Over half of Facebook users (543 million people worldwide) access the site on Mobile

102 mi l l ion peop le accessed Facebook solely from mobile in June 2012

Facebook generates over $500,000 per day on Mobile advertising

Click through rates on Facebook Mobile Sponsored Stories outperform traditional ads by 15-25x

Up to 100% of available screen real estate

Social Context

Which of your friends engaged with the content

Hyper-Relevant Content Combine with precise Age, Gender, Location and Interest-based targeting

Large Format

Prominent Call to Action

Sponsored Story Distribution: Friends of Fans/Users

Page Post Ad Distribution: Fans/Users + their Friends

O p e n G r a p h Sponsored Story Distribution: Friends of Users

Optimal saw powerful mobile results in June 2012 with average clickthrough rates over 1.9% and effective CPMs to Facebook of over $11.00 (a 32-fold premium over the average for non-mobile).

Optimal analyzed over 20 billion US Facebook (non-mobi le) impressions in the first two quarters of 2012. We found a 32% increase in cost per click from Q1 to Q2, 2012, combined with a 23% drop in clickthrough rate (due to more ads per page being shown) which led to a small 1.6% increase in effective CPM.

Your Mileage May Vary: Early testing shows large differences in performance by device/platform as shown here. Android significantly outperformed iPhone (mostly iOS 5). New and better integrations between Facebook and iPhone will mean better performance for advertisers. Apple and Facebook relationship could be pivotal…

iPhone users are more affluent, slightly more female and tend to live in bigger cities/DMAs. Android users text and speak on the phone more than iPhone users who use their data plans more.

Only content eligible for “organic” distribution can be sponsored as Mobile ads

Advertisers must own a Facebook Page or Open Graph-enabled Application

Mobile distribution is currently limited to the Advertiser’s Page Fans/App Users and their Friends

Open Graph Sponsored Stories (e.g. “Your Friend listened to X.”) must be timely and expire after 14 days.

The Facebook Open Graph is a massive "web" of stories about users performing specific actions on Facebook or through an Open Graph-enabled application

Open Graph-enabled applications will lead to the most engaging ad formats:

Facebook’s Open Graph is going to deliver far more relevant messages to consumers given the specificity of the actions embedded therein + location means mobile becomes truly a valuable channel for marketers

June 2012 – Began targeting ads to Facebook users on 3rd party sites (Zynga.com), launched Facebook Exchange (FBX) to retarget visitors to 3rd party sites on Facebook desktop site

543 million monthly active users on mobile, with 80% mobile user penetration in the US (comScore) – with better data on Age, Gender, and location than any other source

Mobile publisher monetization is very weak currently as mobile usage increases

With deeper integration into iOS, Facebook’s Open Graph action framework may provide more accurate conversion tracking for advertisers

Facebook has the most non-intent audience data today User-supplied location combined with user real-time

location will be a powerful platform for coupons and offers Facebook’s Open Graph framework will generate a good

deal of short- and long-term intent data

The future of mobile user data is between Facebook vs. Google

Rank Largest TV Advertisers Q1 2012 TV Ad Spend Optimal Index Rank* 1 Ford Motor Co Dlr Assn $ 91,419,000 316 2 Toyota Motor Corp Dlr Assn $ 77,135,000 511 3 Chrysler Group Llc $ 74,630,000 1006 4 Comcast Corp $ 73,419,000 -- 5 General Mills Inc $ 67,280,000 -- 6 Honda Motor Co Ltd $ 60,423,000 849 7 McDonalds Corp $ 48,151,000 27 8 AT&T Inc $ 46,751,000 132 9 Nissan Motor Co Ltd $ 44,142,000 561 10 Time Warner Cable Inc $ 43,784,000 425 11 Verizon Communications Inc $ 41,242,000 92 12 Hyundai Corp Dlr Assn $ 38,062,000 325 13 General Motors Corp $ 37,812,000 834 14 General Motors Corp Dlr Assn $ 35,442,000 834 15 Toyota Motor Corp Loc Dlr $ 31,328,000 511

*The Optimal Index is a transparent and independent audience valuation tool used by consumers, marketers and agencies. Updated daily, the Index Rank considers fan counts, engagement ratios, and global fan distribution in determination of the relative value of each brand's audience on Facebook.

Facebook applications and pages with deep existing penetration provide the linkage and start of an ad ecosystem

Integration and penetration of Facebook’s app on mobile devices mean better data/ad opportunities – iOS6 native support is huge

Built-in developer base is going to create Open Graph applications which are Facebook’s big hope for connecting actions across channels– but there is still much work to be done

Mobile ad network would be a wildcard but certainly possilbe. Apps like Instagram are great places to start (owned or not!)