Monetization Deficiencies in Facebook Apps and Mobile Apps, Says Survey

In a new Harris Interactive study, it found that Facebook Inc (NASDAQ:FB) application users aren’t opposed to advertising, but online banner ads aren’t cutting it. Instead, they’re interested in innovative and interactive units.

Monetization Deficiencies in Facebook Apps and Mobile Apps, Says Survey

These results came from a study conducted for the social and mobile advertising platform, MediaBrix, and on Wednesday, the findings had been announced in a press release.

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According to David Cohen of, Harris Interactive’s study polled 2,236 U.S. adults ages 18 and older in July. It discovered that from Facebook Inc (NASDAQ:FB)’s one billion users, 33 percent have used an app on the social media site in the past twelve months, with  65 percent of Facebook app users during this time period, saying they played a game on the site.

The survey further discovered that 72 percent of Facebook app users (60 percent of smartphone users) prefer “immersive and interactive ad units,” while 28 percent (40 percent of smartphone users) were happy with standard banner ads.

As noted by the company’s press release, standard banner advertising includes a large amount of advertising moving across social and mobile apps. The survey found a defect in the way monetizing is being executed by social and mobile developers, and to meet consumers choices, the digital advertising industry needs to develop creative advertising formats for social and mobile platforms.

Additional survey news found that 87 percent of Facebook app users and 61 percent of smartphone owners prefer free apps, as opposed to paying for them. While noting that app developers need to produce revenue, 83 percent who prefer free apps would go with an ad-supported app, while 17 percent favor in-app purchases such as virtual currency.

An an even higher number of those opposed to paying, 88 percent of smartphone owners preferred ads, over the 12 percent with a preference for in-app purchases.

So what did MediaBrix CEO Ari Brandt think of survey’s results?

He said in the press release, “These survey findings confirm standard online banners and pre-roll video ads won’t cut it in today’s highly social and mobile world. If social and mobile platforms aren’t running interactive ads to achieve consumer engagement, then they are missing a huge opportunity to monetize with Fortune 500 marketing dollars.”

“Facebook and mobile developers need to be more innovative. Traditional banners and standard pre-roll just don’t work in this environment.”

The survey also found that 37 percent of Facebook app users prefer pre-roll ads in Facebook apps, while 63 percent would like to either start the video ad, or have it come during natural break in the game or app. When broken down by smartphone users, 38 percent prefer viewing pre-roll video ads in mobile apps, while 62 percent like to either initiate the video ad, or have it again appear in a natural break in the game or app.

What does this mean? Tamara Bousquet, executive media director of MEA Digital, explained in the release, “People are turned off by standard online advertising running in social and mobile environments. The social and mobile advertising solutions that are going to work, are those that offer a unique and interactive experience for consumers, and cater to a good user experience.”