Facebook rolls out action-based bidding to mobile app ads

New York, July 19 (IANS) 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.

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