Early Studies Show Facebook Mobile App Install Ads Perform Well For Devs, Indicating Big Revenue Potential

Chances are you may have seen one yourself, but just how well are Facebook mobile ads promoting app installs performing? AdParlor, one of Facebook’s advertising and marketing partners, has provided us with some data to show that the answer is rather well, although the experience of another developer points to some of those good gains possibly being short-lived. The gains of a strong app install model are potentially not just good news for developers — who need more than app store rankings these days to get their apps seen, installed and used — but also investors — who need to keep seeing evidence of solid business models in Facebook’s business. AdParlor recently ran a four-week campaign with a large global gaming company (it doesn’t say which one), with app instill ads placed in the mobile news feed. AdParlor found News Feed ads to be one of the most engaging and effective ad placements on Facebook’s platform at the moment, with average click-through-rates of 0.5% (ie, how many people click on the ads) and sometimes higher depending on the vertical. AdParlor, the divsion of online advertising network Adknowledge that handles Facebook advertising for ?hundreds of companies like?Groupon, L’Oreal, American Express, Coca Cola, LG, OMD, Mindshare, Starcom, says that this particular campaign was for a role-playing game, with the aim being (as it is with many Facebook ads) to drive more players to the game’s iOS app. The ad delivered 10 million mobile impressions and drove thousands of iOS installs over four weeks. Tracked and optimized for the most effective cost-per-install by country, this is how different countries broke down for cost-per-install: What these numbers, all under $3, show is that the cost-per-install — meaning the amount of money it is costing developers to get users to act on their ads — is still remaining relatively low. In other words, a lot of users are clicking on the ads and downloading. That’s something Kate Simille, a product director at app developers Miso, has also noted, with even more cost-effective results:?Miso recently decided to buy mobile ad units on Facebook’s mobile platform to promote a new app, Quips, along with ad units on two other networks, mDotm and Tapjoy. Their conclusion: Facebook far and away had the best results, with $0.45 Average cost-per-click (CPC) (not install); a 26% conversion rate of installs (actions) to clicks, with the average cost per user at $1.73.

Source: http://feedproxy.google.com/~r/Techcrunch/~3/0xm3u_TwH1Q/

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