Facebook Inc (FB): Mobile Ads More Expensive Than Desktop Ads

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Carolyn Everson, Facebook Inc (NASDAQ:FB)’s VP of global marketing solutions has claimed that the cost of mobile ads is more than the desktop ads, says a report from Mashable. According to Everson it involves more cost to reach 1000 customers on mobile as compared to the desktop. However, she did not clarify the difference.

Facebook Inc (FB): Mobile Ads More Expensive Than Desktop Ads

Mobile ads cost more than the desktop ads due to which the right-hand column direct-response Marketplace ads that can be seen on the Facebook Inc (NASDAQ:FB) Desktop do not run on mobile, says the VP.

A different thinking

According to the presentation of Mary Meeker, in 2012, who is a Wall Street analyst, CPMs on mobile overall is $0.75 as against $3.50 for desktop.

According to Greg Stuart who is the CEO of Mobile Marketing Association says he has no knowledge of the official CPM figure and any figure may not be correct. “There just isn’t good benchmarking,” he says. “And I’m not even sure it’s a good question because at the same time you have people selling dollar inventory, you have other people selling $80 inventory. There’s no such thing as an average CPM. It’s a complicated concept for me.”

Mobile ads still a tiny portion

According to Stuart on an average a marketer shells out only 2 percent of the budget on mobile advertising. In order to overcome this issue Jim Stengel, former CMO of The Procter & Gamble Company (NYSE:PG) was recruited in MMA to work in order to allure more marketers.

According to Everson, who is the member of MMA executive committee, the marketers are reluctant to extent because they think that geo-targeting is an important factor for effectiveness. The marketers want the mobile to be location specific and highly tailored. Everson said that at present mobile is a mass medium.

Google No.1 in Mobile Ads

According to a study done by e-Marketer Google Inc (NASDAQ:GOOG) earned the highest revenue in mobile advertising all over the world. As per the data, the revenue earned last year from the mobile ads came in at $4.61 billion, and it is estimated to increase by 92.1 percent to $8.85 billion.

Facebook Inc (NASDAQ:FB) also earned considerable revenue in mobile advertising in 2013. In 2011, the social network could not earn any revenue. However, Facebook Inc (NASDAQ:FB) earned $470 million in mobile ads in the previous year. According to the marketing research firm the mobile ads revenue will increase by 333 percent and will reach over $2 billion this year.

According to the research, Twitter is the one that will gain maximum growth rate in revenues globally.

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