Facebook has officially launched what is called the “Audience Network,” which opens the mobile ad network, which was previously hosted by Facebook for all developers and other advertising professionals. The mobile ad network was announced back in April, and was already making quite an impression on the advertising world. This new change has come as a pleasant surprise to app developers, advertisers, and publishers as this gives them a boost in the ability to take in more revenue through ads.
Increasing The Chances For Profit
By opening the mobile ad network to developers and advertisers, games and other applications are already taking in a substantially higher percentage of revenue. Garett Sloane of Ad Week explains:
Facebook said Shazam, the app that identifies songs, increased its ad revenue by 37 percent just by plugging into the Audience Network. Also, Glu Mobile, Kardashian’s gamemaker, made twice as much money from ads on the Audience Network.
Game makers, like Glu Mobile, are taking this opportunity to introduce new games as apps within the Facebook-launched network with the help of Atlas, the server that was created to help advertisers target web ads through the personal data collected by social networking.
How It Began And Where It Is Heading
Originally, the creation of the Audience Network revolved around application install ads, but new formats are being introduced quickly, including link ads to motion network traffic into different mobile websites. Companies like Walgreens and HarperCollins have seen revenue increases of 16% and more with this addition to their ad campaign. Ian Sherr of CNET says the following regarding the inner workings of this new system:
This effort, called Audience Network, allows advertisers to use anonymized information from Facebook, such as a person’s age, location and what books they like, and send tailored ads when they’re using apps on their phone.
This new effort allows Facebook to compete with other large web-based companies, like Google, which has its own mobile application system called AdMob, which is the leading driver of most mobile marketing available at this moment. In fact, during the last count, Google had nearly $8.8 billion of the ad industry’s revenue over the past year. While Facebook isn’t quite in that range, it is estimated to have 22% of the possible revenue of ad sales this year, making it a serious competitor in the ad business.
Google may be the current king of ads, but Facebook has set itself apart from the competition by formatting ads for applications in a unique and different way. Many companies are using banner ads or popups, but new methods that incorporate the advertisement to look like part of the application itself has made marketing seem more natural and less obstructive to the user. Techcrunch.com says:
Audience Network will put Facebook into more direct competition with Google’s AdMob, Yahoo’s Flurry, and Twitter’s MoPub for mobile advertising dollars. 62 percent of Facebook’s ad revenue, or $1.66 billion, came from mobile last quarter largely thanks to developers buying News Feed ads promoting their apps.
This can appear in a less unnerving way that allows app users to view images and information more smoothly as a portion of the already streaming data. For now, game makers are using this format to their advantage as it is easy to implant this type of ad into mobile apps without much effort, but larger companies and other application and ad types are also considering this format of marketing and it seems like time is on the side of Facebook with this latest foray into the giant world of online and mobile advertising.