or Connect
AppleInsider › Forums › Mobile › iPhone › Facebook advertisers see 1,790% higher returns on iOS than Android
New Posts  All Forums:Forum Nav:

Facebook advertisers see 1,790% higher returns on iOS than Android

post #1 of 123
Thread Starter 
Advertisements on iOS devices produced returns more than an order of magnitude higher than those on their Android counterparts, according to a new study by major social marketing company Nanigans.

iOS brings much greater advertising ROI than Android
Source: Nanigans


The study, first reported by VentureBeat, tracked more than 200 billion Facebook advertisements from over 100 advertisers on Nanigans' platform through the first nine months of 2013. Nanigans is one of the world's largest buyers of advertising on Facebook.

According to the report, it costs only a slight premium to place Facebook ads on iOS devices --?$4.99 per thousand impressions (CPM) versus $4.87 for Android. Average cost per click (CPC), or the amount an advertiser pays when a user clicks on one of those ad impressions, is wildly more disparate, however. Advertisers pay $0.18 per click on Android against $0.40 per click on iOS.

That disparity continues on the revenue side of the equation, the report says. Revenue per click (RPC) is pegged at 6 times higher on iOS, while return on investment (ROI) is 18 times higher.

Despite the low CPM and CPC numbers, advertising on Android actually yields negative ROI --?it costs advertisers more money to place the ads than they make, to the tune of a 10 percent loss, according to the report. iOS advertisements, meanwhile, bring healthy returns of more than 160 percent.

"Audiences cost more on iPhone, and the reason is that it's worth it," Nanigans SVP Dan Slagen said. "Typically, we're not looking to acquire one-time customers, we're looking to invest over time...so we pay more up front for better long-term results."
post #2 of 123
Android users don't spend money on anything other than their collection of phones with outdated OS's. /s
post #3 of 123

LOL.

 

Advertising ROI, web use, income levels, ecosystem, security, smoothness of operation, lack of fragmentation, style,...... (I am sure there's a dozen more).

 

At what point do these silly androids stop being such sheep!?

post #4 of 123

BAHAHAHAHAHAHA!!!

But...but...but... Android has 80% marketshare!!  How can that be??!!

But...but...but... Android has 27 gazillion activations per day??!!!

But...but...but... Nike is missing out on millions of Android consumers by not creating Android app for their wristband!!!

But...but...but.... *deep exhale* BAHAHAHAHAHAHAHAHAHAHAHAHA!!!

Time and time again, the money is in iOS.  The majority (99%) of Android users are folks that don't care what OS is on the cheap, free, garbage phone.

This just cracks me up.  I'm so waiting to see how Fandroids try to spin this article.  Waiting for them to resort to name-calling since they just can't come up with anything worth debating.

** collapsed from getting lightheaded **

post #5 of 123
at first I read it as 1.790% and than I saw the comma - holy crap.
post #6 of 123
Quote:
Originally Posted by drblank View Post
Android users don't spend money on anything other than their collection of phones with outdated OS's. /s

 

 The few android users I know, bought android because the (very out of date) android phone was cheapest up front (the down payment was lowest).

 

Not surprising the large number of users buying android because it was little or nothing up front, don't buy much based on android advertising.

post #7 of 123
There have been many studies done on iOS and Android customers. This is just another one that verifies the opinion that Android buyers, by in large, are very poor customers. They are cheap, basically. They prefer free apps to purchased ones and don't respond to in-app purchases nearly as well. And they pirate apps like nobody's business. And now we find that even with targeted ads, they are poor customers there too.

There was an article on CNet today blasting Nike for not making their new Fitband compatible with Android. Given studies like this and others, can you blame them?
post #8 of 123

ROFLMAO  :D

 

On a serious note, is there anyone surprised? How about Larry and The L Team @ google?!!

 

Each and every android user I've ever met, is one dumb cheap guy who downloads anything and EVERYTHING as long as it's FREE!

....the lack of properly optimized apps is one of the reasons "why the experience on Android tablets is so crappy".

Tim Cook ~ The Wall Street Journal - February 7, 2014

Inside Google! 

Reply

....the lack of properly optimized apps is one of the reasons "why the experience on Android tablets is so crappy".

Tim Cook ~ The Wall Street Journal - February 7, 2014

Inside Google! 

Reply
post #9 of 123
I read a comment on another site that said maybe Android users are more discerning....

BWAHAHAAHA!!
post #10 of 123
Quote:
Originally Posted by JoshA View Post
 

 

 The few android users I know, bought android because the (very out of date) android phone was cheapest up front (the down payment was lowest).

 

Not surprising the large number of users buying android because it was little or nothing up front, don't buy much based on android advertising.


I come across that as well with folks I know that bought their Android phones.  Most had the same line: "It was the cheapest phone they had".  Even with iPhones going for as low as $49, it doesn't matter... cheap or free will always prevail with these people.

That doesn't even bother me.  What's really shameful are the Android fanboys here and in other forums that continue ripping on any product/app that doesn't support Android and preaching to the world "These <insert smart companies here> are missing out on 'millions' of Android customers by not making it work on Android" bull$h!t.

Simple truth.  The majority of Android users don't spend money.  I lost track of how many times I've read the exact same metrics over the years.  Fandroids know it, but don't want to acknowledge it.

Fandroids will simply say that "Well, Android users are smart with their money" or "iOS users are just a bunch of rich trust-fund kiddies that like wasting money", or the typical name-calling that they are so good at doing since they have no valid argument to debate with.

This just cracks me up.

post #11 of 123
Quote:
Originally Posted by Sevenfeet View Post

There was an article on CNet today blasting Nike for not making their new Fitband compatible with Android. Given studies like this and others, can you blame them?


Apparently, when Nike first released the Fitband v1.0, they did have an Android app for it.  Nike abandoned it after that and that enraged the fandroid tech forums.  I guess Nike felt that the ROI on developing for Android was not worth the effort, but tell that to the roid-raged fandroids.  They just refuse to acknowledge that it's just not worth the effort to support such a botched, crappy system where the majority of the users wouldn't even buy Nike's product!

But no... fandroids just continue to sip their own tainted brand of kool-aid while living in their own reality-distortion-field.

post #12 of 123
I'm not familiar with Android, but is it possible ad blockers have to do with this? (I am assuming Android has ad blockers as Windows does)
post #13 of 123
"the challenge is the same that Android has faced for years: a lower-end audience.
Brutally put, iPhone owners simply tend to both make more money and spend more money than Android owners."

Android is popular because it's cheap, not because it's better. It is funny how a company that makes profits from hardware generates more money in advertising than a company that uses ads as its primary revenue stream. All without the help of Facebook Home too.

Usually you find with the strong open source advocates that there is a tendency to not want to pay for things. Google steals IP and doesn't think they need to pay, Android buyers don't mind the companies they buy products from ripping off IP as long as they can get the next best thing at a lower price and the users like having fewer restrictions to be able to steal software:

http://www.cultofandroid.com/27547/android-piracy-outnumbers-ios-piracy-by-141-driving-devs-to-freemium-only-model/

I'm sure a lot of desktop users block ads so it's expected that Android users would do the same but even that took an interesting twist:

https://www.eff.org/deeplinks/2013/03/google-censoring-android-apps

They'll give as much openness and freedom until it harms their revenue stream.
post #14 of 123
Android users seem to fall into 4 camps:

- those who want the cheapest
- those who want a large screen
- power users who want total control
- young people using product affiliation in an effort to assert their identity

The only one of those camps that Apple should be concerned with is the people who want a large screen, because they have money. The rest are either budget consumers who buy products with thin margins, geeks who represent a tight niche, or HS/college students who usually don't hold the purse strings.

Apple has a very good sense for where the money is, but they also take their jolly sweet time bringing new products to market. I have concerns with their brand perception due to the very large interval we're experiencing between what I see as market validation of larger screened phones and Apple delivering a product that can compete on those terms. Otherwise, I think the new phones are quite attractive. I have no need for such a large phone, but I meet plenty of folks who do have such a need.

I hope those needs are addressed sooner rather than later.
post #15 of 123

Wow! :)

post #16 of 123
Quote:
Originally Posted by Gordio View Post

I'm not familiar with Android, but is it possible ad blockers have to do with this? (I am assuming Android has ad blockers as Windows does)

Not likely. I don't use the Facebook app so I can't speak for that but I do use an ad blocker. I use Facebook's mobile site when using it and it's setup in a way where you can't block their ads. I would assume the ads in their mobile app don't get blocked either.
post #17 of 123
Can they blame this on user-agent settings?

"Apple should pull the plug on the iPhone."

John C. Dvorak, 2007
Reply

"Apple should pull the plug on the iPhone."

John C. Dvorak, 2007
Reply
post #18 of 123
Quote:
Originally Posted by Gordio View Post

I'm not familiar with Android, but is it possible ad blockers have to do with this? (I am assuming Android has ad blockers as Windows does)

Google released Android. Google is an ad company. No ad blockers.

----

Of course iPhone gets more ads, Apple users are using toys while Android is for real work. Androiders don't have time to be on Facebook while they root their phones. /s
post #19 of 123
Quote:
Originally Posted by jungmark View Post


Google released Android. Google is an ad company. No ad blockers.

----

Of course iPhone gets more ads, Apple users are using toys while Android is for real work. Androiders don't have time to be on Facebook while they root their phones. /s

Incorrect. Google still allows ad blocking apps, they just don't bake it in any more. Check their Chrome store if you want to see. Additionally,  anyone that throws a ROM on their Android device usually has ad blocking built in. There is even specific ad blocking against social networks available to Android users, so you never even see those annoying +1 or "Like" buttons.  I always enjoy reading the comments on this site. Makes me giggle every time. Cheerio.

post #20 of 123
Quote:
Originally Posted by Suddenly Newton View Post

Can they blame this on user-agent settings?

Between UA, ad blocking, custom ROMs and Apple webkit, the short answer is: 'sort of'.

post #21 of 123
Quote:
Originally Posted by sflocal View Post


Apparently, when Nike first released the Fitband v1.0, they did have an Android app for it.  Nike abandoned it after that and that enraged the fandroid tech forums.  I guess Nike felt that the ROI on developing for Android was not worth the effort, but tell that to the roid-raged fandroids.  They just refuse to acknowledge that it's just not worth the effort to support such a botched, crappy system where the majority of the users wouldn't even buy Nike's product!


But no... fandroids just continue to sip their own tainted brand of kool-aid while living in their own reality-distortion-field.

It does seem reasonable to assume the typical Android user would buy some cheap knock off from South Korea rather than genuine Nike product.
From Apple ][ - to new Mac Pro I've used them all.
Long on AAPL so biased
"Google doesn't sell you anything, they just sell you!"
Reply
From Apple ][ - to new Mac Pro I've used them all.
Long on AAPL so biased
"Google doesn't sell you anything, they just sell you!"
Reply
post #22 of 123
"...advertisers see 1,790% higher returns on iOS than Android"

One has to wonder if many Androids actually have internet accounts! Or are most of them used to walk around with pretending they do? I mean, after all, there are a trillion sold per day. 1rolleyes.gif
From Apple ][ - to new Mac Pro I've used them all.
Long on AAPL so biased
"Google doesn't sell you anything, they just sell you!"
Reply
From Apple ][ - to new Mac Pro I've used them all.
Long on AAPL so biased
"Google doesn't sell you anything, they just sell you!"
Reply
post #23 of 123

Why would this be surprising? Most Android users are not 'smart phone' users. That is not a degradation towards them, but the fact that most of the Android market is 'Feature-Smart' where people want mostly just a phone, but opt for the larger screen. Price point, Android wins. For those wanting a Smart Phone to use as a smart phone was intended, buys Apple for the most part. 

 

Cheap phones will [probably] always be the vast majority, simply because most people just want a phone to make calls, text, and perhaps share photos. It will take another couple (2-3) generations before computing is done handheld by the masses. 

post #24 of 123
Quote:
Originally Posted by Lloydbm4 View Post
 

Between UA, ad blocking, custom ROMs and Apple webkit, the short answer is: 'sort of'.

 

Whew! I was worried there for a moment that Apple was relevant.

"Apple should pull the plug on the iPhone."

John C. Dvorak, 2007
Reply

"Apple should pull the plug on the iPhone."

John C. Dvorak, 2007
Reply
post #25 of 123
Quote:
Originally Posted by Suddenly Newton View Post

Whew! I was worried there for a moment that Apple was relevant.
Apple is relevant. Never said otherwise. It is just much simpler to get analytics from iDevices.
post #26 of 123
First, seriously? Someone actually clicks on stupid Facebook ads? iOS users click on them like they've got the antidote or something. That's what needs to get answered: Why the F are they clicking on stupid Facebook ads in the first place?
post #27 of 123

Slight math correction for the author:  One order of magnitude means 10x.  Two orders of magnitude means 100x.  While the ~18x is certainly a very, very impressive number, it is not even close to being "nearly two orders of magnitude higher".  When I see this type of error in the mainstream media (especially prevalent on CNN) I usually just ignore it.  But I've come to respect some of the in-depth reporting from this site, so it pains me to see it here.  Hopefully this comment is construed as helpful as opposed to snarky.  Cheers!

post #28 of 123
Quote:
Originally Posted by Lloydbm4 View Post

Incorrect. Google still allows ad blocking apps, they just don't bake it in any more. Check their Chrome store if you want to see. Additionally,  anyone that throws a ROM on their Android device usually has ad blocking built in. There is even specific ad blocking against social networks available to Android users, so you never even see those annoying +1 or "Like" buttons.  I always enjoy reading the comments on this site. Makes me giggle every time. Cheerio.

Spin in all you like but the average Fandroid doesn't install ad blockers or adds a custom ROM.
Quote:
Originally Posted by Lloydbm4 View Post

I would love to know where you get this kind of bogus info?

Nike had the SDK and API ready for distribution last summer. Tim Cook is on Nike's board of directors. Guess who nixed the API in favor of Apple exclusivity? Take a wild guess.

Thats a good one. So Andrea Jung is on Apple's board so I guess Avon used to get exclusive beauty apps on the iPhone.

I didn't know Nike only had one board member and the CEO of Nike can't make a decision on his own.
post #29 of 123
Quote:
Originally Posted by jungmark View Post

the average Fandroid doesn't install ad blockers or adds a custom ROM.

 

This is true.  Any ad blocker worth using on Android has always required root access and most users don't root their phones. 

 

However, in this thread the discussion of using ad blockers is largely irrelevant as ad blockers like AdAway (by far the most popular) don't block Facebook's ads.

post #30 of 123
Quote:
Originally Posted by DroidFTW View Post

However, in this thread the discussion of using ad blockers is largely irrelevant as ad blockers like AdAway (by far the most popular) don't block Facebook's ads.

That's what I was wondering.

They're talking about ads inside the Facebook app, right?

If so... then ad blockers wouldn't factor into that at all.
post #31 of 123
Quote:
Originally Posted by TheRealCBONE View Post

First, seriously? Someone actually clicks on stupid Facebook ads? iOS users click on them like they've got the antidote or something. That's what needs to get answered: Why the F are they clicking on stupid Facebook ads in the first place?

And why are all the Facebook haters actually bragging about this information? I actually find it troublesome.
"Few things are harder to put up with than the annoyance of a good example" Mark Twain
"Just because something is deemed the law doesn't make it just" - SolipsismX
Reply
"Few things are harder to put up with than the annoyance of a good example" Mark Twain
"Just because something is deemed the law doesn't make it just" - SolipsismX
Reply
post #32 of 123
Quote:
Originally Posted by Michael Scrip View Post

That's what I was wondering.

They're talking about ads inside the Facebook app, right?

If so... then ad blockers wouldn't factor into that at all.

Yes they would, ad blockers can block in-app ads.
"Few things are harder to put up with than the annoyance of a good example" Mark Twain
"Just because something is deemed the law doesn't make it just" - SolipsismX
Reply
"Few things are harder to put up with than the annoyance of a good example" Mark Twain
"Just because something is deemed the law doesn't make it just" - SolipsismX
Reply
post #33 of 123
Quote:
Originally Posted by jungmark View Post
Thats a good one. So Andrea Jung is on Apple's board so I guess Avon used to get exclusive beauty apps on the iPhone.

I didn't know Nike only had one board member and the CEO of Nike can't make a decision on his own.

Do you really believe that he couldn't influence the other board members or CEO in any mutually beneficial way, or that Nike stayed iOS only out of the goodness of their hearts and their love for all things Apple?

post #34 of 123
Quote:
Originally Posted by Michael Scrip View Post


That's what I was wondering.

They're talking about ads inside the Facebook app, right?

If so... then ad blockers wouldn't factor into that at all.

 

Quote:
Originally Posted by dasanman69 View Post


Yes they would, ad blockers can block in-app ads.

 

Android ad blockers don't block Facebook ads on the mobile site.  I'd imagine the same applies for ads in the Facebook app as well.  While Android ad blockers can block both in-app ads and ads on mobile sites, Facebook is currently a bit of an exception to this rule.  Facebook ads show up in your news feed and straight from Facebook.  If Facebook were to use a common ad service then the ads would be blocked.  Instead, Facebook IS the ad service.  Android ad blockers work by keeping a blacklist in the hosts file.  To add Facebook to that list would block all access to Facebook.

post #35 of 123
Quote:
Originally Posted by TheRealCBONE View Post

First, seriously? Someone actually clicks on stupid Facebook ads? iOS users click on them like they've got the antidote or something. That's what needs to get answered: Why the F are they clicking on stupid Facebook ads in the first place?

Perhaps because they are higher income folks, therefore have a greater opportunity cost of time, therefore are quite happy to waste less time searching for stuff they want/need if an ad server system is smart enough to put something in front of them that they want/need?

 

In other words, Androiders -- assuming they even get the web, which they don't seem to all that much compared to iOS users -- are poorer, have less to do, and are therefore more willing to waste a lot of time searching for the cheapest stuff on the web.

post #36 of 123
Quote:
Originally Posted by anantksundaram View Post
 

Perhaps because they are higher income folks, therefore have a greater opportunity cost of time, therefore are quite happy to waste less time searching for stuff they want/need if an ad server system is smart enough to put something in front of them that they want/need?

 

In other words, Androiders -- assuming they even get the web, which they don't seem to all that much compared to iOS users -- are poorer, have less to do, and are therefore more willing to waste a lot of time searching for the cheapest stuff on the web.

 

Wow. That was pitiful.

post #37 of 123
Quote:
Originally Posted by TheRealCBONE View Post

Wow. That was pitiful.

Of course it was. Android types are, indeed, pitiful.

Let me add to my prior explanation. The results reported here are based on Facebook, which, even though global, gets only a tiny portion of its ad revenue from poor countries. As you know, it's in those countries -- e.g., India, China (and I am not making a value judgement here) -- that Android dominates.

Now, connect the dots. 1cool.gif
post #38 of 123
Quote:
Originally Posted by Richard Getz View Post

Why would this be surprising? Most Android users are not 'smart phone' users. That is not a degradation towards them, but the fact that most of the Android market is 'Feature-Smart' where people want mostly just a phone, but opt for the larger screen. Price point, Android wins. For those wanting a Smart Phone to use as a smart phone was intended, buys Apple for the most part. 

Cheap phones will [probably] always be the vast majority, simply because most people just want a phone to make calls, text, and perhaps share photos. It will take another couple (2-3) generations before computing is done handheld by the masses. 

This is something that people tend to forget.

There is so much time spent talking about flagship Android phone like the Galaxy S4 and Galaxy Note 3... but "Android" is also made up of TONS of cheaper, less-than-desirable phones around the world. Phone that don't see a lot of use beyond voice and texting.

Someone buys a phone for $80 off-contract... and it happens to be running Android. That's how it goes. We don't talk about those phones... we only talk about the flagships.

There were 177 million Android smartphones sold last quarter.... how many of them were flagship? Or even moderately decent phones?

Or like you said... how many of them are being used as smartphones? How many are only used for voice and texting?
post #39 of 123
Quote:
Originally Posted by TheRealCBONE View Post

First, seriously? Someone actually clicks on stupid Facebook ads? iOS users click on them like they've got the antidote or something. That's what needs to get answered: Why the F are they clicking on stupid Facebook ads in the first place?
+1
Every Google hater claims android is all about advertising, yet apples users click on more ads?
Something smells here.
Who here has ever clicked on taking fb ad? I for one never have.

I just checked fb on my android phone, one suggested post every 20-60 regular posts and easily discernable as ads. Maybe ios fb
has a lot more ads and people are clicking on them by mistake?

Also consider a lot of Android users may be using Google plus instead of fb.
Edited by patpatpat - 10/16/13 at 7:56pm
post #40 of 123
Quote:
Originally Posted by Michael Scrip View Post

There were 177 million Android smartphones sold last quarter.... how many of them were flagship? Or even moderately decent phones?

Or like you said... how many of them are being used as smartphones? How many are only used for voice and texting?

Great question.

 

Recent evidence would suggest that 90% are low-end devices. (I am too lazy to give you a cite, tbh; it was widely publicized, so I am sure you can look it up).

New Posts  All Forums:Forum Nav:
  Return Home
  Back to Forum: iPhone
AppleInsider › Forums › Mobile › iPhone › Facebook advertisers see 1,790% higher returns on iOS than Android