"The growing popularity of social commerce, the changing role of Instagram and Facebook, influencer marketing and the explosion of video content are just some of the developments that online marketers will have to analyze and integrate into their strategies in the coming year," explains Socialbakers CEO Yuval Ben-Itzhak.
The most important findings
- Ad spend on Instagram Stories increased by 70% year-on-year, while ad spend on Facebook Stories only increased by 0.3%; Instagram Stories now account for 10% of total social media ad spend in Q3.
- The e-commerce category continues to grow, taking first place on Facebook and second place on Instagram in terms of total interactions. The fashion industry dominates Instagram, extending its lead in engagement from 27.8% in the second quarter to 31.9% in the third quarter of 2019.
- Social commerce is becoming an important trend: brands are enabling their customers to buy products directly via social media platforms.
- Sporting goods, beauty and e-commerce brands have the lowest exit rates on Instagram Stories. Brands from the food, beverage and financial sectors, on the other hand, struggle to keep the attention of their audience.
- Advertising mentions using the hashtag #ad by Instagram influencers increased by 60%. Of the companies analyzed, Walmart is the leading brand in influencer marketing (1370 mentions from 856 influencers).
- Video engagement has exploded across all platforms, driven by new formats such as Facebook Live, IGTV and interactive add-ons for Instagram stories.
- Mobile First: Marketers need to prioritize mobile advertising, as paid ads are now seen 95.8 percent of the time on mobile devices, compared to just 4.2 percent on desktop PCs.
Outstanding engagement on Instagram attracts advertising spend
Although brands still spend the majority of their ad spend on the Facebook feed (more than 60%), the data shows a long-term decline in the volume of ad spend on Facebook. With a tenfold increase in ad spend on Instagram Stories from January 2018 to the end of the third quarter of 2019, it is clear that marketing budgets are increasingly being allocated to Instagram. The reason for this is obvious: Instagram has a significantly higher engagement rate than Facebook.
When comparing the 50 largest brand profiles in the world on Instagram and Facebook, Instagram continues to have more interactions on profile posts than Facebook. While advertising expenditure for Facebook is declining, advertising expenditure for the Instagram feed has risen and has accounted for at least 20 percent of total advertising expenditure since the first quarter of 2019.
Social commerce picks up speed
"Of all the trends this year, we believe that social commerce will have the biggest impact in 2020. It will soon be possible to cover the entire marketing funnel from product discovery to product purchase and subsequent customer support via social media," explains Yuval Ben-Itzhak. "In 2020, we will see social media platforms integrating more and more e-commerce functions directly into their platform."
Video content is becoming increasingly popular
With Facebook Live, IGTV and add-ons for IG Stories, Facebook and Instagram have created interactive video formats. Measured by the average post interaction, Facebook Live is now the most attractive post format on Facebook with more than twice as many interactions as image posts, while regular Facebook videos follow in third place.
Video content on Instagram almost caught up with image posts in terms of average post interaction in the third quarter. The growing popularity of video is a trend that marketers should consider this holiday season and in the coming year
"Mobile First" is a must
Looking at all brand advertising accounts across Facebook and Instagram, the cost per click (CPCs) on desktop ($0.25) is almost twice as high as on mobile ($0.13). In addition, paid ads are seen 95.8 percent of the time on mobile devices, compared to just 4.2 percent on desktop. This is a slightly greater imbalance than in the second quarter of 2019 and underlines the fact that the "mobile first" premise is fundamental for marketers.