Nanigans - European Facebook Advertising Benchmark Report

EUROPEAN FACEBOOK ADVERTISING
BENCHMARK REPORT
Digital ad spending in Europe grew to €36.2 billion

last year, and the opportunity for advertisers on
Facebook has never been greater.
With 338 million monthly active users in Europe, Facebook has become a primary digital
advertising channel for commerce companies driving profitable growth among increasingly
mobile consumers.
The opportunity is huge for European and global advertisers alike, but strategic
campaign segmentation is critical for high-ROI Facebook advertising in the region. Europe
encompasses such a wide range of languages, cultures, and marketplace variations, which
create a significant challenge for advertisers trying to most effectively reach new and
existing customers across borders.
To give marketers in Europe and beyond critical insights for profit-driven advertising
on Facebook, this report dives into performance benchmarks and best practices from
countries across the continent. Data for each country is backed by expert insights from
Nanigans’ in-market team, which offers localized strategic support to in-house advertisers
throughout Europe.
WHAT’S IN THE REPORT

This study analyzes tens of millions of dollars in
 Country benchmark data on Facebook ad Europe-targeted Facebook ad spend from Nanigans
engagement, costs, and mobile vs. desktop trends advertisers during the period of February through
July 2016. This report aggregates Facebook
 Comparative regional purchase rate benchmarks advertising performance data from ads targeted to
users in Belgium, Denmark, France, Germany, Italy,
 Targeted best practices for maximizing Facebook Netherlands, Spain, Sweden, Switzerland, and the
advertising ROI United Kingdom.
Nanigans | Advertising Automation 1

European Facebook Advertising Benchmark Report
Belgium
KEY BENCHMARKS
0.4% $0.78 $2.75

click-through rate (CTR) cost per click (CPC) cost per mille (CPM)
Mobile vs. desktop ad spend
46% mobile 54% desktop
EUROPEAN INDEX
100%
50% 75% 45%

80% 58% 46%
60%
40%
20%
0%
m
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Fr
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CTR CPC CPM Mobile Share of Ad Spend Purchase Rate
All Metrics Are Indexed
EXPERT INSIGHTS
Advertisers often target Belgium as part of a regional Marketers using Nanigans can quickly rebuild existing
strategy across the Low Countries, but language ads to swap out translated copy and creative elements
segmentation is critical for relevant messaging. in just a few clicks, resulting in more tailored and more
Translation is especially important in Belgium, where effective ads for Belgian audiences.
Flemish dominates in the north, French in the south,
and German in the east.
Nanigans | Profit-Driven Advertising Automation 2

Denmark
KEY BENCHMARKS
0.5% $0.96 $4.62

EUROPEAN INDEX
100%
69% 92% 76%

80% 83% 96%
60%
40%
20%
0%
m
ly
en
nd
m
an
nd
ar
nc
ai
Ita
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do
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la
Sp
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lg
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ng
Fr
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Be
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EXPERT INSIGHTS
Denmark shares many characteristics with its Nordic When targeting customers in Denmark, consider using
neighbors, including higher average Facebook Nanigans’ audience override tables to set highly
advertising costs, and a tendency for shoppers segmented cost or return on ad spend goals based
to spend more when buying online. Profit-driven on granular criteria. Bids will dynamically adjust to
advertisers understand the downstream value of maximize returns and optimize budget allocation.
investing more to acquire these high-value customers.

France
KEY BENCHMARKS
0.4% $0.69 $2.49

EUROPEAN INDEX
100%
80%
51% 67% 41%
89% 84%
60%
40%
20%
0%
m
ly
en
nd
m
an
nd
ar
nc
ai
Ita
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do
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Sp
nm
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Fr
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EXPERT INSIGHTS
France may have lower average CTRs compared to testing images, videos, and ad copy optimized toward
other countries across Europe, but the purchase downstream actions like purchases—not just CTR—
rate on Facebook ads is high, indexing at 84%. To advertisers can reduce wasted ad spend and only
compel clicks that lead to higher revenues, the promote the creatives that deliver the highest ROI.
most effective advertisers using Nanigans in France
employ automated creative testing. By intelligently

Germany
KEY BENCHMARKS
0.5% $0.81 $3.95

EUROPEAN INDEX
100%
80%
69% 78% 65%
83% 100%
60%
40%
20%
0%
m
ly
en
nd
m
an
nd
ar
nc
ai
Ita
iu
do
ed
la
Sp
nm
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a
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lg
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ng
Fr
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Be
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EXPERT INSIGHTS
Facebook users in Germany exhibited the highest If advertisers can compel customers to click an ad,
click-to-purchase rates of any country in this report. they are particularly well positioned to convert those
However, average CTRs fell generally in the middle clicks into revenue. In this market, tools like Nanigans’
of the pack, so marketers must still be strategic automated creative testing can be highly effective in
and relevant in their targeting to drive clicks and quickly identifying top-performing ads and scaling only
subsequent purchases. those that deliver higher downstream returns.

Italy
KEY BENCHMARKS
0.6% $0.37 $2.07

EUROPEAN INDEX
100%
80%
79% 36% 34%
95% 47%
60%
40%
20%
0%
m
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nd
m
an
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nc
ai
Ita
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Fr
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EXPERT INSIGHTS
Facebook advertisers targeting Italian users benefit Costs may be lower, but remember that competition
from lower costs, with some of the least expensive to reach the Italian users who are most likely to make
CPMs and CPCs observed. These benchmarks can a purchase, download an app, or otherwise monetize
make the country—along with Spain and Ireland— is still high. Be prepared to increase bids to win those
an effective test market for soft campaign launches impressions over competitors to make the most
before expanding more broadly. efficient use of ad budgets.

The Netherlands
KEY BENCHMARKS
0.7% $0.55 $3.75

EUROPEAN INDEX
100%
80%
97% 53% 62%

60% 78% 22%
40%
20%
0%
m
ly
en
nd
m
an
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nc
ai
Ita
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do
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Sp
nm
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Fr
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EXPERT INSIGHTS
The Dutch tend to click Facebook ads more than any High CTRs and low purchase rates underscores the
other country in this study, other than Sweden. While importance of optimizing campaigns beyond the
engagement is strong, these clicks do not always click. Consider using Nanigans’ predictive revenue
translate into purchases, app downloads, or other optimization to intelligently adjust bids and budgets
revenue generating events. In fact, click-to-purchase based on real, downstream value—not just upper-
rates in the Netherlands were the lowest observed. funnel engagement metrics.

Spain
KEY BENCHMARKS
0.6% $0.32 $1.82

EUROPEAN INDEX
100%
80%
60% 82% 30% 30%
88% 79%
40%
20%
0%
m
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en
nd
m
an
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nc
ai
Ita
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do
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la
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Fr
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EXPERT INSIGHTS
With higher CTRs and purchase rates, and the lowest A highly customizable reporting suite is key for
CPMs and CPCs in this report, Spain is a unique target accurately analyzing segmented campaigns. Try using
for European advertisers. The country can also be Nanigans to build a shareable reporting view that
a challenging market due to its demographic and splits Spanish campaigns by region, objective, and
economic diversity, necessitating careful segmentation demographics to quickly identify which audiences are
based on regional culture and language. powering the best performance.

Sweden
KEY BENCHMARKS
0.7% $0.83 $5.86

EUROPEAN INDEX
100%
80% 100% 80% 96%
93% 48%
60%
40%
20%
0%
m
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nd
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ai
Ita
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Fr
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EXPERT INSIGHTS
Historically, Sweden and other Nordic countries With costs and CTRs skewing high, advertisers must
benchmark high for average order value from minimize the risk of overspending on metrics outside
Facebook ads, making Swedish audiences among the of revenue-generating performance indicators.
most expensive to reach. CTRs in the country were Use Nanigans’ automated stop loss protection to
the highest in this study, yet purchase rates trended dynamically pause any ad that isn’t delivering optimal
comparatively lower. performance to eliminate the chance of inefficient ads.

Switzerland
KEY BENCHMARKS
0.6% $0.96 $6.09

EUROPEAN INDEX
100%
80%
90% 92% 100%

60%
87% 99%
40%
20%
0%
m
ce
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en
nd
m
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ai
Ita
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Fr
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EXPERT INSIGHTS
The Swiss speak a number of different languages languages in ad creative. Marketers using Nanigans
based on distinct regions of the country. French is can leverage build restrictions to automatically
more prominent in the west, Italian in the south, and ensure, for example, that German ad copy isn’t
German in the central and northern regions. Building unintentionally paired with an image featuring a call-to-
many combinations of ads for such a segmented action in Italian.
market can introduce the possibility of mismatched

The United Kingdom
KEY BENCHMARKS
0.5% $1.04 $5.46

EUROPEAN INDEX
100%
75% 100% 90%

80%
100% 45%
60%
40%
20%
0%
m
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m
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ai
Ita
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Fr
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EXPERT INSIGHTS
The UK has the highest share of mobile ad spend get creative to reach high-value audiences. Many
of any country in this report. A strong mobile focus companies using Nanigans in the region rely heavily on
comes partly from the UK’s rank as a top global automated creative testing and lookalike audiences.
gaming market. New ad formats gain rapid adoption; These tools enable advertisers to rapidly test and
already one third of UK Facebook mobile ad spend optimize creative to reach the users they can most
goes to video inventory. The UK is a highly developed profitably monetize.
market for Facebook advertising, so marketers must

Facebook Advertising in Asia-Pacific: Global Insights Report | Nanigans
ABOUT NANIGANS
Nanigans advertising automation software empowers

in-house marketing teams to grow the revenue
impact of their digital advertising.
More than $600M in annualized ad spend is managed

through Nanigans software by commerce companies
worldwide that rely on Nanigans as a strategic lever of
customer growth and revenue generation.
Offered as Software-as-a-Service, Nanigans features

multichannel programmatic media buying, predictive
revenue optimization, and real-time business
intelligence across today’s most valuable digital
channels.
ABOUT THIS REPORT
This report is representative of Facebook® ad impressions delivered by customers leveraging Nanigans advertising automation software
to advertise in the European marketplace. It includes ad spend on both Facebook desktop and Facebook mobile, and excludes Facebook
Exchange and Instagram. Data specific to each studied country (Belgium, Denmark, France, Germany, Italy, the Netherlands, Spain, Sweden,
Switzerland, and the United Kingdom) is based on millions of dollars in geographically targeted Facebook ad spend between February 1,
2016 and July 31, 2016.
The vast majority of Nanigans customers are direct response advertisers at ecommerce, gaming, and other Internet and mobile companies.
Many leverage Nanigans’ ROI-based bidding algorithms, which focus on reaching high-value and high-ROI audiences (e.g. those who make
purchases) and typically cost more to reach. As such, the data in this report may not necessarily be a proxy for the overall Facebook
marketplace in each studied country.
Take control of your digital advertising with the software powering today’s
most successful in-house performance marketing teams.
Request a Demo
© 2016, Nanigans. All Rights Reserved.

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EUROPEAN FACEBOOK ADVERTISING

Digital ad spending in Europe grew to €36.2 billion

WHAT’S IN THE REPORT

Nanigans | Advertising Automation 1

0.4% $0.78 $2.75

Mobile vs. desktop ad spend

46% mobile 54% desktop

50% 75% 45%

CTR CPC CPM Mobile Share of Ad Spend Purchase Rate

All Metrics Are Indexed

Nanigans | Profit-Driven Advertising Automation 2

0.5% $0.96 $4.62

Mobile vs. desktop ad spend

65% mobile 35% desktop

69% 92% 76%

CTR CPC CPM Mobile Share of Ad Spend Purchase Rate

All Metrics Are Indexed

Nanigans | Profit-Driven Advertising Automation 3

0.4% $0.69 $2.49

Mobile vs. desktop ad spend

71% mobile 29% desktop

CTR CPC CPM Mobile Share of Ad Spend Purchase Rate

All Metrics Are Indexed

Nanigans | Profit-Driven Advertising Automation 4

0.5% $0.81 $3.95

Mobile vs. desktop ad spend

65% mobile 35% desktop

CTR CPC CPM Mobile Share of Ad Spend Purchase Rate

All Metrics Are Indexed

Nanigans | Profit-Driven Advertising Automation 5

0.6% $0.37 $2.07

Mobile vs. desktop ad spend

75% mobile 25% desktop

CTR CPC CPM Mobile Share of Ad Spend Purchase Rate

All Metrics Are Indexed

Nanigans | Profit-Driven Advertising Automation 6

0.7% $0.55 $3.75

Mobile vs. desktop ad spend

62% mobile 38% desktop

97% 53% 62%

CTR CPC CPM Mobile Share of Ad Spend Purchase Rate

All Metrics Are Indexed

Nanigans | Profit-Driven Advertising Automation 7

0.6% $0.32 $1.82

Mobile vs. desktop ad spend

69% mobile 31% desktop

60% 82% 30% 30%

CTR CPC CPM Mobile Share of Ad Spend Purchase Rate

All Metrics Are Indexed

Nanigans | Profit-Driven Advertising Automation 8

0.7% $0.83 $5.86

Mobile vs. desktop ad spend

73% mobile 27% desktop

80% 100% 80% 96%

CTR CPC CPM Mobile Share of Ad Spend Purchase Rate

All Metrics Are Indexed

Nanigans | Profit-Driven Advertising Automation 9

0.6% $0.96 $6.09

Mobile vs. desktop ad spend

69% mobile 31% desktop

90% 92% 100%

CTR CPC CPM Mobile Share of Ad Spend Purchase Rate

All Metrics Are Indexed

Nanigans | Profit-Driven Advertising Automation 10