Is Facebook FINALLY Figuring Out Its Mobile Strategy?
Maybe Facebook (NASDAQ:FB) is finally beginning to put mobile jigsaw pieces together. A new study by TBG Digital has found that the social network’s mobile ad click-through rate is now about 1.1 percent, more than four times Twitter’s 0.266 percent. Click-through rates indicate how relevant and interesting ads are to users. Facebook’s mobile ads also received click-through rates 14 times more than that of desktop ads on average.
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In addition, Facebook’s cost-per-thousand impressions in the just-finished quarter rose by 58 percent compared to the same period last year, meaning the company is now earning more from its ads, while overall engagement was also up by 11 percent. Among its top ad territories, Germany had the largest CPM increase quarter-over-quarter at 31 percent, the U.S. was next at 25 percent, Canada saw a 21 percent rise, and the U.K. had a 7 percent increase.
Sponsored Stories also performed better than standard ads, receiving 53 percent higher click-through rates than standard ads.
TBG said it had noted an increased acceptance from brands and advertisers of Facebook’s business model and they were now blending traditional digital advertising metrics with new ones such as social engagement. “Our clients, upon our advice, are now willing to pay more for quality clicks and fans,” the report said. “Focus is shifting toward measurable engagement and the difference social media connections are making to their bottom line.”
Mobile growth has been problematic for Facebook (NASDAQ:FB), with the company as well as its underwriters and other analysts expressing concerns about the potential of steady revenue generation from the platform.
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