According to Business Insider, Twitter and Facebook are now earning 50% of their advertising revenue from mobile phones. Facebook took 11% of its ad revenue from mobile last year and 23% in the fourth quarter.
Naturally, BI is expecting these numbers to increase. So am I.
What is driving this increase? Native advertising. Not traditional PPC.
Native advertising is advertising that appears in the news feed of Facebook and Twitter users. It’s not something they are looking for, but it appears there based on what they normally tweet or post about on Facebook. It’s a combination of targeted demographic marketing and affinity marketing. And it seems to be working.
With this kind of powerful marketing available to them, online paid advertisers are sure to invest more into the advertising that is effective for them.
Social media advertising provides one advantage over traditional PPC. With Google AdWords, you only reach people who are searching for information related to your offering based on keywords you enter. With social media advertising, you choose the demographic you want to target. It’s more like traditional advertising, putting control back into the hands of advertisers.
Naturally, there’s no perfect advertising medium, but social media advertising represents the best of two optimal worlds. You can target your ads to a demographic you know and you can take advantage of the social media opportunity. Combine them for one great opportunity.