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.

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

AdExchanger's Big Story podcast with journalistic insights on advertising, marketing and ad tech

Google Had Its Day In Court. Now, It’s Amazon’s Turn

Google won’t have to break up its ads business after being declared an online monopolist. Meanwhile, Amazon faces a lawsuit from the FTC alleging that it charged advertisers more than necessary for ecommerce ads.

The FTC’s Amazon Lawsuit Is Ad Tech’s History Of Opacity Repeating Itself

Buy-side experts said it’s another example of a Big Tech platform taking advantage of the lack of transparency built into programmatic ad auctions. And they’re not optimistic change is coming.

How The Fin Tech Clearco Finances Ecommerce Startups (Without Losing Its Shirt)

This week, the Commerce Media Newsletter catches up with a startup from outside the world of data-driven advertising, but with an interesting position when it comes to ecommerce advertising. That’s Clearco, a Canadian fin tech company founded in 2015.

Privacy! Commerce! Connected TV! Read all about it. Subscribe to AdExchanger Newsletters
LOS ANGELES, CALIFORNIA - APRIL 26: Halo Collar CMO Seth Solomons attends a Celebration to Shine a Light On Dog Safety With Halo Collar on April 26, 2022 in Los Angeles, California. (Photo by Stefanie Keenan/Getty Images for Halo Collar)

How Halo Collar Uses Data And Incrementality To Raise Both Awareness And Sales

Halo Collar, a dog collar brand with direct-to-consumer origins, is preparing for its retail expansion by honing its first-party data strategy and incrementality measurement.

tech family cartoon technology family

CartographAI Launched To Help Advertisers Pick The Right Tech Vendors. Now, It’s Helping Vendors Market Themselves, Too

The company is launching an accelerator program to help tech vendors pitch their solutions in a way that makes sense to advertisers.

Comic: Weather Bar

Neuroscience And AI Are Transforming The Weather Company’s Measurement Stack

TWC is building a monetization model that treats weather as both a contextual and an emotional signal, and it’s using AI sales agents to bring it to market.