Facebook Profits From Rise In Video Ads

Boosting its bottom line, Facebook’s video fortunes continue to rise. In June, video ads captured their highest share of Facebook ad spend ever (22%) observed by Nanigans, according to new findings from the Facebook-focused ad company.

Video continues to attract greater portions of Facebook ad spend, with video enabled units accounting for 16% of total spend in the second quarter 2015 -- up nearly a fourth from 13% in the first quarter of the year.

Representing another source of ongoing growth, mobile video has been particularly attractive to advertisers on Facebook, with 21% of total global mobile ad spending going toward the format in the second quarter – up from 15% in the first quarter. This growth was even more pronounced among gaming advertisers, with mobile video capturing a 36% share of mobile spend in the second quarter -- up significantly from 19% in the first quarter.

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For the fifth-straight quarter, Facebook ad CTRs hit a new high (of .88%) in the second quarter of the year. Advertiser costs on a per-click basis dropped slightly -- from $0.53 in the first quarter to $0.46 in the second quarter. This represented the lowest global Facebook CPC observed since the fourth quarter of 2013.

Nanigans suggested that this decline may be due, in part, to non-U.S. Facebook advertising, which is often less expensive than U.S. inventory and constituted a larger share of advertising activity among Nanigans customers in the second quarter.

Still, with CTR continuing to trend upward and CPA costs coming down, the trend underscores how advertisers on Facebook are seeing strong ROI from the channel as it grows globally, according to the ad company.

The report is representative of Facebook ad impressions delivered by customers leveraging Nanigans ad automation software. It includes ad spend on both Facebook desktop and Facebook mobile and excludes Facebook Exchange.

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