Advertisers take heed: targeting ad campaigns toward iOS might yield better results than targeting Android users. A study reveals that the return on investment on iOS-directed ads is much, much better.
Social networking has gone beyond simple messaging, photo sharing and connections. With Facebook being a huge data mine of user preferences and information, businesses have started to capitalize on social networks like Facebook, Twitter, Foursquare and — recently — Instagram, to deliver their marketing campaigns to the right audience. This includes sponsored stories, links and location-based marketing campaigns that users receive depending on their preferences and context.
Studies that have analyzed the differences among platforms have often determined that some platforms perform better than others in terms of profitability. For instance, while Android users are more numerous nominally, developers earn more from each iOS user on average, when it comes to in-app purchases and premium app downloads.
The same can be said for advertising, as determined by a recent study by Nanigans, one of the biggest buyer of Facebook ads. The study took into account more than 200 billion ads that have run on Facebook, and has determined that the return on investment (RoI) from iOS-targeted ads is 1,790 percent greater than the RoI from Android-targeted ads.
“Retailers are realizing significantly greater return from audiences on iOS than audiences on Android,” reports Nanigans. “For the first three quarters of 2013, revenue per click on iOS averaged 6.1 times higher than Android and ROI on iOS averaged 17.9 times higher than Android.”
The Nanigans study did not go deeper into the reasons why Facebook ads are much more effective on iOS users than Android. However, this brings into light the so-called Android engagement paradox, which explains how differences in devices result in the lack of interaction and engagement among Android users.
True enough, Android devices do encompass both the low-end of the price and specs spectrum to expensive premium devices. This means not everyone gets the same level of user experience on their device. Users with cheap phones are likely to use their devices differently from those using expensive phones and phablets. In contrast, usage patterns and experiences are more homogenized on iOS devices.
The Nanigans study goes on to determine the average cost of advertising on both platforms, and found out that cost-per-impression (CPM) on both platforms are not too far part ($4.87 for Android and $4.99 on iOS). However, given that RoI on Android devices is significantly lower, it turns out that advertising on Android devices is more expensive compared with running campaigns for iOS.
Source: Venture Beat