Mobile Advertisement
We spoke a lot about advertisements on search engines, but what about other forms of advertisement? Advertisements on the web are so prominent, but what about mobile advertisements? The effectiveness of small banner ads on the phone initially didn’t seem to grab as much attention as those on the desktop and they are harder to “promote” because of the difference in how cookies are determined on the desktop and mobile devices. However, “people will do almost everything on their phone that they do on their desktop” opening up a large platform for advertisements. Therefore, Medialets wants to convince producers that mobile advertisements are doing just a well as desktop advertisements and “that [the] yawning gap between the time people spend on mobile devices and the relative ad spending to reach them on those devices may finally start to narrow” (Hof).
First let’s look at the ways that mobile advertisements prices are determined. The way of determining an ad’s cost per click is determined on several different things that are different from desktop advertisements because of the nature of mobile advertisements. The first thing that we look at is the CTR – click through rate – which is defined as the number of clicks divided by the number of impressions. Then there is eCPM, which is a key metric for mobile monetization that is used by app developers and publishers. It allows for a common metric unit across different types of mobile advertisements and is defined as “the advertising revenue generated per 1,000 impressions” and calculated by multiplying the quotient of total earnings divided by total impressions (Cooper).
The type of handheld mobile device and whether it is an in app advertisement or an advertisement in a mobile webpage also help determine the click-through-rate of advertisements. Medialets specifically found out that in-app advertisements received 0.58% click-through-rates, while advertisements on mobile webpages only receive 0.23% CTR. Similarly, specific types of advertisements, such as traveling, entertainment, and dinning advertisements, tend to have higher CTR on mobile devices, specifically 60% higher than other retail advertisements, because of the nature of mobile devices these are the types of advertisements that they look for. Automated advertising known as programmatic advertisement is growing rapidly in mobile devices, while “advertisements run by exchanges and DSPs aren’t always the most effective” (Hof).
Mobile device advertisement is still developing and there is still so much potential growth for mobile-optimized advertisement formats, such as interactive rich media and native advertisements, improving targeting, and advertisers to create more effective advertisements for this new platform (Hoelzel).
Links:
- http://www.businessinsider.com/mobile-is-growing-faster-than-all-other-ad-formats-2014-10
- http://www.mobyaffiliates.com/blog/mobile-advertising-explained-ctrs-ecpms-ad-formats-average-revenues/
- http://www.forbes.com/sites/roberthof/2014/08/27/study-mobile-ads-actually-do-work-especially-in-apps/#26f42df427fb