Despite, or perhaps because of, plummeting organic reach, Nanigans reports that advertisers shelled out 56% of their Facebook advertising budgets on mobile, trumping desktop’s waning 44%.
“Facebook has become a more mature platform, catalyzing all sides of their ad ecosystem, from offering ad products that perform at scale in meeting a variety of advertiser goals to create an ad experience that end consumers actually engage with,” said Cheryl Morris, director of market development at Nanigans. “Just look at mobile alone: Facebook went from no presence to a $1 billion business in a year’s time – turning the industry on its head in terms of expectations around creative and relevancy.”
Advertisers clearly see a value exchange in their relationship with Facebook, which has more than 1 billion active mobile users. That massive audience, coupled with the potential revenue coming in via mobile all install ads, seems to be proving more potent to advertisers than the steadily rising cost of advertising on Facebook.
It’s mobile for the win, but Morris advises against putting desktop on the back burner.
“In general, ad dollars follow consumer time spent, and right now for our consumers, that’s increasingly on mobile – but that doesn’t mean spend to desktop will be completely eclipsed,” Morris says. “There are plenty of challenges and work to do in marrying data and understanding behavior across devices, from better attribution to storyboarding that generates demand and captures intent.”
But when it comes to Facebook’s effectiveness, the jury isn’t out. Early adopters who went big on Facebook at the beginning have had time to hone their strategies by now, Morris said. They know their KPIs and they’ve had time to develop solid in-house knowledge, which directly correlates to their confidence in the channel and the money they spend there.
“Our customers consider Facebook always, right alongside search (and) we’re not seeing demand slow nor performance dip,” Morris said. “Will it be as large as search? We’re not sure. But Facebook has certainly ushered in a new era of display.”
Facebook’s next earnings call is scheduled for July 23.
Correction 8/10: The original version of this article stated CPIs were at $1.95, when it's CPMs. The article has been edited to reflect the change.