Facebook Inc (NASDAQ:FB)’s advertising on iOS devices offer much higher return on investment for advertisers. In fact, research from Nanigans indicates that advertisers see 18 times greater returns from their iOS ads than they do on Android ads. VentureBeat was one of the first to publish details on the study.
Facebook’s Android ads coost too much
Researchers conducting the study for Nanigans examined over 200 billion ads on Facebook Inc (NASDAQ:FB)’s network between January and September of this year. They looked at more than 100 different advertisers on Nanigans’ platform. The company is one of Facebook’s largest advertising customers.
The report indicates that there’s a bit of a premium for Facebook ads on iOS devices. It costs about $4.99 per thousand impressions, compared to $4.87 per thousand impressions on Android devices. The average cost per click for Android is much lower than it is for iOS. Advertisers are paying 18 cents per click on Android devices, but 40 cents per click on iOS devices.
Apple returns higher revenue per click
According to the study, the place where Android gets in trouble is revenue per click. On iOS devices, advertisers see six times more revenue than they do on Android. Return on investment is 18 times as high as it is on Android.
In fact, these numbers mean that advertisers who buy Facebook Inc (NASDAQ:FB)’s Android ads see a negative return on investment, which means they pay more for the advertisers than what they earn from them. On average, the losses from advertising on Android are as much as 10 percent, according to Nanigans. Returns from iOS ads, however, are over 160 percent.
Why advertisers choose pay more up front
Of course the return on investment numbers show clearly why some advertisers prefer to advertise on iOS. Since the long-term return on investment is higher, they don’t mind paying more money up front. According to a Nanigans executive, they’re looking for long-time customers rather than one-time customers, meaning they look beyond just one click.