Kenshoo released new data indicating that Facebook’s mobile ad revenue is on the rise. The social networking giant saw a gain from 14% to 20% of its ad revenue since October of 2012. The growth is impressive considering that mobile ads have only started appearing in March of 2012.
Moreover, the company also charges 70% more for mobile ads than its desktop ads. Since Facebook’s webpage shows many more ads per page, it cannot guarantee that users actually sees or engages with as like its mobile version. There is a danger in placing too many ads into mobile as it might sour users’ experience of the app, so Facebook will need to strategize a careful balance of increasing costs per ad once they are proven to be effective.
The success of Facebook apps will also be determined on whether it can effectively target its users. Early indications shows that click-through rates are potentially lucrative for ads placed into users’ news feed. Maintaining and growing impressive ad numbers will be especially crucial in the next phase of Facebook ad redesigns. Monetization will be a key issue in 2013, but not without great user experience.