Mobile Advertising Costs

Six Mile Media

Mobile Advertising Costs

So, how do we get to decide a reasonable ad budget?

OR

How much does mobile advertising cost?

Determining the right spend is definitely not as simple as it sounds. According to a report by emarketer for mobile internet ad spending worldwide, it has grown from 19.20 billion dollars in 2013 to 195.55 billion dollars in 2019! That’s gigantic!

So, how do we get to decide a reasonable ad budget?

OR

How much does mobile advertising cost?

Determining the right spend is definitely not as simple as it sounds. According to a report by emarketer for mobile internet ad spending worldwide, it has grown from 19.20 billion dollars in 2013 to 195.55 billion dollars in 2019! That’s gigantic!

mobile advertising spend
Mobile Internet Ad Spending Worldwide, 2013-2019 ©emarketer.com

Tracking mobile ad expenditures is done via methods like CPS, CPA, and CPM. 

Cost per Click

Advertising networks usually ask advertisers to bid for their CPC. A smaller niche usually receives a higher price for a single click. 

Cost per Action

Ad formats like banner ads or video ads do not really focus on clicks to get conversions. Sometimes, companies build their campaigns with objectives like “x” number of app installments, “x” number of sign-ups, etc. These is the CPA. 

This mode of payment is also dependent on the niche and the quality of the ad created. CPA is the total ad campaign cost divided by the number of actions received.

Cost per mile OR Cost per thousand impressions

This type of payment mode allows to bid for impressions, so they pay for the number of users viewing the mobile ad, and not for the clicks or conversions. 

Not all advertisements are focused on getting immediate conversions or actions. A mobile ad may sometimes solely target brand awareness. These are the instances where CPM or cost per mile modes work best. 

Mobile advertising companies factor their costs vary based on the industry, ad delivery channel, targeted location, size of user group being targeted, mobile device (operating system) and other factors. 

Following are some of the crucial data points for mobile advertising costs:

  • 2017 global mobile advertising spend- 107$
  • Average CPC for the year 2016- $0.27 (ranging between $ 0.03 in Bulgaria to $0.51 in Denmark)
  • Average iOs eCPM- $5
  • Average Android eCPM- $2
  • Average Banner ad format CPM- $1
  • Average Interstitial Ad format CPM -$3.5
  • Average Video Ad format CPM -$3
  • Average Native Ad format CPM- $10

(Source: https://www.buildinary.com/news/mobile-app-advertising-rates/ )

 

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