Facebook advertising is one of the most popular forms of advertising today for many reasons, including the variety of ad format, large, diversified audience base, and potential engagement. Facebook reaches 1.23 billion people daily and 1.15 billion people daily through mobile. In a day, an average user will spend about 35 minutes on Facebook and 15 minutes on Instagram, Facebook’s trendy companion.
Facebook represents a huge opportunity for advertisers, we compiled the 10 biggest Facebook advertising statistics to guide brands through the array of options.
Facebook’s vast audience has attracted over 5 million advertisers to the platform, the most recent 1 million added in the past 7 months. Approximately 75% of the 5 million advertisers are located outside of the US. By industry, the biggest advertisers on Facebook are e-commerce, entertainment, media, and retail. While Facebook offers a plethora of paid options on a budget friendly scale, brands do not necessarily have to use Facebook’s ad to market on the platform. It is free for businesses to create a page of their own. The widely used practice has accounted to over 65 million businesses with Pages.
Facebook’s ad revenue at the end of 2016 towered at a colossal $8.62 billion, up 53% from $5.64 billion in ad revenue at the end of 2015. This represented nearly 98% of Facebook’s total revenue in Quarter 4. Nearly all of Facebook’s revenue is coming from advertisers meaning that Facebook’s platform and products are designed for marketing and for reaching both vast and nuanced audiences. Facebook’s $8.62 billion success in advertising also indicates that first, marketers are flocking to the platform for coverage, and second, those implemented campaigns are effective.
Of Facebook’s $8.62 billion in total ad revenue $7.24 billion, or 84%, is generated from mobile. Nearly 50% of advertisers are creating ads on mobile devices, reflecting the overarching mobile trend set by the wide availability of smartphones. Mobile devices and apps are dominating in share of total digital time, and representing the official trend for digital advertising. Just last year, the number of people in the U.S. accessing the internet through a mobile device surpassed the number of people in the U.S. using the internet through a desktop.
Related Post: The Top 10 Mobile Advertising Statistics For 2017
Growth in Facebook advertising has come with a price to advertisers. As Facebook is becoming increasingly popular, it is also becoming increasingly more expensive. In fact, the average price for a Facebook ad has been increasing 9% year-over-year. Currently, ads for Facebook in the U.S. and in Canada as the most expensive, at $14.34 per user. Second is Europe, at $4.72 per user. Next is the Asia-Pacific at $1.77 per user, and $1.13 per user for the rest of the world. Interesting, over 85.2% of Facebook’s daily active users are outside of the US and Canada, and global brands would do well to leverage this opportunity.
Call-to-action phrases are known to be effective in digital marketing tactics, however, integrating Facebook’s CTA button will lead to a nearly tripled click-through rate (CTR). Of Facebook’s CTA buttons, 74% are “Shop Now” buttons. The second most preferred by advertisers is the “Learn More” button, with a 10% prevalence. However, Facebook found that the top CTR performer was the “Learn More” button. Advertisers should be sure to take this into account in their next Facebook ad campaign, especially since all buttons are priced the same.
Facebook’s Carousel ads are doing 10 times better in CTR than static advertisements. Carousel ads, or ads that permit brands to display multiple pieces of media in a rotating carousel, have been driving 10x more traffic to advertisers’ websites. Even more, Facebook reports that the Carousels yield a 30-50% lower cost-per-conversion and 20-30% lower cost-per-click than single-image link ads. In particular, the interactive and attention-grabbing feature has been helpful for direct response and brand awareness marketing.
Online video advertising is growing and Facebook has been increasing their advertising options in Video and Live. A study by Nielsen and Facebook found that video ads lifted ad recall, brand awareness, and purchase intent from the first second the ad was viewed. Facebook determined the impact of each the metrics for varying lengths of each video. The data showed that a video watched for 3 seconds created 47% of total campaign value in ad recall, 32% of total campaign value in brand awareness, and 44% of total campaign value in purchase intent. 10 seconds into a video would yield a 74%, 65% and 72% total campaign value for ad recall, total brand awareness, and purchase intent, respectively.
Related Post: The Top 13 Facebook Video Statistics You Need To Know
Audience Network on Facebook allows advertisers to extend their campaigns beyond Facebook’s platform and into other mobile apps. Audience Network is particularly effective for advertisers that are looking to drive app install and app engagement. Since 2014, Audience Network has grown so that over 1 billion people will see and ad through the feature. Advertisers extending their campaigns to Audience Network will see a 12% increase in conversion on website campaigns and 17% increase in installs for mobile app campaigns. Furthermore, Audience Network is yielding high view-through rates for advertisers, with over 2/3 of video impressions resulting video views that last 10 seconds or more.
With Facebook doing so well with advertisers, it’s often easy to forget a gigantic social app that it purchased, Instagram. Instagram is one of the fastest growing social media platforms available today, with more than 1 million active advertisers and 8 million business profiles. Instagram. The trendy photo and video sharing mobile app has been popular with advertisers looking to tap into younger generations and demographics. While ad earnings for Instagram have not been shared, a 90% spike in Instagram ad prices after opening its advertising API suggests that native advertising on the platform is fierce and plentiful.
Native advertising on Facebook and Instagram are well reported, however, a newer form of social media marketing emerging as influencer marketing, is taking up a lot of space on Instagram in particular. Brands are partnering with content creators on Instagram through sponsored posts, and this marketed is to be $1 billion total or more in 2017. In two years, that number is expected to more than double to nearly $2.4 billion.