New Facebook ad: In-app virtual goods purchases via News Feed

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By Justin Lafferty Comment

VirtualGoodsAd

Facebook announced today a new way for app developers to prompt purchases of virtual goods right from the News Feed. Developers can create News Feed (or sidebar) ads that allow users to make a purchase of virtual goods from the desktop.

In beta, Kixeye used this ad format to push virtual goods for its game battle Pirates, re-engaging active players who had made purchases before as well as those who have not paid. The developer offered discounts on virtual currency, seeing a more than 10 percent increase in click-through rate and a 50 percent conversion rate for past paid customers. For gamers who hadn’t made a purchase previously, there was a 14 percent conversion rate.

Overall, the campaign saw a return on ad spend of greater than 5,000 percent.

Facebook’s Pin Lu talked about the new ad format available for app developers:

We updated desktop app ads last year to help app developers better engage their players and turn them into payers, and we’ve always allowed developers to sell virtual goods in apps on Facebook. Now, with desktop app ads for virtual goods, developers can take both of these products a step further, and engage players with promotions outside of their app. Promotions at a value of $3 or less will be free for developers to provide to eligible people as part of our existing Payer Promotion feature, just as they are within all desktop apps.

Starting today, developers can create desktop app ads for virtual goods through all of our ads interfaces, including Create FlowPower Editor, or through our Preferred Marketing Developers. For more information, please see our tutorial on how to use desktop app ads for virtual goods.

Readers: What do you think of this new ad format?