Report: Facebook Mobile Ad Revenues Now 20 Percent Of Total

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facebook-logoAccording to financial analysts Facebook Q4 revenue (including payments, fees) could reach $1.5 billion. Search and social marketing platform Kenshoo says that just over 20 percent (20.3 percent) of the company’s ad revenue is now coming from mobile.

More than one in five ad dollars spent on Facebook are “delivered on mobile devices” according to Kenshoo.

The Kenshoo data are drawn “from a representative sample of global advertisers using Kenshoo Social to manage Facebook advertising campaigns tracking impressions, clicks, and conversions. The data set covers more than 2 million Facebook ad clicks and conversions delivered in November and December of 2012 across a wide range of verticals including retail, financial services, software, games, entertainment, and travel.”

Kenshoo explained that “mobile” also includes ads shown on tablets.

Unlike their paid-search counterparts, Facebook mobile ads cost more and generate fewer clicks than ads shown on the Facebook PC site. By comparison mobile paid-search ads cost less and deliver higher response rates (CTRs) than PC search ads, according to previously published data from Marin Software.

Kenshoo also reported that mobile ads on Facebook command a 70 percent premium over desktop ads.

Below is the average cost per click for ads on the PC and in mobile on Facebook. Kenshoo explained that ads on the PC are likely to covert 4X as often vs. mobile ads. Here conversion is defined to include Likes, app installs, event registration or other transactions.

Where tablets are concerned, the iPad sees 97 percent of the Facebook mobile ad spend/revenue. But on smartphones Android grabs the lions share: 71 percent to 29 percent for the iPhone.


About The Author

Greg Sterling is a Contributing Editor at Search Engine Land. He writes a personal blog, Screenwerk, about connecting the dots between digital media and real-world consumer behavior. He is also VP of Strategy and Insights for the Local Search Association. Follow him on Twitter or find him at Google+.

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