According to a new study by major social marketing company, Nanigans, advertisements on iOS devices produced returns nearly two orders of magnitude higher than those on their Android counterparts. The study tracked more than 200 billion Facebook ads from over 100 advertisers on Nanigans’ platform through the first nine months of 2013. For those of you who didn’t know, Nanigans is one of the world’s largest buyers of advertising on Facebook.
Based on the report, it only costs a slight premium to place Facebook ads on iOS devices with the price difference being $4.99 per thousand impressions (CPM) on iOS versus $4.87 for Android. Average cost per click (CPC), or the amount an advertiser pays when a user clicks on one of those ads, seems to be wildly more disparate however. Advertisers seem to pay $0.18 per click on Android against $0.40 per click on iOS.
That disparity continues on the revenue side of the equation according to the report. Revenue per click seems to be pegged at 6 times higher on iOS while the return of investment is 18 times is 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% loss, according to the report. Advertisements on iOS meanwhile bring healthy returns of more than 160%.
Nanigan's SVP Dan Slagen had the following to say regarding the matter:
Audiences cost more on iPhone, and the reason is that it's worth it. 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.