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BizReport : Mobile Marketing : January 07, 2013

More than 20% of Facebook ad revenue now comes from mobile

Analysis of a dataset of more than 2 million ad clicks and conversions, drawn from a representative sample of global advertisers using Kenshoo Social to manage Facebook ad campaigns, reveals that more than 20% of the social network's ad revenue now comes from mobile.

by Helen Leggatt

207_Kenshoo_logo.jpgFacebook only started showing ads on mobile devices in March last year yet, in less than 12 months, a fair chunk of advertisers' spend is going on mobile ads both on tablets and smartphones. Just over 20% (20.3%) of ad revenue now comes from mobile.

"The world's top brands have embraced Facebook mobile advertising and we expect the channel to become increasingly competitive as new devices deliver enhanced interactive experiences," said Aaron Goldman, Kenshoo CMO.

The study also revealed that mobile ad rates on Facebook represent a 70% price premium over desktop ads. While ad rates (CPC) for desktop is $0.81 on mobile that rate is $1.38.

Another interesting finding from the study is that advertisers aren't putting their money into advertising on Android's tablet. iOS receives 97% of the tablet ad spend. However, 71% of Facebook mobile ad spend on smartphones goes to Android.

The success and optimism surrounding Facebook mobile advertising was the cause of a 5% rise in the social network's stock price earlier this month.

"We are incrementally positive on Facebook shares into 2013 as we believe it remains very early in the trajectory of Facebook's mobile advertising," say analysts at JPMorgan. "Importantly, we believe marketers are also realizing that there is branding and awareness value in Facebook ads and that users don't necessarily have to click through to drive returns."

Tags: advertising, Facebook ads, mobile advertising, mobile trends, social marketing, social media, social network

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