Still think Facebook video isn’t taking off We’ve reported in the past on how it’s becoming quite the competition to YouTube, and how partners have jumped on board to take advantage of its format. Now Video ads are speaking volumes.
A new report from DigiDay shows that Facebook’s video ad initiative is taking off, with 22 percent of total ad spending for the past month of June going towards video ads. That’s the highest share ever for the format, according to ad-tech firm Nanigans. And it’s slowly on the rise, as the firm also reports that, between the first and second quarter of 2015, video ad spend has increased from 13 to 16 percent. A small increase, sure, but an increase nevertheless.
On top of that, mobile has played a big part in this success, with a 21 percent boost for the second quarter alone, up from 15 percent the quarter before. This is mainly through gaming advertisers who doubled its total ad spend over the quarters, pushing up to 36 percent, up from 19 percent in Q1.
This also adds more depth to the idea that Facebook can compete with YouTube, with four billion video streams a day.
As you can see from the chart, video share on ad spending for both global and mobile has seen quite a boost — and judging by popularity, it’s bound to continue.
Nanigans also reported that click-through rates have reached new heights for the second quarter, going up 0.9 percent. That may seem small, but that’s a 187 percent increase from Q2 2014. Meanwhile, costs per click have dropped $.46 for the second quarter.
“This may be in part due to non-U.S. Facebook advertising, which is often less expensive than U.S. inventory and constituted a larger share of advertising activity among Nanigans customers in second quarter 2015 as opposed to the previous quarter,” said the firm.
It appears that Facebook’s video business will continue rolling onward, and the advertisers will roll right along with it.
