Mobile ads are growing at an astounding 62% over last year’s spending. Since that number last year FaceBook has entered into the fray. Enough time has now passed that we can begin to compare the different advertising units FaceBook offers to mobile users.
Sponsored Story is an advertising unit that places an ad inside a newsfeed. The ad tells the user how many of her friends have also liked the brand and there is a large call to action for the user to like the brand. These ads are returning a 12 times higher click through rate than comparable ads on FaceBook’s desktop versions. The price point is also much lower, so it is an overall success for creating brand fans.
An important reveal from the data is that if a user makes the first purchase on a mobile device then she is 2.5 times more likely to make a second purchase. These customers are also spending 8 times as much money from the foot traffic and the desktop users.
As the industry catches up to this, then it is reasonable to expect the prices to increase, which will eat into their investment potential. For now the social media agency needs to encourage mobile advertising for its clients. The market is so lucrative that there should even be a discussion about relocating all FaceBook ads onto mobile devices.