Will Cost Per Installation Save Facebook Applications?

This post is written by Guest Author Hussein Fazal, CEO at AdParlor Inc.  AdParlor is a performance based applications advertising network focused on CPI (cost per installation).  In this post, Hussein highlights some of the points in AdParlor’s recent white paper that discusses the marketing challenges application developers face as Facebook continues to remove viral channels.  You can read the full white paper by downloading it here.

As SecondShares has previously discussed, many application developers have seen a recent decline in user growth as Facebook cuts back on viral channels.  Application developers must now allocate larger marketing spends to purchasing installs.  It has been estimated that a $3 million budget would be required to launch a successful game to 1 million DAU’s.

Purchasing application installs is becoming increasingly competitive.  Understanding the different types of installs available for purchase is just the beginning.  Really understanding deep user targeting, market conditions, application saturation and other variables can have a very significant effect on the ROI an application developer receives on their spend.  Efficiently purchasing Facebook installs can bring savings of up to 40% per user! For many developers, this is the difference between having a profitable application, and company, or not.

Today, AdParlor has released a white paper intending to educate application developers on purchasing Facebook application installs. Some highlights include:

- In terms of user retention, engagement, and monetization:

  • 1 Facebook Ads install =
  • 3 Banner Ads Installs =
  • 30 Incentivized Ads Installs

- Click Through Rate (CTR) and Conversion Rate (CVR) are the two golden metrics that contribute to the Cost Per Install (CPI) equation. Your CPI can vary up to 400% based on how well you can control them.

  • The top 6 factors which influence CPI pricing on Facebook Ads are:
  • Country Targeting
  • Creative
  • Target Market
  • Flow from Click to Conversion
  • Application Saturation
  • Market Conditions

Read more here:  http://www.secondshares.com/wp-content/uploads/2010/06/Purchasing-Facebook-Application-Installs-Everything-you-need-to-know.pdf

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One Response to Will Cost Per Installation Save Facebook Applications?

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