Factors affecting the cost of mobile advertising include the purpose of the ad, target market, supply and demand, channels and networks, payment method, and device type. The ad network chosen is a significant factor, with blind networks being the least expensive and premium networks being the most expensive. The type of ad and device targeted also affect cost.
As with any form of advertising, there are a variety of factors that affect the cost of mobile advertising. The purpose of an advertisement, the target market, along with supply and demand are typical factors affecting the value of any marketing campaign. Channels and networks, or the destination of an ad, are more specific to mobile advertising with some channels costing more than others depending on their size. Another factor that affects the cost of a mobile ad is how a marketer chooses to pay for ad clicks and whether the advertiser is looking to build a brand. The type of devices targeted by mobile ads is also a significant concern when considering effectiveness and cost.
The ad network a marketer chooses is perhaps one of the most influential factors affecting the cost of mobile advertising. There are mainly three different types of networks used for mobile phone marketing and advertising. A blind network, one that doesn’t target a market and handles ads randomly, is the least expensive, but may not be as effective. Premium blind networks are essentially blind but offer services and advertising options for businesses looking to build a brand or product name at a moderate cost. Premium networks are the most expensive companies and multinational corporations use them to build brands in certain markets.
Another factor affecting the cost of mobile advertising is the nature of the ad that runs on the net. One of the most common is called a cost-per-click (CPC) ad. In this form of ad, the advertiser is charged every time a customer clicks on the banner ad. The cost-per-thousand impressions (CPM) model is an option primarily used for branding by companies with a larger advertising budget. Advertisers pay a fixed dollar amount for every thousand clicks on an ad or redirect to the company’s website.
Businesses looking to branch out into mobile advertising should consider the types of mobile phones they wish to focus on. Most mobile advertising campaigns are directed at phones equipped with full Internet browsers, and prices vary based on the amount of exposure a business requires. The prices for these advertisements are about the same as the prices used for personal computer browsers. For phones without full Internet browsers or Wireless Application Protocol (WAP) phones, advertisements need to be specially designed and can affect the overall cost of a campaign.
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