Facebook has finally confirmed plans to launch an advertising auction to app developers, with the resulting ads inserted into the newsfeeds of smartphone users.

The service first trialled in August and saw consistent results, with click-through rates of one to two per cent, while participating developer TinyCo reported conversion rates of over 50 per cent. Developers bid somewhere in the region of half a dollar per click, which will take the user through to the Apple or Android marketplace to download the app. Facebook’s information access also allows adverts to be specified towards a particular gender or even location, using the app’s location sharing service.

Facebook’s latest financial reports have shown a growing need for a new marketing strategy, especially as more users access the site purely from mobile devices. The new scheme will allow Facebook to push back against growing competition from Google, and present app developers with another way to market their programs. The new auction system provides a wider scope for companies to reach a larger audience, and the perfect complement to more traditional means of advertising used by large app developers such as Amazon and Barclays.