Facebook Launches Video Ads for Mobile

Facebook Shwoing the World in Your Hand  Facebook continues its current spree of advertising changes by recently announcing the advent of video ads on their mobile app. While these ads are currently only available to brands promoting their own mobile app, initial testing shows that these ads are highly effective. Furthermore, Facebook has added another way to pay for these ads – cost per action (CPA) rather than CPC (cost per click) or CPM (clicks and impressions). This not only allows advertisers to produce more effective ads, but it also enables them to spend less and get a greater ROI.

Video Ads for Mobile Apps

The time is finally here – video ads are coming to Facebook’s mobile app. For now, brands can only use these ads to feature their own mobile apps before users choose whether or not to install them. Appearing in the News Feed, users can click to play the ads, which seems to be a good choice on Facebook’s part as auto-playing ads would lead to significant backlash. Underneath the video ad is a simple install button for the mobile app.

The Initial Tests

According to Facebook, “Video creative has proven to be an effective way to drive engagement in News Feed.” Initial tests from beta users such as DoubleDown Casino, which offers mobile gaming apps, showed that by using video ads, brands were able to both increase their rate of app installs and decrease the amount they spent per install. Furthermore, Facebook recently reported that video ads for mobile apps have led to 145 million app installs over the past year. These promising results show that video ads are very effective, at least for app installs.

Cost Per Action Payment

In addition to announcing the launch of video ads for mobile, Facebook also introduced a new payment method for these ads: cost per action, or CPA. While ads in the past were either cost per click (CPC) or cost per impression (CPM), the CPA method allows advertisers to only spend money when their app is actually installed. This decreases marketing expenses by 20% for each install, an impressive figure for brands looking to save.

What This Means for You

Overall, these reports from Facebook show that video ads have a serious impact. While they are still only available for mobile app installs, it is likely only a matter of time before Facebook opens up video ads on mobile to other types of promotions. If the beta test results are any indication for how video ads will perform overall, businesses can look forward to using these ads with great success and significantly reduced costs, a major concern for small businesses.

Will your brand use video ads for Facebook’s mobile app?

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Elizabeth K

Elizabeth Kent is a recent graduate with an M.A. in Women’s and Gender Studies from Brandeis University. She earned her B.A. from Smith College with a major in the Study of Women and Gender and a minor in Jewish Studies. Elizabeth recently relocated from the Boston area back to Western Massachusetts, where she spends her free time volunteering with a local non-profit organization. Elizabeth has worked as a writing tutor, archival intern, research assistant, and retail associate. Her interests include studying pop culture, kittens, and making meals with as little cooking as possible.

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