Google app ad rates are considerably cheaper than Facebook’s

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Roadside assistance app, Honk, recently discovered that with the launch of Google’s universal app campaigns (GUAC), its app ads cost a quarter to a third of the price on Facebook.

Google universal app campaigns

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Jacob Honig, VP of marketing, Honk, explains:

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“We’ve gone from exclusively spending on Facebook app installs. Now, 50% of our total marketing spend is going through […] GUAC.”

Honig says that Honk now spends half its marketing budget on Google, paying $1-$3 per 1,000 impressions. Facebook is significantly more expensive at a cost of $9-$12 CPMs. The high price is a reflection of just how many app advertisers are using Facebook to market.

Since using Google universal campaigns, Honk has doubled its user base and raised $14m in funding, playing a critical role in the company’s growth. However, Honig is not discussing app install rates on Google, because:

“[t]here’s just more competition for eyeballs, so if any conversion numbers are proven, good marketers jump early on new products. You’ve got to get going before most others are wise to it.”

App install ads already account for $3bn in spending this year and 10% of US mobile ad spend. Apps greatly rely on advertising to reach new audiences. The case of Rdio filing for bankruptcy this week highlights this as the company owes Facebook $500m in unpaid ads.