Weekly Digital News Roundup: July 16 – 20
- Venture Beat reports that, as a sign that Facebook may finally be getting its mobile act together, a new study by TBG Digital indicates Facebook’s mobile ad click-through rate is between 1 and 3 percent on desktop and is even higher on mobile.
- Mobile growth has been troublesome for Facebook, and the company made a case before its IPO that mobile was one of its biggest risk factors. The company might even be planning to build its own phone to deal with this issue. But the new study at least provides a glimmer of hope for the company’s mobile ad prospects and shows that its newsfeed engagement is working.
- Another important aspect of the report is that Facebook’s cost-per-thousand impressions (CPM) increased by 58 percent between Q2 2011 and Q2 2012. This means that Facebook’s ads are working well enough that the company can keep charging more for them. Digging into the numbers, Germany had the largest CPM increase at 31 percent quarter over quarter, the U.S. had a 25 percent increase, Canada had a 21 percent increase, and the U.K. had a 7 percent increase.
- Twitter recently rolled out an enhancement to its Promoted Tweets paid ad service that enables marketers to target a subset of consumers, Internet Retailer reports. The microblogging service previously required a marketer to initially tweet to all its consumers, then target it at a specific customer base. However, that was impractical if the post was specifically focused on a single market like New York, for example.
- “What if you want to make an offer just to New York Twitter users?” wrote Kevin Weil, Twitter’s product manager in a blog post. “Until today, it’s been impractical to send these kinds of highly tailored tweets, since there was no way to reach people in New York without also reaching followers in Norway, Nebraska and Nigeria who can’t take advantage of your offer. Today we’re introducing targeted tweets, an enhancement that enables brands to reach specific audiences on Twitter without first sending a tweet to all followers.”
- Promoted Tweets appear in a consumer’s timeline like any other tweet. Like a regular tweet, the messages will appear in the timeline once; as the shopper scrolls, the Promoted Tweet flows with the rest of the tweets in the timeline. Advertisers can now post a Promoted Tweet based on a consumer’s location, device or platform, such as iOs, which would enable a message to be seen only by users of Apple Inc.’s mobile devices.
Tablets and Smartphones Drive Engagement, Ad Response
- Media Post reports that consumers are more responsive to ads on tablets than smartphones, but both devices are driving high levels of engagement with advertising and media, according to a new study by the Interactive Advertising Bureau. The research found nearly half (47%) of tablet owners and a quarter of smartphone users interact with ads on their devices at least once a week.
- The vast majority that clicked on ads was likely to take some action, including receiving a coupon (51%), research a product (49%) or making a purchase (46%). After coupons, ads featuring specific product searching, favorite brands, and location information were most likely to entice smartphone users to interact with them. When it comes to mobile platforms, the study found iOS users trumped Android device owners in ad responsiveness. People using iPhones and iPads were more likely to make a purchase than Android-based users.
- The findings were based on a survey conducted by ABI Research of 552 U.S. adults who use a smartphone with data service at least once a week, and 563 corresponding tablet users. The sample was split evenly by gender and covered those18 to 65+. The study also emphasized that mobile no longer means merely “on-the-go,” with virtually all tablet and smartphone owners using their devices at home—the most common place for mobile activity. Tablets are viewed mainly as media consumption devices; smartphones are considered “mission-critical” tools that 70% won’t leave home without.