Facebook Video: The Marketing Opportunity
Since releasing mobile products earlier this year, Facebook has made huge inroads into the mobile ad market share and will likely continue its progression at the same trajectory, if not higher. According to eMarketer, Facebook has jumped from 5 percent of the mobile market ad revenue in 2012 to nearly 16 percent by this year's end.
On Oct. 21, Facebook announced its newest product release: video ad units that will appear in mobile users’ News Feed.
The video itself is click to play and can be purchased on a cost-per-impression or cost-per-click basis in the same auction as Facebook's standard app install ads. The initial limited supply of inventory coupled with higher advertiser demand for these units will likely result in a slight premium on prices however. It will be interesting to see if Facebook makes newly announced CPI bidding available for the video units, in which advertisers would only pay for installs. Advertisers should be wary of bidding on a CPC basis for fear that they could end up paying for clicks on the install as well as on the video unit.
While the video format undoubtedly is a medium to tell a rich brand story, experienced app marketers already leveraging Facebook's static creative units for app install ads know that the new video formats provide not just another way to drive installs, but higher quality installs. Fetch clients that currently leverage mobile video advertising in general tend to see higher lifetime value users from video versus standard units. It makes sense — users who have seen a product demo or commercial for your brand are more likely to download your app and perform in-app actions. This is huge for direct response app marketers, especially in verticals like gaming, travel, e-commerce, retail, fitness and others, where there are direct conversion events within the app.