Why Facebook Advertisers Spend More on Mobile

Advertisers are spending 20.3 percent of their Facebook budgets on mobile ads, according to new data from Kenshoo Social. The company’s analysis of two million Facebook ad clicks and conversions also revealed that ad spends vary dramatically between Android and iOS devices.

Kenshoo will present these and other trends in Facebook mobile advertising at the 2013 Citi Global Internet, Media & Telecommunications Conference at The Bellagio Hotel in Las Vegas. Among the key findings:

Mobile ads are 70 percent more expensive than desktop ads.

According to Todd Herrold, senior director of product marketing for Kenshoo Social, this is due to a relatively smaller amount of available paid inventory on mobile than on the desktop. “Whereas Facebook on the desktop displays multiple ads throughout the newsfeed and the right hand side, mobile is confined to the newsfeed only and Facebook has been very cautious about the balance between organic and paid content in this environment,” he explained. “As such, the number and frequency of ads in the mobile newsfeed is limited.”

Not all devices and operating systems are created equally.

Analysts found that the iPad had a 97 percent share of Facebook advertisers’ ad spend for tablets, but the Android had a 71 percent share of Facebook advertisers’ ad spend for smartphones.

“The most significant reason is the changing landscape of install bases for mobile devices,” said Herrold.  ”Today, the android OS dominates market share and shipments of smartphones whereas iPad/iOS still retains the lead for install base of tablet devices.”

Other advertisers focused on specific platforms based how compatible their apps and/or products and services were on a given device, especially those in the app, games, and telecom verticals.

Added Kenshoo CMO Aaron Goldman in a statement,”The world’s top brands have embraced Facebook mobile advertising and we expect the channel to become increasingly competitive as new devices, like those on display at the Consumer Electronics Show this week, deliver enhanced interactive experiences.”

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