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iPhone Trumps Android in Mobile Ad ROI

google nexus android smartphones
Left to right, the Google Nexus One, Nexus S, Galaxy Nexus and Nexus 4 Android smartphones. / Credit: Android Open Source Project/Creative Commons

When it comes to mobile advertising, the iPhone gives your small business the best bang for its buck by far.

A new study reveals that mobile ads on iPhone generate 1,790 percent greater return on investment than the same ads on Android phones.

The study includes a review of the performance of more than 200 million ads on Facebook, with a focus on e-retailers. It was conducted by Nanigans, one of the biggest buyers of Facebook ads.

“Retailers are realizing significantly greater return from audiences on iOSthan audiences on Android,” the report states. “For the first three quarters of 2013, RPC [revenue per click] on iOS averaged 6.1 times higher than Android and ROI [return on investment] on iOS averaged 17.9 times higher than Android.”

As Business Insider points out, the finding also means that small businesses building a mobile shopping app would be wasting time – and money -- by building it for any platform but the iPhone.

Android ads don’t just monetize worse than iPhone – they actually lose money, according to the study. Advertising on iOS return about 162 percent more money than the initial investment, while Android ads actually cost 10 percent more than they return.

Analysts speculate the study reveals divergent audiences between the two mobile platforms. On the whole, iPhone users tend make – and in turn, spend – more money than Android users.

More to the point, iPhone owners actually use their phones to shop.

The gap persists despite Android’s sizeable worldwide lead in mobile market share.

The report also points out that there’s little difference between the cost of advertising on Android and iOS. The cost per thousand impressions is $4.99 for iPhone and $4.87 for Android.

Brett Nuckles

Brett Nuckles has been a working journalist since 2009. He got his start in local newspapers covering community news, local government, education and more before he joined the Business News Daily staff in 2013. He graduated from Ohio University, where he studied Journalism and English. Follow him on Twitter @BrettNuckles.