What Facebook Mobile Advertising Revenue Crisis?

By David Cohen 

Facebook’s move to allow advertisers to purchase sponsored stories exclusively targeted to mobile news feeds is apparently paying off, at least according to Facebook and social advertising outfit TBG Digital, and if the social network and brands can sustain the momentum, it may present a solution to Facebook’s oft-reported mobile revenue woes.

TechCrunch reported that TBG studied 278,389,453 sponsored story ad impressions across 17 of its clients and found that mobile sponsored stories tallied an impressive 1.14 percent click-through rate and $0.86 cost per click, compared with desktop sponsored stories in the news feed, which saw a 0.588 percent CTR and a CPC of $0.63.

TBG told TechCrunch Facebook earned $9.86 per 1,000 impressions (eCPM) from mobile sponsored stories, versus an eCPM of $3.72 for desktop sponsored stories, meaning the social network is earning 2.65 times more on the former.

TBG Digital CEO Simon Mansell told TechCrunch:

This is huge news that shows that mobile is potentially going to be the big revenue driver that Facebook needs, especially because the usage is there.

Facebook campaign manager AdParlor reported similar figures, telling TechCrunch that in analyzing one of its campaigns “in the tens of thousands of dollars,” it found that mobile sponsored stories had a CTR of 0.821 percent, compared with 0.032 percent for “traditional” Facebook ad campaigns that focus on the sidebar, with some presence in the news feed for both desktops and mobile. AdParlor also found, however, that the click-to-like conversion rate was 55 percent on mobile, versus 72 percent on traditional placements.

AdParlor CEO Hussein Fazal told TechCrunch:

By allowing advertisers to show ads only on mobile, Facebook is definitely going to be able to generate more revenue. We have seen a ton of interest from advertisers who want to advertise just on mobile.

Readers: Do you think the results reported by TBG Digital and AdParlor, along with potential new initiatives by Facebook, can help Facebook reverse the negative spin about its mobile advertising revenue prospects?

Image courtesy of Shutterstock.