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Video Creative, CPA Buying for Mobile App Ads in Facebook

Posted on 10.27.2013

Facebook users will likely start encountering far more advertisements on their mobile apps very soon.

The social network announced last week that developers and advertisers will be able to use video creative in order to drive app installations starting in late 2013 and early 2014 (auto-play video coming in 2014). For now, Facebook users will essentially be able to click play and watch videos featuring mobile apps within the stream before actually installing the apps being promoted.

DoubleDown Casino was one of Facebook's early testers of the video creative in mobile app ads and found that the format resulted in increased install rates and decreased costs per install.

"We've seen tremendous success with mobile app ads and are looking forward to using video to make them even more engaging with rich media like video," said John Clelland, Vice President, Interactive Marketing for DoubleDown Casino.

Facebook also noted that it has simplified the buying process for mobile app ads by providing an option for advertisers to bid and optimize on a cost-per-action (CPA) basis. Advertisers could previously bid on cost-per-click (CPC) or optimized cost-per-impression (CPM), but now, only when a user downloads and installs an app will a charge be incurred. Facebook indicated that in its own tests, buying on CPA results on average in a 20 percent lower cost per install than buying on CPC.

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