“A 200-billion ad study on Facebook advertising says that mobile ads on iPhone generate 1790 percent more return on investment than ads on Android,” John Koetsier reports for VentureBeat. “Even worse [for those not named Apple], advertising on Android actually costs more than it returns.”
“The study is by Nanigans, one of the biggest buyers of Facebook ads, and it focuses on retailers, saying that in the past year on Facebook’s desktop ads clickthroughs are up 375 percent and overall return on investment is 152 percent,” Koetsier reports. “But it’s when the report focuses on mobile advertising that the really surprising numbers pop up.”
Koetsier reports, “‘Retailers are realizing significantly greater return from audiences on iOS than audiences on Android,’ the report says. ‘For the first three quarters of 2013, RPC (revenue per click) on iOS averaged 6.1 times higher than Android and ROI (return on investment) on iOS averaged 17.9 times higher than Android.'”
Read more in the full article here.
MacDailyNews Take: As we explained last year:
It’s the marketing, stupid.
Android is pushed to users who are, in general:
a) confused about why they should be choosing an iPhone over an inferior knockoff and therefore might be less prone to understand/explore their devices’ capabilities or trust their devices with credit card info for shopping; and/or
b) enticed with “Buy One Get One Free,” “Buy One, Get Two or More Free,” or similar offers.Neither type of customer is the cream of the crop when it comes to successful engagement or coveted demographics; closer to the bottom of the barrel than the top, in fact. Android can be widespread and still demographically inferior precisely because of the way in which and to whom Android devices are marketed. Unending BOGO promos attract a seemingly unending stream of cheapskate freetards just as inane, pointless TV commercials about robots or blasting holes in concrete walls attract meatheads and dullards, not exactly the best demographics unless you’re peddling muscle building powders or grease monkey overalls.
Google made a crucial mistake: They gave away Android to “partners” who pushed and continue to push the product into the hands of the exact opposite type of user that Google needs for Android to truly thrive. Hence, Android is a backwater of second-rate, or worse, app versions that are only downloaded when free or ad-supported – but the Android user is notoriously cheap, so the ads don’t sell for much because they don’t work very well. You’d have guessed that Google would have understood this, but you’d have guessed wrong.
Google built a platform that depends heavily on advertising support, but sold it to the very type of customer who’s the least likely to patronize ads.
iOS users are the ones who buy apps, so developers focus on iOS users. iOS users buy products, so accessory makers focus on iOS users. iOS users have money and the proven will to spend it, so vehicle makers focus on iOS users. Etcetera. Android can have the “Hee Haw” demographic. Apple doesn’t want it or need it; it’s far more trouble than it’s worth.
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Apple iOS dominates mobile video viewing with 60% share vs. Android’s 32% – February 13, 2013
Android’s Web share down 13% since November; Apple’s iOS now over 60% – February 1, 2013
IDC: Apple dominates worldwide tablet market with 43.6% unit share – January 31, 2013
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