Facebook had a mixed Q1 2015 earnings with a miss on $3.45 billion revenue. Ad revenue hit $3.32 billion in Q1. Mobile accounted 73% of ad revenue, up from 69% last quarter. With Facebook reaching 1.25 billion mobile monthly users (up 5%), and 798 million daily mobile users (up 7.1%), it now wants to further spike the mobile earnings by bringing carousel ad formats.
Launched last year, carousel ad formats help brands to showcase multiple images and links in one ad. Since then, advertisers have seen carousel link ads drive 30-50% lower cost-per-conversion and 20-30% lower cost-per-click than single-image link ads. With this growing success Facebook is now opening the format for app developers to drive downloads and get people who have already downloaded an app to keep using, according to a latest release by Facebook.
Carousel ad formats will allow app developers include 5 images with links to a page within the app so that the app is installed once it is clicked. According to Facebook mobile app install and engagement ads in the carousel format are available now through the ads API. The carousel format continues to be available for link ads in the ads API, Power Editor and Ads Create To.
While the new ad formats will drive more app installs, the insights will also tell advertisers which links in the ad are performing best and give the option to let Facebook optimize the order of the images based on engagement and expected performance.
The success of carousel ad formats also depends on how well a brand uses the multiple images in telling a story while it gets a user interested to click on it. For example the way MINI, the small economy car used the carousel format as a storytelling canvas to take people on a virtual tour of the new MINI Hardtop 4 Door.
Similarly Neiman Marcus used the carousel format to bring its catalog to Facebook, showcasing beautiful imagery from their Spring Shoe & Handbag Collection. Compared to other advertising efforts, the carousel format drove 3X more conversions and 85% better click-through rates.
Last week, Facebook extending its deep linking capabilities beyond engagement ads to also include mobile app install ads. This new feature will help developers and advertisers send people directly to information they care about when their app is opened for the first time.
Previously, the deep-linking feature was available on re-engagement ads used to prompt people to open an app they have previously installed. But by merging this deep linking with the instant gratification and high conversion rates of app install ads, and the urgent calls to action of direct marketing, Facebook spawned a different ad type all together.
Now this deep linking feature can work with carousel ads to adjust links within image sequence so that people are more likely to click on the link.