March 23, 2017

Audience Network Pricing Placement by Conversion Quality

Since Facebook’s Audience Network ad platform was launched, they have always been about differentiating themselves from Google Adsense by focusing more on conversions. Recently, they announced that they would start pricing clicks differently depending on where the ad was placed, with the idea that not all clicks are created equal.

“Not all clicks are created equal, which creates a dilemma,” said David Jakubowski, who is Director of Publisher Solutions for Audience Network. “Marketers commonly pay the same amount for someone who clicks on an ad and completes a purchase as they do for an unintentional click. In both cases, publishers are delivering exactly what they are asked for – clicks – but advertisers find wide variations in value.”

Facebook is doubling down on their conversion strategy announcing updates to Audience Network that will utilize the data they have from conversion signals to price ad spots based on their history of converting. Signal information includes app events, the Facebook pixel and other feedback touch points.

Facebook sees higher converting ads spots as more valuable to the marketer and thus worth more. It’s likely that this will cause the price of clicks to go down on poor converting spots and increase on high conversion placements. It will also be a way for Facebook to rate the overall quality of their partner apps and websites from an advertiser perspective.

“At Audience Network, we believe it starts with quality,” says Jakubowski. “We define quality as ads served to real people, on brand-safe properties, with engaging experiences that lead to real outcomes for advertisers and sustainable businesses for publishers.”

If you’re unfamiliar with Audience Network here’s a great overview video: