App Installs share of ad spend

1.6% 160%

25% 25%

18) APAC Mobile App Installs spend

20% 20% 1.2% 120%

15% 15% 0.8% 80% 10% 10%

0.4% 40%

0% 0%

5% 5%

Jan 2015 2015 2015‘15Jun 2015 Nov‘15 2015 Dec Dec ‘15 2015 Jan Jan 2015 ‘15 Feb Feb2015 ‘15 Mar Apr ‘15 AprMay ‘15MayJun Jul ‘15Jul 2015 Aug Aug ‘15 2015 SepSep ‘15 2015OctOct ‘152015Nov Jan 2016 ‘15 Feb Feb2016 ‘16

Asia Pacific Facebook Mobile App Installs CTR increased by 35% from February 2015 to February 2016.

0% 0%

Jan‘15 2015 Feb Feb ‘15 2015 Mar 2015 2015 2015 Sep 2015 Oct 2015 Jan‘15 2016 Feb Feb‘16 2016 Jan Apr 2015 ‘15 Apr May ‘15 May Jun ‘15 Jun Jul ‘15 Jul 2015 Aug ‘15Aug 2015 Sep ‘15 Oct ‘15 NovNov ‘15 2015 DecDec ‘152015Jan

Brand Awareness Canvas App Engagement

Canvas App Installs Event Responses

Lead Generation

Mobile App Installs

Mobile App Engagement

Mobile App Installs decreased by 42% from February 2015 to February 2016.

The Future of Facebook and Instagram Advertising

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Asia Pacific Facebook Trends #2 VIDEO ADS BECOME MORE POPULAR IN ASIA PACIFIC Why? This year, advertisers increased their budget for video ads by 275%. This increase in budget may have spiked an increase in competition, because CTR started decreasing.

20. Facebook Video Views CTR 20) APAC Facebook Video Views CTR 7.5% 750%

Video Ad spend increased

on Facebook

by 275% from February 2015 to February 2016.

6.0% 600%

4.5% 450%

3.0% 300%

1.5% 150%

0%

Jan ‘15 Feb2015 ‘15 Mar Apr ‘15 AprMay ‘15MayJun Jul ‘15Jul 2015 Aug Aug ‘15 2015 SepSep ‘15 2015OctOct ‘152015Nov Jan 2016 ‘15 Feb Feb2016 ‘16 2015 Feb 2015 2015 2015‘15Jun 2015 Nov‘15 2015 Dec Dec ‘15 2015 Jan

What marketers can do: With competition increasing and CTR decreasing, marketers should hold back a bit on the quantity of video ads used. Repurpose former video ads into new types of content and try creating post engagement ads for them instead. When you do use video ads, make sure you’re only using high quality videos that successfully capture your audience’s attention from the get-go.

The Future of Facebook and Instagram Advertising

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Asia Pacific Facebook Trends #3 WEBSITE CLICK ADS ARE INCREASING IN POPULARITY. Why? Advertisers are increasing their use of Website Click Ads, and have increased total budget allowance by 29% since February 2016. The ads are also becoming more successful, with an increase in CTR of 1.01% since February 2016.

21. Facebook Website21) Clicks of adWebsite spend Clicks spend distribution APACshare Facebook

22. Facebook Website Clicks CTR 22) APAC Facebook Website Clicks CTR

30%

250% 2.5%

25%

2.0% 200%

20% 1.5% 150% 15% 1.0% 100% 10% 0.5% 50%

5%

0% 0%

Jan 2015 2015 2015‘15Jun 2015 Aug 2015 Nov Dec‘15 2015 Jan Jan ‘15 2016 Feb Jan 2015 ‘15 Feb Feb2015 ‘15 Mar Apr ‘15 AprMay ‘15May Jun Jul ‘15Jul 2015 Aug ‘15 SepSep ‘15 2015 OctOct ‘152015Nov ‘152015 Dec Feb 2016 ‘16

0%

Jan Feb2015 ‘15 Mar Apr2015 ‘15 AprMay ‘15 MayJun ‘15Jun 2015 Jul ‘15Jul 2015 Aug ‘15 SepSep ‘15 2015 OctOct ‘152015Nov ‘15 ‘15 Feb Feb2016 ‘16 Jan ‘15 2015 Feb 2015 2015 Aug 2015 Nov 2015 Dec Dec‘15 2015 Jan 2016

What marketers can do: Make use of website click ads to expand your audience and retarget users who have previously come to your website.

Play around with different CTAs and descriptions on your ads to find out which types of ads work best for your audience.

The Future of Facebook and Instagram Advertising

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Asia Pacific Facebook Trends #4 PAGE LIKE ADS ARE A LESS EFFECTIVE AD UNIT. Why? CTR has decreased by 13% and the cost to buy these ads has increased by 85%. This suggests that Page Like ads are becoming slightly less effective and more expensive, making them less valuable to marketers.

23. Facebook Page Likes CPC23) APAC Facebook Page Likes CPC

24. Asia Pacific Facebook Page 24)Likes APACCTR Facebook Page Likes CTR

$2.0 20%

400% 4.0%

$1.6 16% 3.0% 300%

$1.2 12% 2.0% 200% $0.8 8%

1.0% 100%

4% $0.4

0% $0

Jan 2015 2015 2015‘15Jun 2015 Aug 2015 Nov Dec‘15 2015 Jan Jan ‘15 2016 Feb Jan 2015 ‘15 Feb Feb2015 ‘15 Mar Apr ‘15 AprMay ‘15MayJun Jul ‘15Jul 2015 Aug ‘15 Sep Sep ‘15 2015 OctOct ‘152015Nov ‘152015Dec Feb 2016 ‘16

0%

Jan 2015 2015‘15May Jun 2015‘15Jun 2015 Jul 2015 Oct Nov‘15 2015 Dec ‘15 2015 Jan 2016 Jan 2015 ‘15 Feb Feb2015 ‘15 Mar Apr ‘15 AprMay Jul ‘15 Aug Aug ‘15 2015 SepSep ‘152015Oct ‘152015 Nov Jan2016 ‘15 Feb Feb ‘16

What marketers can do: What marketers can do: Don’t rely too heavily on ads to increase your audience. Focus on generating organic Page Likes by making use of more successful ads like post engagement and website clickthrough ads instead.

The Future of Facebook Advertising

Asia Pacific Fast Facts

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The Future of Facebook and Instagram Advertising

Asia Pacific Fast Facts • Website Conversions ads increased in CPC by 73%.

• CTR for Post Engagement ads increased by 50%.

• Budget allocation for Video View ads increased by 275%.

• Budget allocation for Mobile App installs decreased by 43%.

• Budget allocation for Page Like ads decreased by 45%.

• Post Engagement ads made up 24% of all ad campaigns.

• Mobile App Installs made up 20% of all ad campaigns.

• We will see an increase in Video Views over the next year as people start using the budget they are increasingly allocating.

• Website Conversions made up 23% of all ad campaigns.

• Website Clicks made up 10% of all ad campaigns.

• Budget allocation for Website Conversions increased by 20%.

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The Future of Facebook Advertising

Latin America Facebook Trends

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The Future of Facebook and Instagram Advertising

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Latin America Facebook Trends #1 PAGE LIKE ADS HAVE BECOME LESS POPULAR. Why? Page Like ads make up less of the overall ad distribution (60% decrease year-on-year), and marketers have spent 44% less on them. This decrease in popularity for Page Like ads may mean there’s a decrease in overall competition for these ads.

25. Facebook Page Likes share of adFacebook format Page Likes distribution 25) LATAM

26. Facebook Page Likes of Facebook ad budgetPage Likes spend of budget 26)share LATAM

30% 30%

16%

12% 20% 20%

8%

10% 10% 4%

0% 0%

Jan 2015 2015‘15Jun 2015 Aug 2015 Nov Dec‘15 2015 Jan Jan ‘15 2016 Feb Jan 2015 ‘15 Feb Feb2015 ‘15 Mar Apr2015 ‘15 AprMay ‘15MayJun Jul ‘15Jul 2015 Aug ‘15 Sep Sep ‘15 2015 OctOct ‘15 2015Nov ‘152015Dec Feb 2016 ‘16

0%

Jan‘15 2015 Feb ‘15 2015 Mar 2015 2015 2015 Aug 2015 Sep 2015 Oct 2015 Dec Jan‘15 2016 Feb Feb‘16 2016 Jan Apr 2015 ‘15 Apr May ‘15 May Jun ‘15 Jun Jul ‘15 Jul 2015 Aug ‘15 Sep ‘15 Oct ‘15 NovNov ‘15 2015 Dec ‘152015Jan

What marketers can do: Since the market isn’t saturated with Page Like ads, now might be a good time to expand your budget for these ads if one of your goals is to increase your Fan base. Make sure to effectively use Facebook’s targeting features to only advertise to those users who are the best fit for your product. Use recognizable branded images and slogans for recognizability.

The Future of Facebook and Instagram Advertising

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Latin America Facebook Trends #2 VIDEO ADS ARE BECOMING MORE POPULAR. Why? There’s been a 250% increase in video ad campaigns year-on-year and video ad distribution has increased from just 1% of all Facebook ads to 8% over the last 14 months. At the same time, CTR has decreased slightly, which is consistent with more advertisers using the ad unit.

27. Facebook Video Views ad format 27) share LATAMofFacebook Video Views ad distribution

28. Facebook Video Views CTR 28) LATAM Facebook Video Views CTR

10% 10%

3.0% 300%

2.5% 250%

8%

2.0% 200% 6% 1.5% 150% 4% 1.0% 100%

2%

0%

0.5% 50%

0% Jan 2015 2015‘15May Jun 2015‘15Jun 2015 Aug 2015 Nov Dec‘15 2015 Jan ‘15 2016 Feb Jan2015 ‘15 Feb Feb2015 ‘15 Mar Apr ‘15 AprMay Jul ‘15Jul 2015 Aug ‘15 SepSep ‘15 2015 OctOct ‘152015Nov ‘152015 Dec Feb2016 ‘16

Jan 2015 2015‘15May Jun 2015‘15Jun 2015 Jul 2015 Oct Nov‘15 2015 Dec Dec ‘15 2015 Jan 2016 Jan 2015 ‘15 Feb Feb2015 ‘15 Mar Apr ‘15 AprMay Jul ‘15 Aug Aug ‘15 2015 SepSep ‘152015Oct ‘152015 Nov Jan2016 ‘15 Feb Feb ‘16

What marketers can do: Save your best videos with the best messages for your video ads, and focus on making them stand out from the crowd. As video ads become more popular, your audience’s News Feeds can become overcrowded with them. Don’t forget to use high quality video practices to capture your audience’s attention.

The Future of Facebook Advertising

Latin America Fast Facts

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The Future of Facebook and Instagram Advertising

Latin America Fast Facts • Advertisers increased their budget for Video Views by 36% • Advertisers increased their budget for Website Clicks by 33% • Advertisers decreased their budget for Post Engagement ads by 23% • Post Engagement ads increased by 37% in total ad distribution.

• Page Like ads decreased by 56% in total ad distribution.

• Video Views increased by 250% in total ad distribution.

• The top 3 ad formats people are using the most are Post Engagement ads (49% of ad distribution), Website Clicks (14% of ad distribution), and Website Conversions (12% of ad distribution).

• The top 3 ad formats people are spending the most on are Post Engagement ads (28% of budget), Video Views (27% of budget), and Website Clicks (21% of budget).

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The Future of Facebook and Instagram Advertising

CONCLUSION

Each region has different preferences and standards for Facebook advertising. What works for advertisers in Latin America isn’t necessarily going to work for advertisers in Asia Pacific.

As a marketer, your job is to take these trends and use them to tailor your Facebook ad campaign strategy accordingly.

If the trends are saying that there’s an increase in competition, think about and research ways to stand out from the crowd. If one ad is decreasing in popularity, think about ways to use those ads in unique ways (like retargeting campaigns or using social credibility options to boost your ads).

Overall, one trend is clear: with over 1.59 billion Facebook users worldwide, coupled with a wealth of targeting and creative options, Facebook ads are an incredibly valuable tool that you can use to expand and engage with your audiences. Use this data analysis to help you improve you ad strategy no matter who your audience is worldwide.

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