The Fiksu Blog

Infographic: Building Brand With Mobile App Engagement

Today, half of the entire U.S. population uses smartphones. As a nation, we are addicted to our devices and our apps. In fact, according to Mary Meeker’s latest report, most smartphone users now check their phones 150 times a day! So it’s no wonder that marketers are waking up to the fact that apps present an incredible canvas for marketing and engaging with consumers. In fact, in 2012, more than $1 billion was spent on mobile marketing, and that number is expected to double in 2013 and continue to grow in the years to come.

For marketers trying to figure out how much of their advertising strategy and media dollars should be devoted to mobile app advertising, it’s natural to turn to “traditional” metrics like CPM and CPC. So we decided to research how mobile CPCs and CPMs stacked up against desktop PPC and other advertising mediums. We analyzed more than 2.4 billion app marketing data points from the campaigns of global app brands and, with the exception of social media, it’s very clear that mobile is significantly cheaper than traditional channels like online, outdoor, or broadcast. And mobile display advertising clearly trumps desktop pay-per-click advertising for cost-efficiency. You can access the full study and our findings, titled, “Brand building on mobile devices: measuring the value of consumer engagementhere.

But the bigger story here is the huge engagement potential that mobile app advertising offers and the reality that, today, there is no effective means of measuring it. Even the IAB agrees that mobile app measurement needs improvement. The reality is that CPM and CPC metrics aren’t able to capture the uniquely value of mobile app engagement.

Today this changes.

Today, Fiksu introduces CPEm (cost per mobile engagement), a new metric to help marketers strategically evaluate and measure the ROI of mobile app advertising. Defined as the cost of an app launch, an in-app purchase, or a registration, CPEm captures the extended relationship that mobile apps create as consumers launch and relaunch apps, spend time in sessions, make in-app purchases, and register with the brand. And according to our research, the average CPEm for mobile app advertising is 1/10th the cost of a desktop click.

All in all, it’s a far more meaningful tool for brands to use for planning and decision-making for mobile app advertising strategy and planning and, according to our discussions with industry players, CPEm is very much welcomed. 


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