Mobile Advertising Explained – CTRs, eCPMs, Ad Formats, Average Revenues and More

James Cooper | October 3, 2013

Mobile Advertising

mobile advertising explained
Our friends over at Appflood have been busy blogging some great information and data covering mobile advertising.  They’ve explained many of the key concepts including:

These posts includHere’s a brief summary below of some of their recent posts and you can find them all over at the Appflood blog.

What is an average mobile ad click through rate?

Click through rate is a key metric for all performance-based mobile advertising and defined as clicks divided by the number of impressions: CTR-formula-AppFlood
Appflood have used the data from their network to provide a view on the average click through for different types of mobile ads.  This data is absolute gold-dust as it’s very rarely published.  The data shows that click-throughs range hugely from over 12% to 0.2% depending on the format:

  • Banners – 0.23%
  • Interstitials – 5.7%
  • App Lists (also known as ‘Offer Walls’) – 7.14%
  • Panels – 12.6%

This really is useful data and benchmark information for anyone involved in mobile advertising or mobile marketing and for the full analysis Read More>>

What is eCPM ?

eCPM is the key metric when it comes to mobile monetization for app developers and publishers.  It’s a way of providing a common metric across different types of mobile ads (e.g. CPC, CPA, CPM) that you might be running.  There’s no point having a high cost per click (CPC) if no-one is clicking and very few ads are being served for example. Appflood define eCPM as “effective cost per mille” or “the advertising revenue generated per 1,000 impressions” and offer up an equation to work this out: ecpm-equation
They go into more details about things to be aware of when analysing eCPM and some of the pitfalls to be aware of Read more>>

Which mobile ad formats generate the highest average revenues for app developers?

Gone are the days when mobile advertising was all about small rectangle banners.  These days there are a plethora of new ad formats which offer way better monetization for developers and ad performance for media buyers.  However, it can be complicated to understand the pros and cons of the various options and their relative performance.  Most developers want to know how much they can expect to make on average in terms of revenues from their inventory.  Luckily Appflood have come through with some great data that helps spread some light on this issue.
Their team have analysed a range of data from their network providing average earnings on a CPC and CPI basis across a range of publishers. CPC earnings from 100k impressions, ranged from over $1024.40 for interstitials to just $9.60 for banners:
For CPI (cost per install) based advertising publisher earnings ranged from 0 (banners) to $96 for interstitials.
Again this data is like gold-dust in the mobile ad market right now and is almost never released.  It’s hugely valuable for anyone modelling mobile ad revenues or looking for benchmarks or ways to drive up monetization or model mobile ad campaigns Read More>>

Why do direct mobile ad deals make sense? 

The vast majority of mobile advertising is traded on a ‘blind’ networked model where advertisers are just paying a set cost per click or cost per install.  Increasingly, more inventory is being traded on a real time basis, impression-by-impression, however there’s another model – direct deals which can also be very worthwhile for advertisers and developers.  If you can identify a traffic source that performs well for you in terms of conversions then doing a direct deal to get more of that traffic (and less of the other traffic that doesn’t do as well) can make a huge difference to your ROI.
Appflood have provide a full guide to how to do direct deals in their system and why and when this can make sense.  This can be a really successful strategy if you get it right so it’s well worth reading up on it Read more>>
That’s it for now.  Thanks to Appflood for providing such useful analysis and for opening up their data to the mobile advertising community like this.
You can keep up to date with all of Appflood’s content over on their blog or check our their newsfeed on the Appflood profile in our directory

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