Facebook is launching playable ads which allow users to play a game in HTML5 before buying. Playable ads have been around for some time now and were first created by mNectar over four years ago and they have been scaled further still by companies like AdColony. Facebook also plan to launch new formats aimed at retention optimisation and “minimum return on ad spend” (ROAS) bidding—designed to help gaming marketers connect with “their most valuable players”.
You can see the playable format, designed to hook gamers via providing a demo in the news feed, below:
Facebook say that game developers such as Bagelcode and Rovio are already seeing results using this new format. Bagelcode saw a 3.2X improvement in return on ad spend on Android and a 1.4X improvement in return on ad spend on iOS, whilst Rovio saw a 40 percent lower cost per paying user and a 70 percent lift in day seven return on ad spend. Facebook has partnered with a number of developers for the ads including Bidalgo, CrossInstall, ConsumerAcquisition, CyberAgent, Kaizen, Kenshoo, MakeMeReach, Nanigans, Septeni Original, Smartly.io, Soft-World, TreSensa and Wisebirds.
One of the problems that plagues gaming marketers is retaining users who download their app as many disappear not long after installing an app, which particularly impacts gaming developers with ad-based revenue models. Facebook have been testing “retention optimisation” with a small number of app advertisers to help them so they can to deliver ads to the people most likely to play their game.
Gaming developers such as Bitmango and Beijing Fotoable have been testing retention optimization and are already seeing results. Beijing Fotoable saw a 30 percent higher return on ad spend using retention optimisation, compared to optimising for installs. Zijing Yang, Chief Operating Officer at Fotoable, said that retention optimosation has significantly improved his company’s day 2 and day 7 retention rate. “We saw a 30% better ROI compared to install optimisation when looking at cost per day 7 retained user,” he added. Facebook plans to roll out retention optimisation more broadly later this year on Facebook, Instagram and Audience Network.
Minimum ROAS Bidding
Facebook have also created a product aimed at advertisers who are focused more on players who are likely to make in-app purchases. In a blog post the company cited a recent research study from AppsFlyer and Facebook found that paying gamers in the US spend on average $20 in-app by day seven after install and much as $49.33 by day 90.
Last year Facebook launched value optimization to help advertisers find players most likely to make in-app purchases, and introduced an additional tool – minimum ROAS bidding – which they claim will make value optimisation even more effective. Advertisers will now be able to set a minimum spend to find the players most likely to make in-app purchases, and eliminate spend on connecting with players less likely to engage.