Twitter announced that it's going to start letting marketers pay for mobile app install campaigns in two new ways: optimized action bidding and cost per install bidding. These will be in addition to the existing coster per app click model.
The company says this is in line with other moves it has made to help advertisers only pay based on actions aligned with what they're trying to do, such as objective-based campaigns, reports, and pricing, which was launched a year ago almost to the day.
"One of the biggest challenges app marketers face is balancing cost efficiency with volume," says Twitter revenue product manger Deepak Rao. "While the cost per app click model allows you to drive user acquisition at scale, optimized action bidding and cost per install bidding offer new ways to control your campaign budgets, enabling Twitter’s technology to optimize based on your cost-per-install target."
The optimized action bidding option enables marketers to bid on the install rather than the app click. Twitter says beta testing of the option resulted in double-digit percentage decreased in cost per installs when compared to buying on cost per app click (at the same spend level).
Cost per install bidding lets them bid and pay for the app install so they only pay when the campaign drives an actual install. Twitter says this lowered costs by 20-30% among beta testers.
Here's a helpful chart looking at how these options rate in terms of scale and cost efficiency:
The new options are available right away to all advertisers running mobile app campaigns with conversion tracking enabled.
Images via Twitter