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More on Facebook: Mobile VP Vaughan Smith claims the company's mobile ad click rates are 10x...

More on Facebook: Mobile VP Vaughan Smith claims the company's mobile ad click rates are 10x higher than its PC click rates, which are below-average for display ads. Also, backing up the remarks of co-workers, Vaughan claims Facebook's mobile coding is now handled by its main product teams, rather than mobile-specific units. Wedbush recently touted Facebook's improving mobile monetization, which is necessary as U.S. PC use declines. Q3 results arrive on Tuesday. (also)
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Comments (5)
  • rephinbar
    , contributor
    Comments (228) | Send Message
     
    "...ad click rates are 10x higher than its PC click rates.."

     

    IMO, 2 things are driving this:

     

    1 - It's a new feature and people are curious which means long term they will not sustain this kind of click rate

     

    2- The ads are way more intrusive than the desktop where you can just ignore them altogether, in which case this will drive users away

     

    Not sustainable in either case.

     

    I personally haven't seen any of these mobile ads so can't comment further.

     

    I can, however, comment about the all-too-obvious timing of this PR - just ahead of the earnings release and looks to me like a pre-emptive PR for an earnings release that's below expectations.
    19 Oct 2012, 07:00 PM Reply Like
  • tcumberford
    , contributor
    Comments (40) | Send Message
     
    If people are clicking these mobile ads, I doubt that it's on purpose. They're somewhat deceptive on your phone. The real test to the longevity of the ads will not be how many clicks they can trick you into, it will be the ROI for the advertisers. You can have all the clicks in the world, but unless the people are buying from you, it's pretty damn useless.
    19 Oct 2012, 07:22 PM Reply Like
  • gwynfryn
    , contributor
    Comments (4336) | Send Message
     
    The last thing I'd buy a mobile phone for, would be to look at adverts!
    20 Oct 2012, 05:51 AM Reply Like
  • Michael Eisenberg
    , contributor
    Comments (279) | Send Message
     
    I bought FB stock last week for first time. I think their ads are starting to work on all platforms. May only turn up in Q4 though.
    20 Oct 2012, 03:59 PM Reply Like
  • rephinbar
    , contributor
    Comments (228) | Send Message
     
    Michael,

     

    With >12% user attrition on the desktop and only 6% migration to mobile, do you really think their mobile ads will replace desktop ad revenue?

     

    Seems very hard to rationalize that, especially given that it's much harder to deliver ads on mobile in a non-intrusive way like on the desktop. And if their mobile ads are intrusive, users will ditch FB altogether.
    20 Oct 2012, 05:04 PM Reply Like
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