Advertising spending on Instagram Stories jumped nearly 70% over the last 12 months, and now accounts for 10% of overall brand spend of parent Facebook.
In comparison, Facebook Stories only account for 0.3% of ad spend. That’s according to a new report from Socialbakers which examined Instagram and Facebook ad trends during Q3 2019.
According to Yuval Ben-Itzhak, CEO, Socialbakers, the latest trends reveal that marketers are shifting their resources to social media channels to engage users more effectively.
“The rise of social commerce, the changing roles of Instagram and Facebook, influencer marketing, and the exploding popularity of video are just a few of the developments that online marketers will need to analyse and incorporate into their strategies in the coming year,” he said.
The majority of ad spend (60%) is still going toward the Facebook feed, but given the 10x jump in ad spend on Instagram Stories between 2018 and 2019, it’s likely that marketing budgets are going to shift further.
“The reason is obvious – Instagram has a much superior engagement rate compared to Facebook today,” explains Ben-Itzhak.
eCommerce ads are attracting the majority of spending, ranking top on Facebook and second on Instagram for interactions. On the popular photo app, fashion ranked top with engagement increasing from 27.8% in Q2 to 31.8% in Q3.
“With its leading position for total interactions on both Facebook and Instagram, the eCommerce category is hot,” highlights Ben-Itzhak. “And one of the biggest trends within Ecommerce is the expansion of social commerce. More and more, users are able to make purchases directly from social media platforms after they discover a product, instead of having to visit a shopping site’s app or an online store. There’s plenty of reason to believe that the growing social commerce trend will only continue.”
Exit rates were lowest for sports goods, beauty and eCommerce and highest for food, beverages and finance products on Instagram.
More influencers are now also using the #ad hashtag (up 60%).
Paid ads are seen on mobile devices 95.8% of the time, compared to 4.2% on desktops.
“Of all the trends we uncovered this quarter, the rapid expansion of social commerce is one that we expect to have a tremendous impact in the year to come. Very soon it will be possible to run the entire marketing funnel from discovery to post-purchase customer care via social media,” Ben-Itzhak said. “We don’t need a crystal ball to predict that social commerce will eventually overtake Ecommerce as we know it today. Moving into 2020, we will see more and more Ecommerce features being added to the social media platforms.”