Tinder has recently signed a partnership with Google Ads, formerly known as Google AdWords, to start serving programmatic ads. These ads will show on the Tinder app, when users are swiping their possible love interests.
This partnership allows advertisers to pay for impressions at a fixed price with ‘guaranteed deals’ and will be sold by Google. To hold these new ads, Tinder have implemented an ‘Ad Impression’ placement on the app to be filled.
Last year, Tinder signed a similar partnership with Facebook to sell ads on the app network. However, ROI has proven to be low from this.
What are Programmatic Ads?
Programmatic ads involve the use of automated software to purchase digital ad space in ‘real-time’. The ads are server to a specific user when they are looking at specific content online.
How do Programmatic Ads work?
Similar to standard Google Ads, the ads will enter an auction when the user is found and the advertiser with the highest bid wins the auction, meaning their ad is shown.
Why have Tinder started using Programmatic Ads?
Although it is a less commonly known form of ad bidding, Programmatic Ads are growing in population. Google have predicted that by 2019, over 60% of digital ad spend will be allocated to Programmatic Ads. Take O2 as an example, who rolled out 1,000 different video ads to reach users depending on their location, mobile device and demographic. This would not have been achievable without Programmatic Ad auctions.
Tinder has likely struggled previously in getting an ROI from their app. Their main source of revenue comes from Paid Subscriptions to their dating services. This Programmatic Ad auction ads a new format where an ROI can be made.
Furthermore, Tinder’s partner, Facebook, is set to release their own dating service which will heighten competition for Tinder. This could be the reason for Tinder moving to an agreement with Google.
However, to contradict this, Tinder have stated this partnership is less about ROI, but more understanding user behaviour and the way this changes depending on how often an ad is seen.
What are the pros and cons of Programmatic Ads?
The benefits of this ad type include; being able to buy impressions at a fixed price, having your ad shown to a user when they are looking at specific content and the auction is easy and flexible for advertisers.
However, the disadvantages range from the rise of Ad Blockers and data security threats. But as with every advertising method, there are good and bad points to consider.