Mobile Advertising Rates Come Down Significantly

We all know how effective mobile advertising is. What most people don’t know is that it is cost effective as well. The CPI (cost per impression) rates for mobile advertising have come down quite a bit of late. Experts believe that this will make mobile advertising even more appealing to businesses around the world. A couple of reasons could be attributed to this phenomenon.

1. The first, and the most obvious, reason is the economy. Bad economy has taken its toll on many a thing across the country and mobile ad rates are not an exception as well.

2. The proliferation of mobile applications, especially the social media applications, is a very important reason. Mobile users tend to spend more time on these applications on their high end phones and, needless to add, this is very good news for mobile advertisers.

As a result, the average CPM (cost per thousand impressions) has come down to $15 as opposed to $20-25 last year. In fact, until last year, it was not uncommon to see $50 CPMs. Now, it is safe to conclude that they are history.

Industry experts say that mobile advertising, as an industry, has matured a lot in the recent past. Also, ever since mobile advertising started to attract the attention of mainstream media, there has been an influx of a huge number of companies like never before. This has made the concept of arbitrary pricing obsolete and has paved way to a systematic pricing.

While some people point out that that mobile advertising is still somewhat costlier than online advertising, the CTR (click through rates) tells a different story. The average CTR for mobile is in the range of 1.5% to 2% whereas it is only around 0.15% for online. So, despite the cost difference, mobile advertising is significantly more effective than online advertising or any other type of traditional advertising for that matter. Most importantly, as more and more companies enter the market and as the inventory increases significantly, the prices will come down even further. The way I see it, if things continue this way, then sooner than later, mobile advertising will become the most sought-after type of advertising.

Categories: Cell Phone Advertising.

0 comments.