Worldwide Facebook Ad Spending: Mobile Platform More Responsive (But Expensive) For Advertisers [Report]

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Facebook made its mobile presence in last year 2012. At the beginning it showed a sluggish entry to the mobile market section and now soon after the completion of a year, the reports mark vibrant change in its mobile market space. The report has came up with some facts and figures about Facebook ad revenues from 2012 – 2018 according to desktop and mobile.

Kenshoo Social, a digital software marketing firm noted that about one in five advertising amount on Facebook was spent on a mobile advertising section.

The statistics were further bifurcated by specific mobile devices. The study also marks that major part of the advertising amount was spent on Smartphones. Android accounted for most of the spending on Smartphones by 71% while, iOS accounted for the majority of ad spending on Tablets by 97%.

Also, mobile display advertising has proven its worth with high user engagement. Its also worth to note at this point that, 66 million Android users and 91 million iPhone users were noted as Facebook’s mobile active users as of September 2011 was. In December 2011 Android surpassed the iOS app, later in November 2012 Facebook’s Android user base reached to 192.8 million while iPhone had 147.2 million Facebook user base. This proves that Android has a major hand in Facebook’s  reach of 604 million mobile users by the end of Q3 2012.

The analysis by a research firm Cowen and company predicts that, Facebook mobile ad revenue worldwide would reach $4.60 billion by 2018. Its also been predicted that the Facebook ad revenue for this year sees 240% growth compared to last year, which was about $0.50 billion. The company also estimates that by 2016 the Facebook’s desktop ad revenue would surpass mobile ad revenue by $1.1 billion. And, by 2018 Facebook’s desktop ad revenue would reach $5.30 billion while mobile ad revenues would stay back by $0.7 billion.

Most interestingly, by this year the Facebook ad revenue by desktop is assumed to reach $4.0 billion which would easily overtake mobile ad revenue by $2.3 billion.

Also, Facebook’s ad cost-per-click on its mobile is $1.38 compared to only $0.81 for its desktop ads. A Cowen and company also estimated that, Facebook’s worldwide ad revenue would reach $6 billion by the end of 2013, of which $1.7 billion would be credited from mobile spending alone. But, eMarketer’s estimate is slightly lower than the other Company’s prediction, at roughly $5.54 billion.

According to another analysis conducted during November and December 2012, from clients across a various verticals, including games, retail, financial services, travel, and software. Advertisers are spending over 20% of their Facebook budgets on mobile ads. Well, 14% of Facebook ad revenue came from mobile in October 2012, which is over 6% of boom. Mobile ads are 70% more expensive than desktop ads. The reason is due to a relatively smaller amount of available paid inventory on mobile than on the desktop.

Its important to note that  advertisers are pretty selective in mobile users, they’re not leveraging on all mobile users. Not to wonder, advertisers spent more to reach iPad users than Android Tablet users, with 97% of Tablet spend going to Apple’s device. On the other side, Android won out in attracting a larger share of Smartphone dollars, 71% versus the iPhone’s 29%. Will  Facebook let advertisers target their mobile ads by device ??