Is Google Monetizing Mobile Better Than Facebook?

Here’s a mobile ad lesson for Facebook (NASDAQ:FB). Having seen massive success with its television-style mobile videos advertisements with several app publishers on Apple (NASDAQ:AAPL) iOS, Flurry is now bringing the marketing product to Google’s (NASDAQ:GOOG) Android.

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Just a little over a year after launching the ads, called AppCircle Clips, on the Apple mobile operating system, Flurry hit 100 million views this August. The AppCircle Clips, rich videos that are launched on a user click, allow traditional advertisers to reach consumers at a much smaller cost than TV commercials. With rising tablet use, which is helpful in video viewing, these tools have become an effective and popular advertising and monetization tool.

Simon Khalaf, Flurry’s president and chief executive, said consumers were now accepting mobile video ads in a similar manner to TV commercials, according to GigaOM. “The unprecedented success we’re seeing for in-app video advertising demonstrates how smartphone and tablet consumer behavior closely mirrors that of television viewing, where consumers accept commercials in exchange for their content experience,” Khalaf said.

Flurry said video ads can help developers consistently earn eCPMs of $10 or more. Game publisher Gaia Interactive has calculated that consumers used applications acquired through AppCircle Clips 43 percent more often and played them 23 percent longer per session than those through traditional banner ads. “Flurry AppCircle Clips is a top acquisition channel for Gaia Interactive to build high quality app audiences,” said John Dionisio, Gaia Interactive’s director of marketing and business development. “AppCircle Clips campaigns deliver audiences we care about, while exceeding all user quality performance metrics we track versus our
other acquisition channels.”

Earlier this year, Mary Meeker, a partner at Kleiner Perkins, said mobile ads were five times less valuable than desktop Internet ads. However, videos are proving to be a good way to change that.

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