Social media giant Facebook is tackling mobile app retention with a new ad product.
The company now supports bidding within its app install ads that will allow advertisers to target based on specific actions that they want users to perform. The product, called app event optimization, is now available on Facebook, Instagram and across its audience network.
App event optimization is a modification of Facebook’s cost-per-action (CPA) model for advertisers. Until now, bidding on CPA meant that an advertiser could buy based on a user’s likelihood to follow through with an install after receiving an ad.
Now advertisers can buy impressions based on the likelihood that a user will complete a specific event post-download, and if an advertiser is savvy, they will identify those events that indicate whether a user will have a higher lifetime value.
As mobile users' time in-app grows, that time is only growing for a very select few apps. Users are inclined to find a few apps that fit into their lifestyles and stick with them — and if they download a new one, only 6% will continue to use it 30 days after the initial download.
Finding an audience for an app is no longer a challenge. Finding an audience that will stick around is the hard part, and while certain actions can indicate the “stickiness” of a user, none are foolproof.