Cha-Ching: Facebook to Offer Cost Per DownloadWritten by Michael Levanduski
July 8, 2012 # 5:22 pm # Industry News, Specials # 4 Comments
As if they need it, Facebook has found a way to get more money out of their advertising methods. Facebook, one of the wealthiest internet companies around today, has released a new form of advertising for their media network, which is particularly focused toward mobile app developers. Facebook has recently moved their advertising network from only desktop formats to both desktop and mobile. Now, they are incorporating advertisements for apps into their desktop and mobile versions of Facebook. People will now be able to find out about mobile apps by simply browsing their news feeds and perusing the many different pages of Facebook.
Simply, all this means is that Facebook is trying to reach out to every possible advertiser that is out there, and give them a chance to utilize Facebook’s new advertising techniques. They hope that with good results, they can build a good reputation with marketers, brands, and now, app developers. The Wall Street Journal reported that Facebook will provide advertisers with a way to, “place as for apps directly in a users’ News Feed on their mobile devices.” Putting ads for apps in mobile News Feeds will inform people of the apps while they are on the very devices where they can download them. The Wall Street Journal also reports, “Facebook would charge companies every time an app is installed on users’ smartphones, one of the people said. Facebook can charge significantly more for an app installation than it can for the traditional cost of every one thousand people who have viewed an ad.”
Say you’re a frequent user of a certain app and you are very satisfied with that app. What Facebook would be doing is suggesting other apps, developed by the same app developer, that you may also be interested in, but wouldn’t really hear about otherwise until possible weeks down the road. App developers haven’t really ever been given a proper way to advertise other than in other apps or on display banners in desktop platforms. By paying Facebook per download of an app, their apps would appear in the News Feeds of potential customers. It’s really an optimal setup for app developers to advertise.
The Wall Street Journal has reported rumors that Facebook will launch this new advertising platform for app developers on July 16, 2012. Some of Facebook’s executives have concern about a repercussion related to privacy, due to the fact that the advertising technique relies on information about what apps users have downloaded on their mobile devices. It’s true that this will probably be an issue for some, but not too many will be very concerned about tracking app downloads, especially if it is only Facebook doing it to figure out their interests.
So, Facebook is trying to perfect advertising, despite the hard time they’ve been having lately in doing so. They have the potential to be a great advertising option for brands and advertisers, but they just haven’t grasped a way to advertise in a way that is ideal for both the consumer and the advertiser. When they figure that out, they have a good shot.