Doubling Your ROAS With Direct Response Mobile Ads

by Sandra Rand 3 years ago

Welcome to part three of our four part series on the how the revolution will be mobilized. 

If you’re reading this, chances are you are somehow involved in the ad-buying decisions for your company.

Let us share how mobile ads can make you bank. 

MOBILE AD REVENUE IS MAKING IT RAIN

Last year, mobile ad spend in general walloped the previous year by increasing 66%. In 2014, the mobile ad spend was a mere $12.5 billion, and clocked in at $20.7 billion in 2015.

Even the analysts didn’t predict this rapid rise in mobile ad revenue; the final number was a full 33% higher than the original estimate of $15.5 billion.

FACEBOOK’S FIRE IS BEING FUELED BY MOBILE ADS

If you were living under a rock two weeks ago and somehow managed to miss the media maelstrom that surrounded Facebook’s stellar earnings, you can get the full details here.

Where this news is relevant to us was because their mobile ad revenue was up a whopping 76% from last year. Even better, it also represented over 80% of Facebook’s entire ad revenue for the first quarter.

In terms of cold, hard cash, that equated to $4.265 billion that was spent on mobile ads on Facebook in Q1.

GOOGLE IS GAGA FOR MOBILE ADS

While it may not have received as much press as Facebook’s recent ad revenue, Google’s earnings are also holding strong. And most of that strength is grounded in (surprise!) mobile ad revenue.

In fact,  mobile ad revenue is powering Google’s overall ad revenue growth rate, where this revenue rose 4 times faster than their overall ad income.

MOBILE SEARCH CAUSES AD REVENUE TO SURGE

Even paid search basked in the upswing of mobile ad spending. It increased 13% year-on-year, and mobile ads accounted for 77% of that increase.

HIT ME WITH YOUR BEST SHOT

Whether or not you’re the one making the final decision on your direct response ad spend, let me serve you up some numbers from our own experience that proves mobile ads are the real deal.

In a recent campaign we ran with a video ad on both desktop and mobile, the numbers clearly favored mobile ads.

Segmenting out desktop versus mobile + Facebook Audience Network, we saw that the ROAS doubled from 104% to 209%. Even better, the CPA dropped a staggering 47% between desktop ads and mobile ads.

Doubling-ROAS-With-Direct-Response-Mobile-Ads-2

 

We have seen these same results repeatedly from a number of different clients.

Not only is mobile the wave of the future, but it’s also a fantastic way to run a cost-effective ad campaign.

FINAL THOUGHTS

To paraphrase Sheryl Sandberg, the COO of Facebook, now that “[c]onsumers have shifted to mobile,” it’s time for businesses to catch up.  

“[G]iven where consumers spend their time, the question now is not if [you] should market on mobile, but how.’”

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