Despite a minor network shutdown earlier that day, on Oct. 21 Facebook announced the addition of video marketing to its mobile app advertising. The change means businesses can now display commercial-style videos in user news feeds, expanding content marketing opportunities through Facebook’s massive network.
Now, users looking to install an application through Facebook can view a mobile video that promotes and explains the app. The video is designed to help users decide whether they want to commit to the app.
In announcing the move, Facebook noted video’s proven success at driving engagement in the traditional Facebook News Feed. The move is part of Facebook’s efforts to expand its revenues from video advertising. The company has already been testing mobile autoplay videos used to promote certain musicians and celebrities. While testing is currently being conducted on a limited basis, the 15-second ads are expected to go for upward of $1 million each.
Adjustments Made to Video Ad Pricing
In addition to an expanded use of video advertising on mobile devices, Facebook is enhancing the pay structures and bidding methods for these ads. As an adjunct to cost-per-click pricing and cost-per-thousand impressions, mobile video marketers can now choose to place bids according to the cost-per-action (CPA).
With CPA, marketers would only have to pay for an ad if it resulted in a download or installation of an app. Facebook is encouraging this new pricing model by noting the 20-percent decrease in cost-per-install of a mobile app compared to the average cost through a cost-per-click strategy.
The company said this new pricing model would be gradually rolled out to advertisers in the days following its announcement. In the meantime, a tutorial detailing the new advertising and pricing options is available through the Facebook Developers interface.
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