Today, we're introducing three new ad solutions—playable ads, retention optimization, and minimum return on ad spend (ROAS) bidding-designed to help gaming marketers connect with their most valuable players.
Playable ads can help advertisers drive higher-intent installs from people who have experimented with the game and are, therefore, more likely to play after installing. Game developers, such as Bagelcode and Rovio, are already seeing results using this new format.
Starting today, playable ads will be available to all advertisers using the app install objective on Facebook News Feed.
We know that gaming advertisers want to find people who are most engaged with their app. This is especially important for gaming developers with ad-based revenue models. That’s why we're testing retention optimization with select app advertisers to help them reach highly engaged players. Retention optimization allows gaming marketers to deliver their ads to the people most likely to play their game, helping gaming developers monetize their apps better.
Gaming developers, such as Bitmango and Beijing Fotoable, have been testing retention optimization and are already seeing results. Beijing Fotoable saw a 30% higher return on ad spend using retention optimization, compared to optimizing for installs.
We plan to roll out retention optimization more broadly later this year on Facebook, Instagram, and Audience Network.
Players who make in-app purchases are extremely valuable to gaming developers. A recent research study from AppsFlyer and Facebook found that paying gamers in the U.S. spend on average $20 in-app by day 7 after install and as much as $49.33 by day 90. ["Lifetime Value: The Cornerstone of App Marketing," AppsFlyer in cooperation with Facebook, 2018 LTV Benchmarks; Includes IAP + IAA revenue]
Last year, we launched value optimization to help advertisers find players most likely to make in-app purchases. Now, we're introducing an additional tool to make value optimization even more effective.
Over the next few weeks, we will roll out minimum ROAS (return on ad spend) bidding. 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.
Value optimization, combined with minimum ROAS bidding, will be available to advertisers in September 2018 on Facebook, Instagram, and Audience Network.
For help creating and managing playable ads, consider working with these Facebook developers: