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Mobile ad costs are climbing
BI Intelligence
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The costs associated with mobile advertising are climbing, according to Fiksu index data from October.
The indexes, which measure the cost per thousand impressions (CPM) as well as the average cost per purchaser (CPP) across both iOS and Android platforms, showed significant increases during the month of October. CPM growth for iOS and Android reached 26% and 6%, respectively, while the CPP index showed growth of 40% on iOS and 65% on Android. Moreover, it looks like the increases have staying power, indicating that mobile advertising prices will be up over the holiday period.
Here are the key takeaways from the data:
The launch of the iPhone 7 is likely behind the hike in mobile ad spending for iOS. In the week the new device hit the market there was a surge in ad spend as marketers attempted to get in front of new users on the iOS platform.
Samsung’s exploding phones may be behind the dip in mobile ad spending during September. Android’s CPP Index fell drastically from 215 in August to 111 in September. However, that number surged quickly in October to 183, Flurry notes.
Overall, Android is becoming an increasingly valuable platform for advertisers.Marketers are finding it easier to target users who are more likely to make a purchase on the Android platform than on iOS, leading to the lower CPP Index. This is an important metric considering that such a small share of the app user population actually makes purchases.
Lastly, the report notes that mobile advertisers should be aware of new innovative ad tech on the market, such as playable ads. These highly engaging advertisements also typically carry a higher CPM than static ads. Nevertheless, the effects of the higher engagement playable ads will result in lower CPP across both platforms.
Mobile marketers will need to keep their eyes on these rising costs as they try to effectively and efficiently reach their target audiences.
Jessica Smith, research analyst at BI Intelligence, Business Insider's premium research service, has compiled a detailed report on mobile marketing that takes a close look at the different tactics being used today, spanning legacy mobile technologies like SMS to emerging capabilities like beacon-aided location-based marketing. The report also identifies some of the most useful mobile marketing technologies that mobile marketers are putting to good use as parts of larger strategies.
Here are some key takeaways from the report:
As consumers spend more time on their mobile devices, marketing campaigns are following suit. Mobile ad spend continues to lag mobile time spent, providing an opportunity for creative marketers.
Marketers should leverage different mobile tactics depending on the size and demographics of the audience they want to reach and the type of message they want to send. With all tactics, marketers need to respect the personal nature of the mobile device and pay attention to the potential for communication overload.
Mobile messaging — particularly SMS and email — has the broadest reach and highest adoption among mobile users. Messaging apps, relative newcomers but gaining fast in popularity, offer more innovative and engaging outreach options.
Emerging technology, such as dynamic creative optimization, is breathing new life into mobile browser-based ad campaigns, but marketers should keep an eye on consumer adoption of mobile ad blockers.
In-app advertising can generate high engagement rates, especially with video. Location-based apps and beacons offer additional data that can enhance targeting capabilities.
In full, the report:
Identifies the major mobile technologies being used to reach consumers.
Sizes up the potential reach and potential of each of these mobile technologies.
Presents an example of a company or brand that has successfully leveraged that mobile technology to reach consumers.
Assesses the efficacy of each approach.
Examines the potential pitfalls and other shortcomings of each mobile technology.
To get your copy of this invaluable guide to the world of mobile marketing, choose one of these options:
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