The average Return on Ad Spend (ROAS) in 2016 for mobile campaigns grew 30% compared to 2015 and almost 50% when compared to 2013.
That’s according to new research from identity solutions provider, 4INFO, which just provided its third annual benchmark report based on 248 studies and 138 brands to help advertisers evaluate their ROAS. The average ROAS for advertised items was $2.82, marking a 30% increase compared to 2015.
Tim Jenkins, CEO of 4INFO, explains that advertisers are increasingly linking their digital impressions to instore sales transactions.
“What’s more, they’re demanding it. And in a world filled with bots, ad blockers, tightening media budgets and increasing scrutiny of digital ad effectiveness – closed-loop measurement offers advertisers a level of transparency, insight and assurance that their media dollars are making an impact,” he adds.
Mobile now accounts for 71% of digital minutes in the US alone. Shoppers have begun to consume more digital content via their mobile devices and advertisers have shifted their budgets accordingly.
The increasing demand for mobile video ad inventory has led to a shortage of inventory, resulting in a higher media cost that is double or more the price of a banner ad.
According to the research, 30% of campaigns ran video in 2016 and though costs were higher, they were offset by a much greater sales lift. Overall ROAS for video ad campaigns was 19% higher.
Although CPMs average 25% more, video campaigns outperformed non-video ads by almost 50%.
In addition, 4INFO found that campaigns which included a promotion or coupon outperformed other ad content by almost 80%.
Other findings from the report included that top-performing campaigns produced an average ROAS of $5.32, which is twice the average. Brands within the baby, over-the-counter, and health and beauty categories were the top performers in terms of ROAS.
The report concludes:
The primary trend was evident – Mobile ad campaigns are reaching an increasing number of consumers and generating ever-higher returns. […] If you wish to compete, it’s more essential than ever to let accurate measurement and industry benchmarks guide your ad strategy. You shouldn’t be in the dark about whether your digital campaigns are translating to offline sales.