A Facebook Mobile Ad Network? Why Advertisers & App Developers Should Be Excited

A Facebook Mobile Ad Network? Why Advertisers & App Developers Should Be Excited

February 5, 2014

First there were right-side ads, then ads in the News Feed now… ads in mobile apps? Facebook announced that the company is testing a Mobile Ad Network that will let advertisers place Facebook ads in mobile apps.

The rationale behind Facebook’s newest endeavor is plain and simple:

 “Advertisers want to reach people spending their time in apps and developers need new ways to make money.”

Eighty percent of all the time Americans spend on their mobile devices is spent in apps — key advertising real estate that remains largely untapped by both marketers and app makers. A Facebook mobile ad network would have big implications for both parties.

Monetization for Mobile App Developers

Monetization should be top of mind for app developers, in particular, as more people move toward downloading free apps. Gartner forecasts that 94.5% of app downloads will be free by 2017, meaning that much of the in-app or purchase revenue streams app developers have enjoyed in the past are likely to dry up.

It is unknown how ads delivered through Facebook’s mobile ad network will differ from those currently offered by other mobile ad networks, but seeing Facebook’s existing success advertising on mobile, one could assume these ads will prove equally successful in other mobile app environments.

New Inventory, Audiences & Low Prices for Advertisers

Extending Facebook’s targeting to additional, highly trafficked apps could prove highly beneficial to mobile advertisers for two key reasons:

  •  Greater Inventory – Mobile marketers would be able to employ Facebook’s extensive and highly accurate targeting both on and off Facebook, meaning more ad space and options for advertisers.
  • Increased Relevance – Each app reaches a unique audience. Those currently only advertising via Facebook would be able to reach these previously untapped, and possibly higher value, audiences.

Facebook has the opportunity to set the standard for mobile ads. Other platforms are trying to capture this enormous market, but simply put, they don’t have the same access to customer targeting information as Facebook, and the tools to act on that data. Facebook’s mobile ad network does.