According to a data firm that tracks mobile campaigns, Instagram is Facebook’s biggest app advertiser and we totally agree. The social platform represents up to 5% of app-install ads on its parent social network, Facebook.
However, it was in the third quarter of 2016, that Instagram became the number one app advertiser for its parent company. Before then, it was just among the top 10 app advertisers of the company.
This could be attributed to its constant running of campaigns on Facebook, all in a bid to drive users back to the app. This grew Instagram from 100 million monthly users in 2013 to 500 million monthly users in 2016.
Advertising on Facebook could be a huge challenge for any non-Facebook company app advertiser, as they are considered competitors. Any ad that will negatively affect the company’s relationship with her users or promote activities, content, and services clashing with their competitive position and interests can be outrightly rejected, disapproved or removed, depending on how its policy dictates.
This cannot be considered an unusual policy though, as most media companies too have policies that impede their rivals from purchasing ads.
Facebook has a very strong online dominance, especially in the mobile app ad market, as it is the main source of growth for startups to build their audience. Though Facebook hasn’t made known how much of her ad revenue is generated from app-install campaigns, we know it is a substantial piece of its business.
The competition for developers’ money keeps growing for Facebook, as Google seeks to expand her app ads product and Apple introduces paid search ads in her App store, and with Pinterest and Snapchat (which are both startups) offering app-install ads too.
While Twitter is barred from advertising on Facebook and can’t run app-install apps on the platform, Facebook (and Instagram) can buy app-install ads from Twitter. Not all rivals want to spend on each other’s platform probably because they don’t want their result and consumers information exposed to their competitors.
If Facebook had allowed, Twitter would run app-install campaigns on Facebook, not regarding the fact that their consumers and result information will be readily available to Facebook.
That’s because advertising on Facebook is quite huge because you win by growing your users, not minding that Facebook has some access to your users and data.