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Facebook Holds the Future of Mobile Advertising

Published: September 5, 2013

Author: Ryan Pitylak

Regardless of whether you own any Facebook stock, you’ve surely heard about the 60%

Facebook's rise to success
Facebook’s rise to success

increase in its stock price from $26 to $42.  What is the reason behind this huge increase?  Facebook makes a huge profit from mobile display advertisers because they provide the perfect way to target people.
In April I covered eMarketer’s announcement that Facebook receives a larger share of mobile display advertising dollars than any other company, and by every indication will continue to command a huge share of the market. TechCrunch recently covered eMarketer’s recent projections that Facebook’s share of mobile ad revenues will reach 15.8% this year.
As an agency responsible for managing the advertising of several apps, we’ve had incredible success finding the right type of installs on Facebook.  The ability to target so precisely makes Facebook much more attractive than traditional mobile ad networks.
After almost a year of driving mobile app installs from Facebook, we’ve found several techniques that increase our success.  Consider the following:

-Use Facebook’s oCPM bidding technique
-Leave the oCPM target bids at the their default settings to gain volume
-Create compelling images and copy that receive a CTR of 1% or greater
-Set up individual campaigns and target different sets of compelling and related interest targets to see which segment performs best
-Carefully consider age and gender in your targeting settings
-Consider these other tips

A prediction about the future of mobile app advertising on Facebook:

Facebook provides a great platform for driving mobile app installs.  However, their reporting system still needs some work.  Understanding the direct ROI from an advertising campaign makes it much easier to continue and scale the campaign.
Facebook needs to make it possible to show revenue generated from people who download the app.  This information should be available in their reporting tool.  Many of the major tools out there (we use Nanigans) makes this possible.  However, this should be something that’s part of the standard Facebook SDK and advertising tracking system.  To make the data relevant, Facebook needs to provide a way to attribute the revenue generated back to the actual install.  The attribution window should be adjustable from within the reporting tool.
This change would be a major win for Facebook because it would give advertisers the ability to calculate a direct ROI from their advertising.  We do this for our clients and it provides much more visibility into the value generated from the advertising.  Assuming you get the right people to download the app, it also allows you to spend more with a higher degree of confidence about ROI.

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