Mobile Advertising Business Models

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Mobile Advertising Business Models

Mobile Advertising Business Models

All mobile ad networks provide users with several types of business models to run ad campaigns with. There are 5 major types – CPM, CPC, CPI, CPA and CPV.

 

Featured Mobile Ad Networks

 

With CPM (cost-per-mile) type, an advertiser is charged each time her or his ads are shown 1,000 times (so-called ‘a mile’). It’s the best business model for publishers, because it allows to make money every time an ad was displayed. If they have a stable predictable traffic, it allows publishers to forecast their revenue. The down side is that they may loose some extra revenue, if their app or website audience is really interested in a product or service they advertise. For that case CPC model would allow them to make more money.

 

With CPC (cost-per-click) model an advertiser is charged for each click made on mobile ads. This model works better for advertisers, because it allows them to pay only for instances when an interest to their product or service is explicit (their ads were clicked) and, as mentioned above, in some cases may work for publishers as well. For a publisher this model always presents a certain risk of him serving lots of ad impressions for free.

 

CPI (cost-per-install) model implies that advertisers are charged only when a click on their ads resulted into an actual mobile app install. It’s a specific case of a more generic CPC business model. Cost-per-install price has become one of the most important metrics for mobile app marketers to measure and keep track of, because essentially it represents a price they pay to acquire customers and hence it should be factor into ROI calculations.

CPA (cost-per-action) type is more advanced version of CPI, when an advertiser is charged for specific action (in-app sale, subscription, form submit, sign up and more) users take inside an app that is advertised on a mobile ad network. This type of a business model presents more opportunities for publishers to monetize their inventory on one hand and more options for advertisers to grow their business on the other.

And finally CPV (cost-per-view) type is applicable to mobile ad networks that provide advertisers with video ad campaigns. With this model, advertisers are charged for each instance their video mobile ad was viewed. With the current pace of a video advertising growth, this model becomes more and more popular.
 

Types of mobile advertising networks

There are 5 major formats supported by top mobile ad networks – interstitial, banner, native, video and offer wall.

Interstitial ads

A full screen ads that cover the interface of their host application. This mobile ad format is most frequently used to display an ad between different app screens and it’s quite often displayed between different levels in a mobile game app.

Banner ads

A classical static or animated image ad, which is placed inside an app’s interface. Such ad may advertise a third party product, other digital or physical goods, as well as an option to expand an app’s functionality.

 

Native ads

Either a banner image or video ad that matches the form and function of the app interface it’s displayed in. The core concept of native ads to mimic an app’s interface to be least intrusive compared to other ad formats.

 

Offer Wall ads

It is an ad unit within a mobile app that provides end users with lots of offers to engage with. The most frequent use case is mobile games, where offer walls may either advertise third party games or a series of games from the same game developer.

 

Video ads

Video ads consist of a short, usually up-to 60 seconds, video clip to advertise products and services. This mobile ad format is most often used within media apps. There are two major types of video ads – in-stream and out-stream. With in-stream type, video ads are displayed full-screen before, after and within video content that is streamed inside an app. Without-stream type video ads are displayed on a web page, displayed inside a mobile app.

Mobile Ads Reporting

An advertising campaign performance data reporting is one of the key components that is crucial for its success. This information is provided by mobile ad networks to advertisers via an online dashboard. It includes data on such parameters of ads performance as number of impressions, clicks, installs, video ad views, platform, country, ad format and so on.

Mobile Ads Targeting

There are number of parameters that allow to narrow down a mobile ad campaign reach to a specific audience. These parameters are called targeting options, there are a number of such options but the majors are the following:

Geo

It allows to narrow down an ad campaign within a specific country or region. It enables mobile marketers to advertise a product or service that is relevant only within a specific region.

Device 

 It allows to show ads on specific models of mobile devices only. This type of targeting lets advertisers to display ads on devices with a specific screen size and other hardware requirements, which allows to avoid a mobile ad experience degradation.

Carrier

With this option, it’s possible to show ads only to mobile users, who are served by a specific mobile carrier. It presents advertisers an opportunity to display ads to mobile users, those mobile carrier provides a better mobile signal reception in a specific area.

OS It allows to show ads on mobile devices running specific operating system or even particular versions of OS. It gives advertisers a benefit of displaying ads to mobile users on devices that are best to display those ads software wise.

Connection By applying this targeting option, it’s possible to show mobile ads on mobile devices when they are connected to the Internet either via Wifi or 3G/LTE connection.

Interests Mobile ad network that collect mobile users data and build their profile allows to narrow down an ad campaign on an audience segment with specific interests only.

Gender This option allows to narrow down an ad campaign to mobile users of a particular gender. Naturally, just like with any kind of advertising such targeting is aimed to market goods specifically to females and males.

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