Facebook has just announced new plans for mobile app-install ads on the world's largest social network. Its goal is to get Facebook users to not only install apps, but also use them and take actions in the applications such as spending money. Its new product is called App Event Optimization and allows the social media company's advertisers to reach people who become long-term users after downloading the app.
The social giant notes that getting Facebook users to use mobile software is important to its app business. It reported third-party data that almost 90 percent of time spent on mobile devices now happens in apps. In addition, 58 percent of mobile expenditures in the United States are in-app purchases, according to Tech Crunch.
However, other studies show that one month after people download and install apps, only a small percentage is still using the app. The figure is 6 percent.
Facebook's new ad tool lets developers target certain in-app events. That makes it easier to reach users who will likely fill out an in-app registration, view content, make a purchase, and so on. Mobile app install ads are then only served to target Facebook users.
The Mark Zuckerberg co-founded company explained that developers must first install Facebook's devkit before they can use App Event Optimization. It is also only available in Facebook's Power Editor and through its application program interface (API).
Facebook's new ad tool has already produced big results. Clothing reseller Poshmark reported that Facebook helped the company to target people were more likely to buy items, which decreased its cost per event by almost one-quarter.
Facebook's improved app-install ad business can boost its mobile revenue. Business Insider recently reported analyst estimates that note 1.15 billion apps will get downloaded via Facebook marketing. That is a one-third increase from 2015.
In related news, brands are not waiting for the smash hit mobile game "Pokémon Go" to launch its in-game advertising. Companies such as T-Mobile, Sprint, and JC Penny are already cashing in on the smartphone game of Google spin-off Niantic.
McDonald's name and logo are now in the app's code. Meanwhile, Yelp's new feature helps users find restaurants and stores that are near PokéStops for buying in-game items, according to AdAge.
Here are common Facebook advertising mistakes: