A critical part of Facebook's platform strategy is effective mobile advertising. Their recently re-introduced mobile app install ads, which appear in a user’s news feed, include the name of the app, an image, a short description and an “Install Now” button that directs consumers to the app’s page in Google Play or Apple’s App Store. In terms of conversion rates, the click-to-install rate from these ads can be up to 10 times higher on average than a standard banner ad, while cost-per-install might also be 20% to 30% cheaper.
Because effective mobile advertising is so critical for businesses, I wanted to share another recently discussed success story. Stumble Upon is a form of a search engine that finds and recommends web content to its users. Its features allow users to discover and rate Web pages, photos, and videos that are personalized to their tastes and interests using peer-sourcing and social networking. In recent years, it's user base has fallen by 50% to 3.3 million/month. Now it is seeing a jump in revenue due to mobile advertising. Their 'Stumble button,' which provides readers with new stories or websites that resemble those they’ve suggested to other users, is a natural fit on mobile, enabling users to easily browse without a keyboard.
Stumble Upon and it's advertisers recognize that on mobile, banner ads are not as effective as ads that are more deeply integrated into the user experience. When users click the Stumble button, they have a 5% chance of being redirected to an advertisement, either a video clip or an ad in the form of a website or game. Each of these destinations are intended to be more interactive than a conventional display ad. Users can also vote on these ads. A particularly successful ad on Stumble Upon was Red Bull’s short video of skydiver Felix Baumgartner jumping from a helium balloon in Earth’s stratosphere last year. This success can mean big bucks for Stumble Upon, as they charge around $75,000 for a few days of mobile promotions.
As business like Facebook and Stumble continue to seek ways to generate revenue from their mobile user base, I am curious what other successful tools and strategies you know about.
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