Instagram represents 20% of total ad expenditure on Facebook

Anne Freier

In Mobile Advertising. July 23, 2018

In the wake of recent data scandals, Facebook advertisers appear to have shifted their ad budgets slightly towards Instagram – the photo app owned by Facebook.

According to new insights from Marin Software, Instagram captured 20% of total Facebook ad budgets across the online advertising company.

Although Facebook is not particularly popular with teenagers, Instagram ranks second just behind YouTube. The app is now valued at $100 billion and is suggested to be driving significant growth for Facebook’s ad revenue.

In addition, Instagram has already been touted as one of the leading product discovery platforms and continues to bolster its eCommerce advertising products. Meanwhile, parent Facebook has been expanding the app’s video advertising capabilities and tech stack to bolster improved advertising opportunities and tools for marketers.

At the same time, rival Snapchat continues to struggle to attract users. However, the company has been bolstering its ad offers by rolling out a self-serve ad platform and integrating with third-party measurement providers such as Nielsen recently.

Overall, social CTR growth was down a little at 1.67% compared to 1.8% year-on-year growth in Q1. The decline may be attributable to Facebook’s data scandals.

In addition to social, the Marin Software data revealed that global search spend grew 13% driven by click volumes and higher CPCs. Mobile’s share of search ads was 40% during Q2 of 2018. It was highest in EU countries at 46.4% and lowest in the US at 38.4%.

Meanwhile, shopping ads came to 32% of retail Google Ad spend, continuing a flat trend. Marin clients who have been using Amazon are now allocating 24% of their total digital expenditure to the platform. Sponsored Product Ads represented 79% of that spend whilst Headline Shopping ads were responsible for the remaining 21%.