While Facebook has been able to attain $3 billion from display advertising, they have continually struggled with mobile advertising. According to recent studies by Facebook’s biggest API partners who have created platforms for businesses to efficiently buy Facebook ads, TBG Digital, AdParlor, Nanigans, and Spruce Media, it seems Facebook may finally be on the right track.
Mobile Strategy
In a move to monetize their mobile app, Facebook began offering a mobile-only version of Sponsored Stories just a few weeks ago. Sponsored stories appear in a user’s newsfeed and look like normal updates from their Facebook friends with the exception of the word ‘sponsored stories inside the update. Previously, both mobile and desktop ads were sold as one package as opposed to stand alone products.
Early signs suggests Facebook has successfully met this challenge. According to the studies by TBG Digital, AdParlor, Nanigans, and Spruce Media, since Facebook began selling mobile ads separately from their internet ads, Facebook mobile Sponsored Stories are generating over 13 times the click-through rates and are earning 11.2 times the money per impression (eCPM) on mobile. On the other hand, eCPM of Sponsored Stories shown on the internet are only generating 1.93 times the CTR and 2.65 times.
Facebook is also reportedly looking to expand its mobile ad solutions to include location-based advertisements, which has been shown to generate higher click through rates than non-location targeted ads.
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