CANNES, FRANCE — Bucking an industry trend, the price tag on Facebook's mobile ads are higher than those for its desktop ads, according to Carolyn Everson, Facebook's VP of global marketing solutions.
Everson says CMPs — the prices for ads to reach 1,000 customers — are higher on mobile than on desktop, though she declined to specify the difference. The higher costs for mobile may reflect the fact that right-hand column direct-response Marketplace ads that appear on Facebook desktop don't run on mobile. CPMs on mobile overall are $0.75 compared with $3.50 for desktop, according to a presentation from Wall Street analyst Mary Meeker in 2012.
Greg Stuart, the CEO of the Mobile Marketing Association, says he doesn't know of an official CPM figure and feels any number would be misleading, anyway. "There just isn't good benchmarking," he says. "And I'm not even sure it's a good question because at the same time you have people selling dollar inventory, you have other people selling $80 inventory. There's no such thing as an average CPM. It's a complicated concept for me."
Despite the seemingly good news about mobile ad pricing, Stuart acknowledges that the average marketer spends just 2% of her budget on mobile advertising. To help remedy this, the MMA recruited former Procter & Gamble CMO Jim Stengel to work on a pitch to marketers. The tagline: "Every moment is mobile."
Everson, a member of the MMA's executive committee, says that some of the resistance from marketers comes from the erroneous belief that geo-targeting is critical for effectiveness. "Some marketers still say 'I haven't gotten mobile right,'" she says. "And the translation is they want it to be location-specific, highly specialized and the example we've talked about for 10 years which is I walk by a Starbucks or a McDonald's and I get an offer. The truth is, forget all that fancy stuff. It might come, but what mobile is right now is a mass medium."
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