Two co-founders of MyMiniLife, a startup key in creating Farmville and later acquired by Zynga, have now launched a new app-marketing product called Toro (under Red Hot Labs). Toro is focused on helping developers and the like more easily manage and optimize app install advertising campaigns on Facebook. Toro is able to generate a large array of ad variations for a given campaign, A/B test these campaigns to determine the winning ads, and subsequently adjust budgets in real-time so money is used in an optimal fashion. This means less time managing and optimizing campaigns for the developers and product team. In many ways, Toro is the Google Adwords for Facebook (although it offers a narrower use case).
The duo's focus on building a self-serve ad-tech product for Facebook versus other platforms follows their recognition of the ability to (easily) target users on Facebook given the wealth of user data. Next, the team looks to expand beyond driving app installs to building user engagement tools off of Toro in the near future. Toro has already secured clients covering the gaming industry, social discovery services, and mobile search and seems to be a promising tool as it claims to be able to cut user acquisition costs for a mobile user by 40 percent. Even more exciting are the fees being charged to customers, which are arguably lower than competitive products including Facebook's Ad Manager and Native Tools. The current revenue model for Toro follows a usage-based fee model, charging ~5% of marketing spend beyond a $1000/mo threshold. Customers can visit Toro's website today and try the product for free.
The company is also tapping into a mobile advertising market that is growing quickly, with companies spending more than half of their mobile ad budget on Facebook alone; Facebook experienced a 41% increase in mobile ad revenue in the last quarter. Only time will tell how quickly Toro takes off, but the company faces a promising start with strong VC-backing.
Source: Techcrunch; VentureBeat; usetoro.com
The duo's focus on building a self-serve ad-tech product for Facebook versus other platforms follows their recognition of the ability to (easily) target users on Facebook given the wealth of user data. Next, the team looks to expand beyond driving app installs to building user engagement tools off of Toro in the near future. Toro has already secured clients covering the gaming industry, social discovery services, and mobile search and seems to be a promising tool as it claims to be able to cut user acquisition costs for a mobile user by 40 percent. Even more exciting are the fees being charged to customers, which are arguably lower than competitive products including Facebook's Ad Manager and Native Tools. The current revenue model for Toro follows a usage-based fee model, charging ~5% of marketing spend beyond a $1000/mo threshold. Customers can visit Toro's website today and try the product for free.
The company is also tapping into a mobile advertising market that is growing quickly, with companies spending more than half of their mobile ad budget on Facebook alone; Facebook experienced a 41% increase in mobile ad revenue in the last quarter. Only time will tell how quickly Toro takes off, but the company faces a promising start with strong VC-backing.
Source: Techcrunch; VentureBeat; usetoro.com
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