What are the Average Mobile Advertising Rates for Apps?
One of the core metrics for digital advertising, and mobile advertising specifically, is CPM, which stands for Cost-Per-Mille. Essentially it tells an advertiser how much a thousand impressions of his banner cost and this number various per industry, ad delivery channel and geo location. Despite the overall trend of mobile advertising professionals to be focused on CPA metric, stands for Cost-Per-Action, which measures a cost of specific action that people take with a digital product, CPM metric is still relevant and important. In this article we want to bring up the industry statistics to highlight CPM for various channels, industries and locations.
Key Mobile Advertising eCPM data points:
- 2015 mobile Internet ad spending worldwide – $69 billion
- average mobile eCPM of July 2016 – $4
- lowest iOS eCPM – $5
- highest iOS eCPM – $10
- lowest Android eCPM – $1.25
- highest Android eCPM – $6
- highest Facebook ads regional eCPM – $1.8 (Sweden)
To start with, let’s dig into an overall trend for total Internet ad spending worldwide. According to eMarketer data from March of 2015, the total spend increased from $19,2 billion in 2013, to $69 billion in 2015. According to the same source forecast, we should expect more than $100 billion ad spending by the end of this year and up to $200 billion by 2019. The overarching trend is that even though there is a significant growth but the growth rate is in decline, in 2013 it was 118% compared to the previous year, in 2016 it’s only 48% and by the end of 2019 it’s projected to grow only 17%.
2013-2019 Mobile Internet ad spending worldwide
eCPM rates vary from one ad network to the other, let’s look at the top ad networks iOS eCPM for 2015-2016 period. Overall we can see the trend for eCPM to go down, from about $6 in March of 2015, to about $4 in July of 2016. eCPM rates of AdColony, InMobi, AppLovin and Chartboost are clustered between $2.5-$5.0 range per 1,000 impressions.
Top mobile ad networks iOS eCPM, 2015-2016
When we look at the numbers for Android eCPM for the top ad networks, we see them clustering below $2.5 per a thousand impressions. The reason for Android eCPM being significantly lower than iOS, $2.5 against $4, is that Android owns a bigger part of the mobile market and hence the volume of ads is bigger, meaning competition is higher. And when there is a higher competition, eCPM rates should be lower.
Top mobile ad networks Android eCPM, 2015-2016
Now let’s consider the lowest and highest eCPM rates for both iOS and Android platforms in US. The lowest end for iOS presented by AppLovin ad network. After a sizable bump in December 2015 – January 2016, which we can attribute to the holiday season, we see a constant decline in rates and by July 2016 eCPM has reached below $5 point.
iOS eCPM in US (Applovin data)
The highest end of eCPM rates for iOS belongs to AdMob ad network operated by Google. As of July 2016 we see the eCPM rate has reached $10 point and throughout the second part of 2015 and during this year the rate has been slightly fluctuated around this $10 point as well.
iOS eCPM in US (AdMob data)
Now it’s turn to review Android eCPM rates lowest and highest end. Among before mentioned six top ad networks, in July 2016 InMobi offered the lowest eCPM rates for Android OS, equaled to $1.25 per 1,000 mobile banner impressions.
Android eCPM in US (InMobi data)
The highest end of Android eCPM belongs to AdMob ad network as well. As of July 2016, 1,000 mobile banner impressions costed about $6. Since April of 2015 to July of 2016 the Android eCPM rate is being fracturing around $5 point.
Android eCPM in US (AdMob data)
Next up are ad rates of the biggest player in the mobile advertising market – Facebook. Facebook ads rates, just like with advertising in general, are tied to local economies and and a size of of local digital markets. Among a number of European, Asian, Latin and North America countries the highest CPM rates are in Sweden – $1.8, Denmark – $1.7 and Taiwan – $1.5.
2015 Facebook Ads CPM, by country
And finally, let’s consider CPM rates for Facebook ads in US for various industries, specifically CPG (stands for Consumer Packaged Goods), E-commence, Gaming, Retail and Travel. An average CPM all these industries equal to $7, with Travel industry topping the rest, $8 per 1,000 views. The fact that E-commerce and Retail cost are almost equal reveals an overall trend – many retail companies are moving towards e-commerce and place ads on Facebook both ads for their physical stores and their online extensions. Given the fact Facebook dominates the advertising industry and mobile constitutes the bulk of ad spending, we can approximate this trend on mobile advertising as a whole.
2016 US Facebook Ads CPM, by industry
Mobile advertising eCPM rates are different for various industries, geo locations and specific mobile ad networks. The data from the top mobile ad networks shows the overall trend for eCPM to go down. Mobile internet ad spending continues to grow worldwide but with ever decreasing rate.