Salesforce just published a recap of major trends in advertising across Facebook, Instagram, Twitter, and LinkedIn for Q2 2016. Check out these key findings from the report.
Facebook continues to deliver value to advertisers everywhere, and its latest earnings report proves it. Facebook ad revenue reached $6.2 million, representing a 63% increase since Q2 2015. Facebook CPM rose 65% year over year globally to $6.33, with a global CTR of 1.29%.
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.
Canada and France experienced the highest growth in CPM on Facebook, with over 130% growth since last year, followed by the United States which grew 74% year over year. Australia had the highest CTR at 2.02%, followed by Germany at 1.67%. The United Kingdom and Germany had increases in CPM year over year at 44% and 46%, respectively.
The Facebook mobile app install market for ads continues to mature, and across eight leading markets the cost per mobile app install was $4.01. Facebook continues to be a mobile-first platform; last quarter it earned 84% of its revenue from mobile ads. In the United States, the average adult (not Facebook user, adult!) spends 16 minutes per day on Facebook mobile, in addition to six minutes on Facebook desktop (eMarketer).
More than 200,000 advertisers across the globe have adopted Instagram to reach and engage their audiences. The platform has continued its strong growth, with 500 million monthly active users (Facebook), and is currently the seventh most used app in the United States on the Google Play store -- Facebook has four of the top eight spots, and Google has the other four (SimilarWeb). Yet it’s not just a United States phenomenon -- it’s ranked eighth in the U.K., sixth in Australia, and eighth in Brazil. In addition, Instagram just announced that 80% of its users are outside the United States. The global CPM on Instagram in Q2 2016 was $6.30, rising 42% quarter over quarter. The United Kingdom increased by 6.4%, a much lower growth rate than Australia and the United States.
This quarter Twitter announced that 40% of its quarterly revenue was from international markets.Twitter remains a mobile-first company, announcing 89% of its advertising revenues came from mobile, up from 86% the previous quarter, and 82% of its monthly active users were mobile (TechCrunch). In Q2 2016, the global Twitter CPM fell 18% year over year to $4.29. From Q1 2016 to Q2 2016, CPM fell 38% from $6.93. Last year, the third-quarter CPM was lower than in Q2.
The LinkedIn Q2 2016 earnings report shows that revenue from its Marketing Solutions increased 29% year over year to $181 million, with over 60% of that revenue from Sponsored Content. The demand for ad inventory on LinkedIn has grown as have media costs for sponsored content. LinkedIn continues to be a premium platform for advertisers — especially in B2B and financial services — as its CPM rose 13% year over year, reaching $29.43.
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 the full Q2 2016 Advertising Index Report.