Facebook’s recent earning report continued “to show an incredible financial trajectory which the company has been on for the last 18 months.” The key is naturally advertising revenue and the main engine is mobile. “Their most recent quarter saw ad revenues grow 82% year-over-year. Mobile accounted for 59% of their ad revenue, up from 53% in Q4.”
Digging deeper, according to Zuckerberg, “on mobile, app installs have been one of our best performing ad products, driving over 350 million installs to date.” This makes sense as installing a mobile app via a mobile ad makes it an easy, one-click process that benefits all parties.
Since this ad format is relatively young, it can only improve with app types beyond games jump in and performance data allowing optimization and more precise targeting. But for now, I offer a simple observation to advertisers: there’s no point in running an install ad on a phone that already has your app. In the example on the left I noticed the Netflix ad in the Songza app on my phone. I not only have Netflix installed on my phone but I have a paying account connected to it. Offering me a free month is useless. I don’t know what mobile ad network Songza is using and whether it can even access this kind of information but looking ahead, this kind of knowledge is crucial for making smarter advertising decisions.
Mobile in-app advertising can and will become smarter. Can’t wait!