Ads API Profile: AdParlor’s Full-Service Solution for Game Developers

As part of our ongoing series of profiles on companies that offer products for Facebook’s Ads API, today we look at AdParlor. It provides a full-service solution for app developers working on and off the Facebook platform, helping them buy acquisitions without hiring their own Facebook ads managers.

For those not familiar, Facebook’s performance advertising system is the primary paid tool through which social game companies and other developers attract new users. To allow developers and other marketers to target ads and manage bids for large scale campaigns, Facebook has allowed a limit number of companies acces to an ads API on which advertising tools can be built.

AdParlor has built an ads API tool which it uses internally to conduct managed spend campaigns. Developers set a cost per acquisition they are willing pay for different country, age, and gender demographics and install AdParlor’s tracking pixels on where they consider an acquisition to be completed, on monetization, or on a specific action. AdParlor than buys CPM and CPC ads from Facebook on the developer’s behalf, optimizes bids to achieve the client’s goals, and earns or loses the difference between their cost per user and the dev’s set CPA. Developers are only charged what they define.

Developer clients provide some creative assets, but then AdParlor takes care of the rest, creating and targeting ads, managing bids, optimizing, and reporting back to the client. The only part of the ads API tool developers have to interact with is the reporting dashboard which lets them monitor performance and pause or activate campaigns. By using an external company to handle advertising, developers can focus on improving their games.

Company Profile

AdParlor began as a Facebook banner ad network and offer wall provider in 2008. Restrictions on banner ad content plus competition and backlash in the offer wall space pushed the company away from these business models. Meanwhile, it saw that the largest demand for its ad network came from developers trying to drive user acquisition, and it had begun buying Facebook ads through the bulk uploader tool to deliver the volume developers wanted. Through the laborious process of manually A/B testing ad variants, the company formulated ideas for a sophisticated tool.

In march 2010 AdParlor’s application to use the ads API was approved. It quickly built the tool and shifted its business to full-service Facebook advertising. The bootstrapped, Toronto-based company now has ten employees including three engineers. The company makes money by running campaigns where their cost per acquisition from CPC and CPM campaigns is less than the CPA they charge clients.

AdParlors clients include Facebook game developers KlickNation and A Bit Lucky, console developer Ubisoft, online and desktop developer PlayFirst, and group deals provider Groupon. In the first week of November, 7 of the 20 fastest growing Facebook apps were advertising with AdParlor.

To ensure clients are large enough to receive the company’s focus, AdParlor requires at $10,000 spend commitment, though their average client spends roughly $50,000 a month, and their largest spends more than $500,000 a month. AdParlor is now driving over 3 million app installs per month, and producing over 400 million ad impressions a day.

Service and Product Info

When clients sign on with AdParlor, they either provide spreadsheets of CPA targets for different demographics or AdParlor can use predictive modeling to help the client determine appropriate goals. Clients also submit creative assets which AdParlor’s design team builds off of to create ad images whose colors and shapes are swapped and combined with different headlines, titles and bodies to create thousands of ad variants. Clients can create an advertising account on their app for AdParlor, permitting exclusion targeting of those who’ve already installed their app.