How Mobile Ads Affected Facebook's Q2 Revenue


Photo: AdParlor

Facebook introduced its mobile-only ad option—they’re officially called “page like sponsored stories”—on June 5, so less than one month of sales’ data from mobile will be included in Facebook’s Q2 2012 earnings results on July 26.Nonetheless, the new mobile ads are already having a pronounced effect on Facebook’s business, according to AdParlor, a manager of Facebook ad campaigns.

They’re much more effective than ads that appear on desktop users’ screens for one thing: AdParlor saw click-through rates between 11 and 15 times greater than desktop, the company reports.

AdParlor put together this report on The State of Facebook Mobile Advertising based on 200 million of the 1 billion impressions it serves daily for clients such as American Express, LG, Audi, L’Oreal, Mindshare, Starcom, and OMD.

Disclosure: The author owns 30 shares of Facebook stock.

First, the basics: This is what a mobile ad looks like on Facebook.

Depending on the campaign, AdParlor saw 11, 13 and 15 times greater click-through rates on Facebook mobile than Facebook's other non-mobile ad formats.

Good news for clients: The cost-per-click is 30% cheaper on mobile than for non-mobile ads.

The cost-per-fan conversion rate is 16% lower, however. This could be because users are scrolling quickly by the Like button—and missing it. Or it could be that mobile users click on ads by mistake, and therefore don't want to become page fans.

Entertainment brands get much better results than finance brands.

For some reason, Android users click on mobile Facebook ads more than anyone else. (AdParlor has yet to figure out why this is.)

Now see what's happening in terms of ad revenue and performance ...

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