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Facebook’s Mobile Business Soars

facebook-logo1.gifOver the past year, the mobile industry has followed with great interest the progress of mobile advertising on social media site Facebook.

A new report from Facebook now confirms that mobile advertising is becoming a major source of revenue for the company.



About 6 months ago, we published an article Facebook Mobile Ads Off To A Strong Start, which gave some early indication of the strong early uptake of Facebook ads. CTR rates on sponsored mobile stories were reportedly up to 13 times the CTR from Facebook desktop ads, and the eCPM up to 11 times.

More recently, in November 2012, we reported that mobile ads were beginning to be a serious business - Facebook Shows It Can Make Money From Mobile - with the company reporting revenue of $150 million from mobile ad sales.

Now, new research has shown that fully 20% of ad spending on Facebook now comes through mobile devices, according to ad platform Kenshoo. It’s a significant rise from the 14% reported just last October, and indicative of the social network’s desire to develop strong monetisation of the mobile channel in a world that’s growing ever fonder of mobile.

Mobile ad spending was a cause for concern for many investors when Facebook announced its IPO last year, as the company only first began running advertising on its mobile platform in March of that year. Despite some apparent initial hesitation for this, current information suggests that this approach really is beginning to pay strong dividends for the company.

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According to Kenshoo, mobile ads on Facebook come at a whopping premium of 70% to desktop ads. Part of this may be driven by the fact that there are often many - sometimes up to 6 or 7 - ads on a typical desktop Facebook page, whereas with mobile there will most likely be only one, thus most likely commanding much higher percentage of attention from the consumer.

Facebook has also focused a lot of attention on the design of their for mobile ad units in recent months. This has been an attempt to stay fresh and not be tuned out, and has also had a positive impact on the revenue generated.

Interestingly, Kenshoo’s study also showed that 71% of Facebook’s mobile ad spend comes from Android devices. If this trend continues, it may well affect the company’s priorities on a larger scale, forcing them to dedicate more time to Google’s operating system than iOS.


15.01.2013    Tags: ,
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