Mobile Ad Execs Weigh In on Facebook’s Q1 Earnings Report


ADOTAS – Both in anticipation and on the heels of Facebook’s Q1 earnings report announcement, in which mobile advertising accounted for $375 million in revenue, a few thought leaders in the mobile ad space have offered their comments in on its implications.


“As Facebook continues to innovate in the mobile space, there’s an increasingly compelling opportunity for advertisers, especially with Facebook’s mobile app install product. In fact, according to our data, cost per install results are proving to be 20 percent cheaper than other top performing ad networks. For brands seeking to cost-effectively reach a highly engaged mobile audience, app marketing through Facebook must be part of their strategic plan.” – Micah Adler (pictured), CEO of Fiksu, whose mobile app marketing technology platform integrates with Facebook to optimize mobile advertising.

“Facebook has reported that its browser usage has shifted almost completely over to their mobile apps (80% of total users) and is now allocating massive resources to monetizing its mobile traffic, drawing big spenders to experiment with various advertising techniques. A key to sustainable future growth in ad revenue will be a utilization of Facebook’s  vast amount of user data in ad serving techniques, making ads substantially more relevant to the end user and in turn more profitable for the advertiser.”— Sephi Shapira, CEO of MassiveImpact, a leading performance-based mobile advertising company.

“Facebook was initially punished for not showing the market that they ‘got’ mobile monetization. They always ‘got it’ in my opinion, they were just taking their time on introducing it to protect the user experience. Facebook, along with Pandora, are great examples of publishers who can leverage their mobile audience with ad dollars. Facebook will continue to scale in mobile by: testing new native mobile ad units, focus on attribution and conversion tracking, adding mobile inventory to FBX (their exchange).  It’s not only good for Facebook; it’s good for the overall mobile ad ecosystem.” — Howie Schwartz, CEO and Founder, Human Demand.

Facebook’s ad revenue is huge it’s larger than almost any company in the advertising space and growing, but mobile ad revenue is still a concern and is lagging significantly behind mobile use: 60% of Facebook sessions are initiated on mobile devices, yet Facebook only took in a quarter of its total ad revenue from its mobile platform last quarter. Facebook is finding some success on mobile because its ad strategy does not focus just on big brands – a focus on big brands is why Apple has failed at mobile advertising Despite Facebook losing overall members, mobile installs are absolutely through the roof. These installs have made Facebook one of the biggest mobile ad suppliers in the world and are really what’s driving mobile revenue. Facebook’s goal in mobile is to be the start screen for every mobile interaction that takes place – if you’re going to message someone, it goes through Facebook; if you’re going to call someone, it goes through Facebook; etc… Home is the starting place, but Facebook will move aggressively to cement itself in the average user’s mobile experience. Cross-platform targeting remains the single biggest prize for Facebook’s mobile revenue. Facebook’s precise user profiles, combined with targeting users across devices and off Facebook, will be an absolute gold mine when they figure it out.” Krishna Subramanian, CMO of public mobile advertising/marketing company Velti.



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