Since Facebook launched its mobile app ads 18 month ago, it has become one of the most efficient ways for mobile game marketers to acquire high quality, transaction-oriented players. So much so, that according to recent research*, Facebook mobile app ads were the most productive non-incent source for generating ROI, with an 11x improvement in conversion rate, a 1.4x improvement in purchasing rate, and a 28 percent improvement in the cost per purchasing user compared to other mobile channels including banner networks, video networks and real time bidding exchanges.

A lot of this success is owed to Facebook’s significant reach. With a mobile user base of one billion-plus, the social media giant is one of the largest channels available to reach relevant audiences. But the appeal of marketing on Facebook isn’t simply its volume.

The pros and cons of targeting

Nearly every Facebook user freely offers some self-identifying characteristics, be they as broad as a country of residence or as granular as a love of all things zombie. These unique identifiers allow Facebook to target its mobile app ads to users whose interests are similar to a game’s intended audience. A medieval role-playing game has a better chance of success displayed in front of fans of Game of Thrones rather than those who choose to spend their Sunday nights glued to Mad Men – and Facebook's platform can be that precise with ad placements.

If this all sounds too perfect, well, it is. Sort of. The Facebook ad platform’s ability to provide a virtually infinite number of ways to reach users can make it difficult to determine the most efficient targeting methods. A recent study entitled User Acquisition for Mobile Games on Facebook estimated that there are 3.6 million potential combinations of demographic attributes, device types, geographies, interests, creatives, and text copy. Identifying the most productive segments among the overwhelming number of choices requires a strategic approach, namely programmatic tools that lead to data-driven decisions.

In addition to issues arising from efficient user partitioning, game marketers can encounter challenges when trying to grow or maintain their campaigns. Most notably, these include:

  • Getting volume—Smaller campaigns are often successful, but costs rise when scaling up.
  • Maintaining momentum—Facebook can deliver users cost effectively, but campaigns can saturate over time.
  • Getting high-value users—Making sure users are taking actions that drive profits requires measuring events at a detailed campaign level.

Fortunately, capitalizing on Facebook’s mobile app ads is more than achievable with the right approach.

Consider how granular you want to get

Although highly targeted, deeply granular campaigns can yield better results, there is a trade-off between finding the best performing combinations and the efforts needed to test and identify them. Optimization algorithms can quickly narrow down the target audience, determining the most likely high-success campaigns. Alternatively, you can target lookalike audiences—potential players who share attributes with your current users.

Keep budgets and costs in mind

Finding the right audience will make your marketing campaign successful, but only if you can acquire users at the right cost. Consider:

  • Long-term value (LTV)—Are your acquisition costs appropriate to the long-term value of your players? Spending more to bring in a player with a long-term value of £20 is more justifiable than one worth £2.
  • Media cost variability—CPM can fluctuate widely. Monitoring costs continuously can help you stay on budget.
  • Avoiding saturation—Campaigns can saturate your audience, leading to reduced performance over time. Attention to detail and ability to react quickly can make a big difference in managing budgets effectively.

The tools at your disposal

  • Real-time programmatic bidding—Real-time bidding and budgeting takes advantage of changing ad rates on Facebook instantly, assuring the most efficient spend.
  • Measurement—You'll need to accurately track conversions and link audience segment data to monetization and LTV markers. Measuring in-app purchase events and feeding this information back into your media buying strategy is one of the most critical things you can do to improve ROI.
  • Interest exploration—Often, there are statistical correlations between interests identified on Facebook that can help target additional users. The problem is, some of these correlations are non-intuitive, (i.e., zombie-related terms uncovering additional key words such as “undead,” “Zombieland,” and “Xbox One”), and so it takes content mining tools to identify additional, high-value audiences.
  • Retargeting—Enticing dormant players to re-engage with an app is most effective when targeting specific groups of users. Retargeting tools can segment users in a variety of ways, including player usage frequency, in-app behavior, and purchase habits. And when combined with Facebook’s segmentation capabilities, the tools can produce highly relevant calls to action that can keep your players coming back for more.

In summary, Facebook’s mobile app installs ads are revolutionizing the way game marketers attract loyal users. With the right strategies in place, Facebook advertising can produce the industry’s best ROI for many mobile games.

*based on eight million downloads from a cross section of game campaigns.

 

By Oliver Clark, Director of Sales, EMEA for Fiksu.

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