Adweek seemed surprised this week to report two findings — a whopping share of Facebook and Google ads are now being served on mobile, and yet for some reason, both lag behind desktop ads in conversion rates (the % of people who click on an ad who end up completing the desired action, such as filling out a lead form). So let’s break this down:
1. First, both Google and Facebook have much lower conversion rates on mobile than on desktops. Marin Software monitored $6 billion in ads, or about 3 billion ad clicks, and found that while Facebook received 63% of all ad clicks on smartphones and tablets, only 34% of its conversions happened there. Google did a little better, with 39% of all paid search clicks being on mobile and 31% of all purchases made there.
2. Should mobile marketers panic? Well, no. Duh. Mobile devices have small screens and awkward touch keypads, so conversion will be lower, of course. Have you ever tried filling out a web lead form or typing in credit card information on an iPhone? So the overall trend will be for consumers to explore ad information, if interested, on mobile, but then convert on desktops (or even by telephone or physical store) later. This explains why Facebook mobile ads have only a 0.3% conversion rate vs. its desktop ads converting on average at 1.1%.
3. Now, within this race, why did Google still outperform Facebook on mobile conversions? Modality. Google search ads are triggered by consumers who instigate a search for a particular product, so they are already leaning toward conversion. If you punch in “airline tickets to Florida” on your iPhone, odds are you may be thinking of making a travel purchase. Facebook ads, instead, are pushed out to target consumers who have expressed no immediate interest in buying the product — so even if they click, their mode may be one of cursory exploration vs. immediate consumption.
All of this is to say that mobile ads can work very well in reaching audiences with information about a product; marketers should also take heart that most conversions happen subsequently across different channels. 100% of television ads, for instance, have conversions elsewhere — web, phone, retail store visit — because no one buys anything by clicking on a TV ad. (You can’t.) Imagine the histrionic Adweek headline: “U.S. marketers spend $70 billion annually on TV with a 0% response rate! Why aren’t there conversions?” Um, yeah.
Break out the regression analysis
The real solution to cross-channel mobile is to use multichannel measurement, evaluating the responses from a cumulative mix of digital or traditional advertising media. (We do this for clients with a mix of software and statistical regression analysis*; it’s quite fun.) The real story may be those early ads on Facebook spark interest that bring people in to Google search later, just as a TV campaign can build lift across physical stores. All ads are connected. The data trails between them are complex, but can be measured.
So keep making mobile impressions, marketers. Your spouse didn’t marry you after your first impression. This is not to say that first impressions don’t count.
* If you are new to stats, “regression analysis” sounds complicated but the concept is simple: It models relationships between variables, such as X television schedule and Y Google searches, to find with relative certainty how they are connected. (Imagine you go out partying and the next morning have a wicked headache. If you model this with enough parties over a year, you could say with relative certainty: partying in fact does cause headaches.) Regression analysis is useful in evaluating how different, unconnected media tactics — and outside events, such as major winter storms or competitor behavior — work together to influence responses to ad campaigns. Without this type of analysis, you might make a mistake of shutting off one media channel, such as TV, which in reality could be driving thousands of customers in elsewhere in your marketing ecosystem.