Sep 24, 2020
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How Facebook–and Its Advertisers–Can Make Money From Mobile

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Lucy Jacobs Spruce Media If there s something that gave investors pause about Facebook s underwhelming initial public offering last month–besides Nasdaq s royal screwup–it was that the social network has been AWOL from the hottest trend in tech today: mobile. Facebook admitted shortly before its IPO that it wasn t making any money on mobile advertising even as its users increasingly access the service from their smartphones and tablets

 

But it s also quite early in the opportunities associated with skyrocketing use of mobile devices whether it s games or advertising or payments. Lucy Jacobs COO at Spruce Media a company that helps brands do performance advertising on Facebook offered a brief perspective on what Facebook and brands hoping to apply it for marketing can do to make money from all the people ditching their PCs for iPhones iPads and Android devices

 

Here s what she had to say during a talk at AlwaysOn s OnMobile conference in Redwood City Calif. : Only about 32% of the area has a cellular phone to this point she says and most of them aren t smartphones so there s various opportunity. We re currently monetizing only 1% of all ad impressions although 10% of time is spent on mobile devices

 

Result: Ad rates are five times lower on mobile devices vs. desktops. Facebook is well-positioned to monetize mobile Jacobs says. Why? Very rapid user growth large variety of innovative developers broad base of advertisers highly engaged consumers and apps which are essential utilities. Facebook now has four formats or locations for mobile ads–in the scoop feed at the home page in the news feed in mobile at the right-hand side and at the log-out page

 

And last week it announced the ability to run just mobile ads in place of having to do desktop and mobile ads simultaneously. PROMOTED Civic Nation BRANDVOICE | Paid Program
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Click-through rates are 1% to 5% or 10 times higher than on standard Facebook ads. That implies that mobile has a large upside for Facebook since clicks on its other ads are way lower than the average display ad. However conversion rates or the rate at which people buy something fill out a kind or the like are one-third lower

 

She doesn t say why. Other marketers and agencies have suggested that it s likely people using their devices at the go which include in or near stores simply buy the product in the store but that purchase doesn t get attributed to the Facebook ad. Jacobs offers several tips and tricks for brands using mobile ads on Facebook: * Social needs to be baked into the logo s core

 

* Facebook is not about advertising it s about use-vertising–meaning ads have got to be highly relevant not just puffery. * Facebook brand pages now constitute the ad creative more than the ad itself. * Frequent page posts are critical ideally every day. * Creative refresh is key–no stale ads that run day after day

 

* There needs to be a consistent flow between creative and the landing page (a basic at the Web as well). In other words nothing really different in mobile marketing vs. desktop. Except as people at the conference later note the ability to ascertain location potentially can make for much more relevant ads

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