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Mobile Advertising Raises One-Fifth Of Total Facebook Ad Revenue

Facebook’s latest efforts to generate more revenue from advertising on its multiple mobile platforms have paid off. Mobile advertisements now account for one-fifth of total revenue in advertising on the world’s largest social networking company.

In October of last year, Facebook released its third quarter fiscal results, which showed mobile advertisements were responsible for 14 percent of the company’s total advertising revenue, in a presentation to its stockholders and industry analysts.

Kenshoo Social, a global social marketing platform, says its latest study of more than two million ad clicks and conversions on Facebook delivered between November and December 2012 show that mobile advertising revenue now accounts for 20.3 percent of Facebook’s total advertising revenue.

Aaron Goldman, chief marketing officer (CMO) at Kenshoo, says Facebook mobile advertising has become a new channel for some of the world’s major brands who have embraced the power of social media marketing.

Kenshoo Social expects Facebook’s income-generating channel to be more and more aggressive as new and future devices, including the mobile phones and tablets launched at the Consumer Electronics Show this week, provide better interactive experiences on both ends.

The study found that the Apple iPad accounted for 97 percent of mobile advertising on tablets, but Google’s Android operating system dominated the smartphone arena by accounting for 71 percent of advertisements on the platform.

Kenshoo added that mobile advertisements on Facebook have a 70 percent price premium over its desktop counterpart, and Facebook users on mobile platforms have 20 percent more chance to visit the site on a daily average.

When Facebook announced its plans to go public last year, analysts and experts repeatedly pointed out the mobile platform as a major possible danger to the company. Facebook took heed of the advices and started making concerted actions to look for ways to turn it into an income-generating platform.

The latest figures show that 604 million, out of the 1.07 billion, Facebook users visit the site through their mobile devices. The mobile users can be broken down into 470 million Facebook smartphone app users across all supported mobile operating systems and 134 million mobile Web users.

Latest estimated figures reveal that Facebook has around 175 million Android users, 140 million iPhone users, 60 million BlackBerry users, and 45 million iPad users. (Facebook’s Windows Phone user base reportedly is still trifling.)

Kenshoo Social’s study covers a broad range of verticals: entertainment, games, financial services, retail, software, and travel. The firm says its mobile metrics include phones and tablets.

Mobile Advertising Raises One-Fifth Of Total Facebook Ad Revenue

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