businessinsider.com
Facebook is set to announce an important new measurement
tool for advertisers that could help it take on Google and propel its position
even further up the mobile advertising market.
At its annual F8 developers conference that kicks off on
March 25, Facebook is set to announce a service that will enable brands to
determine whether an ad actually caused a person to download an app, according
to a report from The Information. The tool won't just be able to determine how
ads bought via Facebook performed, but ads served on other apps too.
Business Insider has contacted Facebook for comment and will
update if we hear back.
If Facebook manages to convince enough partners within the
mobile ecosystem to sign up (and that might be difficult initially as companies
like Google, Apple's iAd, Twitter are direct rivals in the mobile space and
will be unlikely to want to give Facebook a competitive advantage), this
announcement could be huge.
Ultimately, as the Information suggests, Facebook is looking
to become a one-stop-shop for advertisers to buy ads — both desktop and
mobile — across the web.
That's why it launched the Facebook Audience Network last
year that allows marketers to extend their Facebook campaigns to other mobile
apps using its targeting data.
And it's why Facebook is cranking up support behind its
Atlas ad server which allows advertisers to use Facebook's data about consumers
to target them on non-Facebook websites and ads.
And it's why Facebook launched a new data analysis tool last
week called "Topic Data" that shows marketers what their audiences
are talking about.
By improving its measurement offering, Facebook now has
given marketers yet another incentive to book more of their online ad campaigns
through Facebook.
Mobile app install ads are a huge business. Business Insider
Intelligence estimates 30% of total US mobile ad revenue last year was
generated by app install ads.
It's not just game developers that are buying these types of
ad units: E-commerce companies and brands are buying them up because they
result in significant downloads and an easily measurable return on investment
(the holy grail of marketing). A mobile app install ad doesn't just drive that
one-time download, it drives what is known as "lifetime customer
value," whereby brands can analyze everything they do in that app.
A huge proportion of Facebook's mobile advertising revenue
is made up from mobile app install ads (although Facebook has never publicly
declared the percentage.) The Information pegged Facebook's mobile app install
ad revenue at $3 billion in 2014, or one-third of its total revenue. The report
also claims that Facebook accounts for half of the entire mobile app install ad
market.
Facebook's mobile app install ads are more than
than three times as expensive as the average Facebook ad, bought on a CPM (cost
per mille/1,000) basis. And they're also highly-priced when compared to other
paid advertising (including other app install ads) on other platforms. Demand
is likely so high due to Facebook's ability to let marketers target highly
specific audiences, based on the wealth of data it has on its users.
If Facebook can demonstrate how the hugely popular mobile
app install ad format is driving conversions for marketers across the board, it
will likely open up yet more revenue: More marketers will likely buy mobile app
install ads through Facebook, and it will generate income by licensing out the
measurement data.
.jpg)
There is already a market in tracking which ads a user
clicked last before they went on to download an app. The Information spoke to
one such measurement company, Kochava, which claimed some of its clients — in a
roster that includes Disney, Netflix, Pandora, and even Facebook — pay hundreds
of thousands of dollars a month to track their mobile ad campaigns.
Now it looks as though Facebook is trying to carve off some
of that burgeoning mobile measurement market for itself.
Facebook is behind only Google in the global mobile advertising market
No comments:
Post a Comment