Facebook rolls out action-based bidding to mobile app ads

New York:
Social networking giant Facebook has announced its support to “App Event
Optimisation” across Facebook, Instagram and its Audience Network from
Tuesday, promising more installs of apps and actions within the app.

Launched in
2012 on Facebook, mobile app install ads allow developers to advertise their
apps inside the social network’s properties.

Since then,
quite a few updates have been made to this advertising tool, including
customised calls to action such as “Open Link,” “Use App,”
and “Play Game,” along with video support and the launch of a
cost-per-action (CPA) bidding model, technology website Venturebeat.com
reported on Tuesday.

According to
Facebook product manager Jehan Damji, retention within the app ecosystem is
“a difficult problem” - after 30 days, only about six per cent of
users will come back to the app.

“App
Event Optimisation” plays an important role as advertisers can further
target ads based on those who are most likely to add something to their
shopping cart, make a purchase or complete a level.

The upgrade
would provide app events to Facebook and specify where developers want their
ads to be displayed.

According to
Damji, Facebook’s algorithm will look at the historical data of that app, along
with consumer statistics and then locate people who fit the demographic before
showing the mobile app install ad.

Mobile gaming
and commerce apps like Poshmark and Smule are already using this offering.With this new
capability, advertisers can bid for ads in a different manner.

“We are
now aligning a lot closer with what developers have been asking for. It is
about really delivering the right customers to the right apps so developers can
continue to grow their business,” Damji was quoted as saying.

IANS