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Digital Insights ReportMobile Pricing

+2013 – The Mobile Year

Source: Opera Media Works

+Hypothesis

As mobile usage increases into the future we will start seeing higher mobile ad prices as added competition will drive up demand

Source: MediaThirst

+Ad Units Available

Display/ Banner Ads

Video

Social Media

Incentivized

Search

Source: MMA Global

+Mobile Pricing Models

Cost Per Mille (CPM)-cost per thousand impressions-used for awareness purposes

Cost Per Click (CPC)-pay per click-used mostly for testing and behavioral analysis

Cost Per Install (CPI)-pay per acquisition, only pay every time user downloads-used to acquire users

Cost Per Action/Engagement (CPA/E)-pay per action-used to engage users with product

Cost Per View/Completed View (CPV/CV)-pay per view-used to for video

Display

Video

Search

Social Media

Incentivized

Source: MMA Global

+Cost of Ad Units

Display/Banner (CPC = $0.05 - $0.35)

Video (CPV = $0.03 - $0.06)

Social Media (CPC = $0.30 - $0.50)

Incentivized (Cost per download = $0.35 - $2)

Search (CPC = $0.84 & CPM = $4.03)

Source: MMA Global

+Most Requested Mobile Pricing Models: Display

Source: IAB

+Most Requested Mobile Pricing Models: Video

Source: IAB

+

Mobile Pricing Model Insights

The most used pricing model for mobile is CPM

Works best for: visual and branding-oriented campaigns

Why?

Flexibility

Control

Value

Source: 350Media, Adroll.com

+CPM Costs

• According to Forbes, mobile ad prices are rising quickly, by almost 21% on smartphones and 23% on tablets.

Source: Forbes, Mopub

+Ad Bids Per Month

Source: Mopub

+Conclusion

At the end of 2013 mobile ad spend accounted for around 4% of total ad spend in the US and continues to trail the 20% of media time consumers spend on a mobile device.

Some reports show that in 2014 this spend will jump up to 10% but there will still be a disparity between spend and usage time.

We will see rising prices rise on mobile until ad inventory meets demand. When this happens, we will see a leveling out in pricing as more websites become optimized for mobile web advertising.

Source: AdExchanger