What’s really incredible is that one year ago, Facebook didn’t have ads on their mobile apps but once they filed their IPO it became a huge priority.
A year later, its an entirely different picture:
The numbers come from a report by Kenshoo Social and eMarketer agrees, they’re in the right ballpark. They quote stats from Cowen and Company which come in with a slightly lower split but it’s still good news for Facebook. Look at the predicted climb over the next few years.
Facebook is putting a lot of stock in those mobile ads and that means they come with a premium price – $1.38 per click versus .81 per click on the desktop. It’s a bargain, because mobile ads have the potential to be more engaging than desktops, primarily because of the lack of competition. One ad on a small screen is going to draw the eye better than one out of four ads tucked in the sidebar of a full desktop screen. Mobile ads have tighter targeting, so you have a better chance of not only catching someone’s attention, but catching the attention of a true, potential customer.
The downside for Facebook is the limited mobile landscape. Without a sidebar, ads have to fit into the newsfeed flow. Pack in too many ads and watch the users rebel.
With limited space and more advertisers clamoring for a piece of pie, where does Facebook go from here? The logical step would be their own ad network – something they considered and then abandoned at the end of last year. Think they’re over the concept for good? I wouldn’t bet on it.