Mobile video ads had some of the lowest ROI in 2020

Anne Freer | January 29, 2021

Mobile Advertising

Apps that drive more value like shopping and finance apps have seen better retention rates during the pandemic, according to the latest report from Liftoff.

Costs for ads declined between 75% to 85% for shopping apps across most formats. The highest drop was noticed for interstitial ads.

In finance apps, banner and native ad costs saw a steep drop of around 91%. Video and interstitial formats dropped 72% and 62%, respectively.

The new report also highlights that customer acquisition costs on Android were much lower compared to iOS where they were 3x higher.

CPAs for traditional banner ads on iOS came in at $37 compared to Android’s $10.

Interstitial ads and banner ads performed 52% and 22% higher on Android devices, respectively. Native ads scored better on iOS (10%).

“With IDFA user tracking changes on the way, there’s an opportunity for Android to drive extra value in the near term given its relative stability,” explained Liftoff CEO and co-founder Mark Ellis. “The new iOS policy doesn’t discount iOS by any means, and marketers will still be able to deliver successful campaigns in a post-IDFA world working with the right partners — but the data shows that this year is putting Android neck-and-neck with iOS, and could offer some great value for marketers.”

Meanwhile, video ads were a good investment last year, driving 60% higher purchase rates than banners.

But in 2020, the format saw some of the lowest return on ad spending. It’s also one of the priciest formats, but it may be a matter of waiting after COVID-19 lockdowns come to an end to make larger investment into mobile video.

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