Jun 29, 2016
By Zachary Reiss-Davis
Social Media Marketing, Industry Reports

Salesforce just published a recap of major trends in advertising across Facebook, Instagram, Twitter, and LinkedIn for Q1 2016. Check out these highlights of our key findings.


Historically, media costs tend to be lower in Q1 than in Q4 due to seasonal shopping habits, but this year's global trend was different, with 14% quarter over quarter growth. Facebook media costs continue to rise year over year, with global Facebook CPM growing 71% to $5.75. The CTR also rose 20% to 1.00% overall.

This shows that there is a strong demand by advertisers for the Facebook newsfeed, and that customers still find them highly engaging relative to other digital advertising.



Digging into specific country trends, Canada experienced the highest growth in Facebook media cost at 189%, followed by Germany and the United States, with both growing 86% year over year. The United States had the highest CPM at $7.02, while Germany had the highest CTR at 1.57%. France and Australia had the slowest growth rates for CPM year over year at 19% and 37%, respectively.

The market for Facebook mobile app install ads continues to mature, as the cost per mobile app install in Germany, France, and Spain decreased while it increased in Australia, the United Kingdom, and the United States. For ads with a clear ROI metric--like mobile app installs--it's critical for advertisers to drill down into how their particular market performs.


Advertisers across the globe are adopting Instagram to reach and engage their audiences. In February 2016, Instagram announced a milestone of 200,000 advertisers on the platform, and the adoption of those 200,000 advertisers is being driven by continual growth in monthly active users (MAUs). This month, Instagram announced it now has 500 million MAUs, up from 400 million in September or 200 million as recently as March 2014. The global Instagram CPM and CTR for Q1 2016 were $4.44 and 0.11% respectively. Japan had the highest Instagram CTR at 0.17%.




This quarter, Twitter remains a mobile-first company, as it announced that 86% of its advertising revenues came from mobile. The global CPM for Twitter fell 4.9% year over year, but the cost per engagement rose 216%.


According to LinkedIn's Q1 2016 earnings reports in April, global user adoption surpassed 433 million users and revenue from Marketing Solutions increased 29% year over year to $154 million. LinkedIn continues to be a premium platform for advertisers, with a global CPM of $29.37 for Q1 2016. In the investor deck for the Microsoft acquisition this month, "targeted advertising" was one of the primary elements of the "opportunity ahead" specifically called out and "ad revenue" was listed as part of the intelligent newsfeed and digital assistant use cases.

For more overall benchmarks and detailed industry trends, including the performance of the retail industry, for Australia, Germany, the United Kingdom, and the United States, check out our full report.

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