Home Mobile In-App Bidding Accelerates On Facebook’s Audience Network

In-App Bidding Accelerates On Facebook’s Audience Network

SHARE:

Facebook’s Audience Network is seeing in-app bidding start to pick up some serious momentum.

The number of publishers monetizing through a unified auction increased sevenfold over the past year. Half of them now earn the majority of their Audience Network revenue through programmatic bidding.

“Bidding is the new normal,” said Steve Webb, global lead on the team that manages publisher relationships for Audience Network. “The industry has moved from just experimenting with this to really starting to scale up.”

Part of that scale is due to the continued expansion of Audience Network’s partner program, which now includes seven demand sources with the addition of ironSource on Monday. Rounding out the program is Google (AdMob and Ad Manager), AppLovin’s MAX, MoPub, Fyber, Chartboost and Tapdaq.

Facebook first started allowing publishers to include Audience Network inventory in their unified auctions in 2018. Publishers can either mediate through one of Facebook’s partners or their own in-house bidder. Facebook isn’t planning to build its own bidding technology.

In the last few years, Facebook has invested in helping app bidding “come to fruition” through its partner ecosystem, Webb said.

“App bidding is transforming ad monetization, and it’s not just about the financial benefits,” he said. “There are also a lot of operational efficiencies.”

Freed from the manual labor of managing the waterfall, publishers can spend more time thinking about the user experience and user acquisition.

But the potential for publishers to make more money is a big draw. MAX, AppLovin’s in-app bidding solution, told AdExchanger last year that its publishers see a 10-45% lift in their average revenue per daily active user (ARPDAU) with app bidding. Game studio FUN-GI Games saw a 25% uptick in ARPDAU through Audience Network via the MAX SDK.

Facebook itself doesn’t share its margins with publishers in the network, although Webb claims that Audience Network is one of the most competitive sources in the marketplace based on net CPMs, which is the net revenue publishers garner per thousand impressions.

But what if Apple or Google decide to eliminate their respective mobile advertising IDs? Much of Audience Network’s value is its ability to provide the same targeting and measurement found on Facebook through Audience Network, for which the latter is reliant on mobile ad IDs, such as the IDFA.

Subscribe

AdExchanger Daily

Get our editors’ roundup delivered to your inbox every weekday.

It’s increasingly looking like it’s a matter of when, not if, Apple decides to eliminate or diminish its mobile ad ID.

“This is a hot topic in the industry, and there will definitely be a lot of attention on what Apple might announce [at its Worldwide Developers Conference],” Webb said. “It’s impossible to predict which way this will go, but, either way, we remain committed to helping app developers monetize most efficiently, and that means personalized advertising.”

Beginning in April, Facebook stopped fulfilling ad requests for web publishers from Audience Network, a move likely related to the fact that third-party cookies are in the midst of singing their swan song.

Must Read

How AudienceMix Is Mixing Up The Data Sales Business

AudienceMix, a new curation startup, aims to make it more cost effective to mix and match different audience segments using only the data brands need to execute their campaigns.

Broadsign Acquires Place Exchange As The DOOH Category Hits Its Stride

On Tuesday, digital out-of-home (DOOH) ad tech startup Place Exchange was acquired by Broadsign, another out-of-home SSP.

Meta’s Ad Platform Is Going Haywire In Time For The Holidays (Again)

For the uninitiated, “Glitchmas” is our name for what’s become an annual tradition when, from between roughly late October through November, Meta’s ad platform just seems to go bonkers.

Privacy! Commerce! Connected TV! Read all about it. Subscribe to AdExchanger Newsletters
Monopoly Man looks on at the DOJ vs. Google ad tech antitrust trial (comic).

Closing Arguments Are Done In The US v. Google Ad Tech Case

The publisher-focused DOJ v. Google ad tech antitrust trial is finished. A judge will now decide the fate of Google’s sell-side ad tech business.

Wall Street Wants To Know What The Programmatic Drama Is About

Competitive tensions and ad tech drama have flared all year. And this drama has rippled out into the investor circle, as evident from a slew of recent ad tech company earnings reports.

Comic: Always Be Paddling

Omnicom Allegedly Pivoted A Chunk Of Its Q3 Spend From The Trade Desk To Amazon

Two sources at ad tech platforms that observe programmatic bidding patterns said they’ve seen Omnicom agencies shifting spend from The Trade Desk to Amazon DSP in Q3. The Trade Desk denies any such shift.