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Weekly Mobile Breakdown: Facebook Mobile Ad Revenue Increasing

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Tina Products/Markets Analyst
January 24, 2013

According to the latest data from eMarketer, Facebook ad revenue from the mobile channel is increasing. In December 2012, 20.3% of Facebook ad spend was allocated to mobile, and that share is set to grow over the next few years. Mobile is expected to comprise 28% of Facebook ad spend by the end of 2013.

 

The article also points out that Android smartphones and iOS tablets are receiving a majority of Facebook mobile ad spend.  This would make sense as Android leads the global smartphone market while Apple dominates the global tablet market. It also appears that CPC for mobile Facebook ads are higher than desktop ads due to the “prime real estate” ads get in a mobile user’s news feed.

 

So, Facebook mobile ad spend is increasing, and currently has yet to peak.  Twenty-eight percent of Facebook ad spend goes to the mobile channel, but mobile comprises 43% of minutes spent on Facebook amongst U.S. users. As a matter of fact, Facebook overtook Google Maps as the top U.S. mobile app in September 2012. In addition, 44% of Facebook users access the network through mobile app, while 12% of its 1.07 billion users are mobile-only.

 

 

Based on the charts above, below are some key highlights and takeaways I think are important for mobile marketers & advertisers to consider.

 

KEY HIGHLIGHTS:

  • One in five Facebook advertising dollars is going to the mobile channel.
  • This year, total Facebook ad revenues worldwide would reach $6 billion, with 28% ($1.7 billion) of it coming from mobile.
  • The majority of Facebook mobile ad spend is going to Android smartphones and iOS tablets.

KEY TAKEAWAYS:

  • Facebook ad spend may not be effectively allocated to channels where users’ eyeballs are.
  • As mobile Facebook usage increases due to increasing smartphone and tablet penetration, CPC for desktop Facebook ads would probably continue falling.
  • However, perhaps mobile CPC would fall somewhat as well after peaking sometime in the future.
  • All signs point to a growing trend in usage of mobile and tablets as main computing devices.
  • Will stats for other sites such as YouTube and Twitter show the same trends?

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