With 488 million users accessing Facebook on mobile devices, and with mobile ad click-through rates 14 times higher than desktop ads, the social network has potential in the mobile sphere. But it will need to revise its Wi-Fi strategy to stay relevant.
Moolah Media conducted a study across thousands of campaigns, finding ads served to users over Wi-Fi performed significantly worse than those delivered over wireless networks.
As Wi-Fi is expected to represent 51 percent of all Web traffic by 2016, this presents a problem for Facebook.
“A mobile user’s carrier reveals a lot about who they are and how they might interact with an ad — information that’s essential for an ad to reach its target audience and to ultimately be profitable,” AllThingsD explains.
“Wi-Fi is a growing barrier to the success of mobile ads,” suggest the article. “And Wi-Fi isn’t the only issue: third-party browsers also hide the device type, and since they use proxy IPs, they often conceal the country location of the user as well — which makes it impossible to accurately target relevant ads, and results in massive losses for mobile advertisers.”
Even so, Facebook has the ability to combat this issue with its expansive data voluntarily provided by users. “And in addition to information explicitly provided on Facebook, the social network recently announced that it will be looking at how mobile users interact with other apps in order to deliver ads more efficiently,” the article notes.
“Facebook has the power to create targeted market segments, ones that are significantly more focused than just carrier name. And the now-public social network also has the resources to focus on post-click actions and backend quality — the unseen aspects of mobile advertising that truly matter to advertisers and can generate real profits,” AllThingsD concludes.
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