Facebook recently announced its plan to help advertisers and brands reach out to users who would not just download the app on their phones, but also use them. The new product called “App Event Optimization” will allow brands to target users who will find their app valuable in the longer term, or are likely to spend money on the application.
Developers and businesses have been able to get people to install apps on their phones, but because plenty alternatives are available users tend to un-install the app at the slightest discomfort. On an average, only about 6 percent of the people who download an app, continue to use it 30 days post. According to Facebook, users spend about 90 percent of the time spent on mobile devices inside apps. Also, 58 percent of the mobile expenditures in the United States are in-app purchases.
App Event Optimization will allow developers to target specific in-app events. This gives them a fair idea about what kinds of users are being targeted. The tool will change the manner in which advertisers and brands bid for ads. Developers will now be able to reach out to users who usually only view content, users who fill up an in-app registration, users who make a purchase, and so on. To use this feature, developers need to install development kit available in Facebook’s Power Editor and through its Application Program Interface. According to Facebook product manager, Jehan Damji, the tool will use historical data of apps to determine customer purchase statistics and narrow down people who fit the criteria before displaying ads to them.
The ad tool has been tested by few companies who reported to have received good results; Music app, Smule, for instance, reported that the feature increased its revenue per user by 22 percent. Also, Poshmark reported that the tool helped them target users who were more likely to make a purchase on the website, helping them decrease their cost per event by almost one quarter.
Experts from Business Insider predict that, through this feature, 1.15 billion apps will be downloaded, which is about 33 percent greater than the downloads last year. The tool is now live globally.
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