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Sidecar FB Instagram Retail Ad Benchmarks in 2020 June2021With companies continue to increase their investment in social media advertising, especially in the last year, two platforms seeing plenty of investment are Facebook and Instagram. Benchmark data from Sidecar shows how Facebook and Instagram performed last year for retailers advertising on the platforms.

On average, the click-through rate (CTR) for retail Facebook ads increased 6% year-over-year (y-o-y) in 2020 to 1.32%. Mass Merchant retailers had the highest CTR (1.77%), more than doubling (+109%) y-o-y, followed by Automotive Parts & Accessories (1.68%). Toys & Hobbies, on the other hand, had the lowest at 0.93%.

Automotive Parts & Accessories was the top-performing vertical for Return on Ad Spend (RoAS) at 17.98 — a y-o-y increase of 218%. Automotive Parts was followed by Apparel & Accessories (15.34) and House & Home (14.33). Although Mass Merchant saw the biggest y-o-y increase (372%) in RoAS, it had the second-lowest RoAS (6.66), while Toys & Hobbies had the lowest (5.71).

While House & Home saw its average order value (AOV) decrease 37% y-o-y in 2020, it still managed to maintain the highest AOV $388.50 of all the retail verticals analyzed. Meanwhile, Toys & Hobbies had the lowest AOV at $53.14.

Instagram Ad Benchmarks

Client data from Merkle shows that in the fourth quarter of 2020, Instagram accounted for one-third of total Facebook ad spend. Sidecar notes that, for advertising in the retail industry, Instagram has a higher CPC than Facebook ($0.86 vs. $0.57), but Instagram also boasts a higher conversion rate than its parent company (8.07% vs. 6.57%).

Retail Instagram ads had an average CTR of 0.58%. House & Home had the best CTR of all the retail verticals examined at 1.14%, with Automotive Parts & Accessories having the second-highest (1.03%). The vertical with the lowest CTR was Food & Drink at 0.44% (down 40% y-o-y).

House & Home also had the highest RoAS. Increasing by a substantial 431% over 2019, the vertical had a RoAS of 17.42, which was well above the retail average RoAS of 8.83. Automotive Parts & Accessories had the second-highest RoAS (15.03; up 582%), while Food & Drink had the lowest RoAS of 2.69.

Following the established trend, House & Home also had the highest AOV ($333.20), followed by Automotive Parts & accessories ($268.78), with Food & Drink bringing in the lowest at $52.97.

Read more here.

About the Data: Findings are based on an analysis of a sample of US retailers that had active campaigns on Facebook and Instagram for the full years of 2019 and 2020.

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