Why Facebook Keeps Investing in Enhancing Ad Technologies



LiveRail is one of the top video ad properties in the United States

In the previous part of this series, we discussed how Facebook (FB) enhanced its Conversion Lift product features last quarter. Similarly, Facebook continues to enhance its other ad technologies, LiveRail and Audience Network.

Last year, Facebook acquired LiveRail, which is an online video advertising platform that helps customers monetize their video inventory efficiently. During the 3Q15 earnings call, Facebook mentioned, “LiveRail can now deliver over 90% accuracy on age and gender segments across desktop, mobile web and mobile apps versus a non-target rate of only 31% to 55% when not using LiveRail technology.”

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According to a report from comScore Video Metrix and as the chart below shows, BrightRoll, Google (GOOG), AOL, and LiveRail are the four top US video ad properties in terms of reach. Incidentally, BrightRoll was acquired by Yahoo (YHOO) last year and AOL was acquired by Verizon (VZ) earlier this year. To gain diversified exposure to Verizon, you can invest in the iShares U.S. Telecommunications ETF (IYZ). IYZ invests about 10.6% of its holdings in Verizon.

Facebook expanded the Audience Network ad formats

Audience Network is an ad program that allows a company to extend its advertising campaigns from the Facebook website or Facebook or app to millions of other mobile apps. Earlier this year, Facebook opened Audience Network to its 1.5 million advertisers to extend online campaigns across the mobile space. In response to Facebook’s move, Twitter (TWTR) released a new developer platform, Fabric, to help create and monetize apps.

Audience Network benefits not just Facebook, but developers too. By helping developers manage ad inventories, apps can be more readily monetized. Last quarter, Facebook expanded the Audience Network ad formats that advertisers can add to their mobile apps.


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