Facebook advertisers upped their video advertising budgets by 24% during the third quarter of the year compared to 2018, according to new data from advertising platform Nanigans.
The rise marks the third quarter in a row during which video ad spending doubled on image advertising expenditure.
Meanwhile, cost-per-click rates for video ads jumped 31% during the same period, driven by higher demand. Based on Nanigan client data and transactions, the results show that advertisers are willing to pay more for these ad types.
CPMs for video ads decreased by 5% year-on-year but were up during Q3 (4%) compared to Q2 2019.
Overall, click-through rates for video ads declined 28% compared to Q3 2018, but given that advertisers were willing to spend more, it’s likely they still noticed a good return from video ads.
Dynamic ad expenditure rose by 98% year-on-year, demonstrating the effectiveness of the ad type on Facebook and Instagram. During the third quarter of 2019, dynamic ads provided better click-through rates (2.4%) than non-dynamic ads (0.96%).
Facebook CTR and CPM suffered more strongly in the EMEA region, whilst both the US and APAC both saw increases. For example, CPC in the APAC region rose 66% quarter-on-quarter whilst CPM jumped 41%.
The rise in video ad spending across Facebook demonstrates a growing commitment by marketers to engage social network users more successfully. Dynamic and video ad formats appear to perform particularly well to that end.