Mobile banner ads 120% more effective than video for ROI

Anne Freier

In Mobile Advertising. January 28, 2019

Mobile is predicted to be responsible for 72% of growth in online video ad expenditure, according to mobile app marketing company Liftoff’s latest Creative Ad Index report.

However, the data also shows that marketers have not yet made good use of the format on mobile programmatic.

Although video ads have proven successful in terms of engagement, in-app actions still outpace them. Indeed, video ads cost nearly double ($12.16) when compared to native ($7.65) and banner ads ($6.18). However, it is 120% less cost-effective than cheaper banner ads. Similarly, native ads were found to be 84% more cost-effective in terms of their performance-to-price ratio.

“Video ads are a rich medium with incredible potential, but our data suggests that one reason the promise of this exciting format exceeds the current results in the mobile programmatic environment is that many marketers are still repurposing social media and TV ads for mobile use, limiting their success,” explained Mark Ellis, CEO of Liftoff.

“While advertisers have traditionally made use of the format to tell complex stories that engage human emotions and senses, we’ve found that for mobile programmatic advertising, brevity trumps detail — and concise, less-than-15-second, non-skippable videos work best.”

When it comes to post-install engagement, banner ads were found to outperform native ad formats on Android. At $3.73 per post-install action, banner ads are 22% cheaper than native ads ($4.55 per action) whilst providing a higher impression-to-install rate of 38.1% compared to 35.8% for native.

Regardless of format, mobile app advertising is expected to grow rapidly in 2019 as App Store spending is predicted at a record $1.22 billion.