Fiksu: Facebook's Ad Network is on Fire and Getting Hotter by the Day

According to the latest data from Fiksu, Facebook’s nascent mobile ad network is making tremendous strides in its early days of operation. Fiksu’s report, which reveals performance differences between Facebook Audience Network ads, traditional Facebook News Feed ads and other display networks, shows that Facebook Audience Network delivers clear value beyond simple metrics like Cost …   Read More

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Fiksu Facebook's Ad Network is on Fire and Getting Hotter by the DayAccording to the latest data from Fiksu, Facebook’s nascent mobile ad network is making tremendous strides in its early days of operation.

Fiksu’s report, which reveals performance differences between Facebook Audience Network ads, traditional Facebook News Feed ads and other display networks, shows that Facebook Audience Network delivers clear value beyond simple metrics like Cost Per Install (CPI).

“The Facebook Audience Network provides value to marketers well beyond the app install,” said Sriram Krishnan, product manager at Facebook. “It was most interesting to see the conversion and LTV results come through so favorably in their research, further validating that the targeting power of the network was in line with News Feed and far better than display networks.”

Fiksu’s research shows the engagement power of the Facebook Audience Network in attracting loyal, high-quality users despite higher CPIs than traditional Facebook News Feed ads.

Key data points from the report include:

  • High number of returning users: 25 percent higher than display and just 5 percent lower than Facebook News Feed.
  • Drastically lower cost per purchasing user: while Facebook News Feed drove the lowest cost per purchaser, Facebook Audience Network was only one fifth of the cost of its display counterpart.
  • Increased revenue per purchasing user: the data shows revenue per purchasing user of $3.64 on Audience Network, and only $0.15 on display traffic, presenting marketers with a whopping 24x increase in revenue potential. News Feed revenue was also strong in comparison to display, at $1.63, but didn’t match the surprising Audience Network results. These results highlight the value of the loyal, high-quality users that can be found on the Facebook Audience Network.
  • Stellar conversion rate: while click through rates were consistently lower on Audience Network, the conversion rate was nearly 10 percent higher than News Feed and 25 percent higher than display. This demonstrates the power of Audience Network’s targeting capabilities, as the users who did click had a much higher propensity to be the right users.

“The research proves that the latest addition to Facebook’s mobile app ads, Audience Network, can be successful across a range of apps, thanks to the comprehensive tools they provide for segmentation and targeting,” says Craig Palli, chief strategy officer at Fiksu. “As our report indicates, it makes sense for marketers to spend more per click on Facebook properties since the ROI will be significantly better due to value of that segmentation, context and timing.”

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