Facebook is rolling out the ability for app publishers to include Facebook ads in their ad auctions.
This process is facilitated by a technology called header bidding which was introduced last year.
Header bidding allows web publishers to put ad impressions up for auction through real-time bidding between ad networks.
Previously, Facebook’s support for header bidding was limited to advertising on the mobile web. Facebook now supports header bidding for in-app advertising.
App publishers that utilize header bidding now have the option to include ads from the Facebook Audience Network in their auctions.
The company describes how this process will work in its official announcement:
“Currently, ad networks are called one-by-one until an app ad is filled, determined by historical average CPMs rather than which buyer is willing to pay the most. This method often overlooks a network willing to pay more for an impression because it is lower in the chain.
App bidding enables app publishers and developers to establish an impartial and open auction over their ad inventory. All advertising networks are called simultaneously and the highest bidder for the placement wins, thereby providing publishers with opportunities to earn more. Publishers can maximize their access to high value advertisers, fueling the creation of sustainable ad businesses that help ensure people continue to enjoy access to high quality free content.”
Facebook’s app bidding solution has been in testing with a limited number of publishers for the past several months. These publishers have reportedly revenue increases of up to 40% as a result.
