Mobile video in-app ad click-through rates are 7.5x higher than display ads

In-app advertising has proven effective for many mobile marketers, but there are specific strategies advertisers can follow in order to maximise returns.

Although video in-app ads tend to be more expensive than display ad formats, their average click-through rates are 7.5x higher than display ads.

That’s according to the latest report by in-app ad platform Smaato together with mobile app marketing company Liftoff, which analysed three trillion ad requests through the Smaato platform in Q1 2019 and 80 billion ad impressions across 33 million installs on the Liftoff platform.

The report also found that banner ads have the lowest overall cost per mille (eCPM), but also have the lowest CTR. Interstitial display ads cost 4.6x more than banners, but have a 18x higher CTR. Meanwhile, native ads provided CTRs which were 8.3x higher than banners.

In terms of post-install actions, Liftoff measured that native ads had the highest conversion rates among display advertising formats. Although they fell short when it comes to engagement, banner ads scored an 8-point greater install-to-register rate than interstitial display ads.

Video ads enable advertisers to tell stories in a more engaging manner, rendering them more effective ad formats compared to display ads (unsurprisingly).

Although mobile video ads tend to be costlier than display formats (8.5x), they result in higher engagement rates (7.5x).

Cost per install was an average 40% higher for video compared to display across the Liftoff platform.

Post-install action rates were also improved for video ads with install-to-register rates of 35.1% compared to 28.5% for display ads. Install -to-purchase rates were 4.8% for video and 4% for display ads.

Rewarded video formats emerge as the clear winner in terms of performance. The format’s eCPMs were 86% lower than the video average.

Due to their opt-in nature, 90% of publishers prefer rewarded video ads in terms of user experience. In addition, 70% of users prefer the experience of rewarded video ads.

“Amidst the backdrop of in-app advertising’s massive growth, we want to educate advertisers and app marketers on the best ways to optimise their budgets and improve the performance of their campaigns,” said Dennis Mink, VP Marketing at Liftoff. “Although video ads tend to cost more than traditional display, the report proves that they also perform better throughout the funnel, making them well worth the investment to engage high-quality users.”

Meanwhile, conversion rates of rewarded video ads are comparable to average video ads, but still exceed display rates.

iOS ads tend to cost more than Android formats at an average 2.8x higher CPMs.

However, higher costs may be worth it as video CPIs tends to be 1.9x higher on iOS compared to Android.

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