CYBECOM Pty Ltd - Ecommerce Architects - Web Developers - Brisbane

Facebook’s Mobile Ads For Apps

Facebook Logo


Back on 8 August 2012, Facebook announced it was beta testing its new mobile ads for apps of which the repercussions are only just starting to filter out.  In their developer blog post, they said that developers of apps can “grow their business with an ad unit that helps them reach and reengage their users.”1  To explain it, Kim-Mai Cutler of Techcrunch said “These ads send users to the iOS app store, where they can download promoted apps. They’re going to be an important prong of Facebook mobile monetization efforts… Why? Facebook can’t derive fees or virtual currency revenue from mobile apps, because they exist on platforms operated by the company’s frenemies Google and Apple. As users have migrated to mobile devices, Facebook’s payments revenues has stalled because of this…. So mobile ads are going to be the key way that the company earns revenue from its developer ecosystem on mobile devices.”2

Back in August they were seeking out beta testers and right now, the results of that testing is coming in and it is all very positive.   Jim Edwards of Business Insider said, “ CEO Jason Goldberg, whose company tested the ad unit with Fab’s shopping app, says it was “Five times more effective than any other mobile download channel that we’ve used.” Fab is one of Facebook’s biggest advertisers.”3

At the fourth quarter briefing today, Facebook’s COO Sheryl Sandberg, announced that 20% of the top 100 grossing iOS apps are using Facebook’s new mobile app install ads. It turns out that the ads don’t just get good click-throughs but many people download the resulting apps. History shows that once a user has an app on their mobile device, they’ll use it frequently. So how come the ads are so effective? One thing that Facebook has that many other ad networks don’t is information. They know all sorts of data about their logged in users which means that the ads are highly targetted. And then the flip side is that Facebook offer developers  a way to monitor their insights through a simple flow on the App Dashboard. So it’s a win-win value-add and finally it gives Facebook a way of earning money from the increasingly lucrative area of mobile devices.

Even if the general ecommerce market is still catching on, savvy developers and marketers quickly picked up on this.  Back in August, Nick Ellison; CEO of NickEllison.Net said, “Wow this is huge! Smooth move Facebook.” and Kasim Zorlu, Marketing Director at Bee Square said, “We were waiting for this, a piece of awesomeness :)”.

On a separate point, for the first time in the company’s history, the 4th quarter earnings announcement revealed that during the quarter more people used Facebook on mobile devices than from traditional web devices.  That is particularly poignant when looking to the future.


Michelle Jansen

Michelle Jansen

This article has been written by Michelle Jansen, Principal Ecommerce Consultant for CYBECOM. Michelle holds the qualifications of BAppSci (Maths & Computing), PostGradDip Business (Ecommerce) and GradDipEd (Middle Years). She has been consulting in Ecommerce since 1999 and has performed work for clients in all areas of business including SMEs and Corporates as well as State and Local Government.

Contact Details

CYBECOM Pty Ltd - Since 1999
ACN: 088 005 967
ABN: 13 088 005 967

PO Box 138
Hamilton QLD 4007
T 0417 916 529

Network with us

Connect with us via a selection of popular social media, networks and other platforms.

RSS Feed