It has been quite a while since the developers and advertisers have been using the “total install” feature as a metric for the success of their app business, and now Facebook is discontinuing it. In the endeavor of bringing more and more advertisers to its platform, Facebook appears to have realized that they are more interested in the conversations and action taken within apps. Therefore, Facebook has announced to shift its attention towards value-based app ads products from now.
Mobile app installs have been available on Facebook since 2012, and as the name hints, the purpose of this is to advertise an app and get it installed in your device. It is similar to Google AdWords, but more inclined towards developers looking to market their work. Facebook and Google have been praising their respective platforms to attract more developers. Back in August, Google announced helping 3 billion app installs, while Facebook had 2 billion.
Even though Facebook is shifting its focus from total apps installed, it has not abandoned the developers whose primary goal is user acquisitions. Facebook’s product marketing lead for customer acquisitions Christine De Martini told Venturebeat:
If you’re a newer or emerging app business, the portfolio of products we have to drive installs is robust. Whether through targeting, creative, inventory, or measurement tools, there’s a lot of options if that’s the state you’re in.
She is also concerned about the fact that only 6% users stay with the app after 30 days since its download, therefore developers are concerned if the app is being downloaded by the right person. She questioned:
How do you cut through and make sure your app is installed by the right person that will find value in the app and return?
She also said:
In thinking about growth trends, we need to do our part to maximize the opportunity so we can [help developers] grow their business with the right customers. It’s very common now for revenue to come from purchases, engagement within apps where you’re served ads or [do actions] post-install. Revenue is now coming from post-install models.
Facebook will pioneer this change. It told that 80 of the top 100 apps in the Google Play and App Store are using what it calls its “value-based ad products.” One of them is the 2016 released app event optimization. Developers an advertisers may utilize this tool to market their their mobile app install ads to those who are “likely to take valuable actions within their apps.”
Developers today measure their performance from revenue instead of installed apps, said De Martini. With ginormous app installs both Facebook and Google have an extremely wide reach globally, in terms of app marketing as well. But instead of any rebellious actions in terms of metric, Facebook is advocating more action-oriented solutions for the benefit of the industry.
De Martini also mentioned that worldwide targeting and app re-marketing are two other tools available to advertisers.
We believe focus is bringing people to value. It’s what developers are asking for. We see an opportunity to be a leader in the space…84 percent [of app developers] are focused on revenue.
With Facebook’s transition from toting the app install numbers, everyone is eyeing on what is going to be its next move. Advertisers, developers and investors are concerned as to which new metric will replace this system. De Martini did not reveal the full program but said:
I’m excited about the potential of the value focus. We’re planning to extend the approach to other direct response [products].
