Mobile Advertising Outperforms Traditional Advertising for Cost-Effectiveness and Engagement, Finds New Fiksu Study
Fiksu Introduces New Metric to Help Brands Benchmark the Cost of Mobile Engagement
A new study published today by Fiksu, Inc. (www.fiksu.com), developer of the award-winning Fiksu Mobile App Marketing Platform, has determined that the cost per engagement of mobile app advertising is ten times lower than paid search marketing. For this new study “Brand building on mobile devices: measuring the value of consumer engagement,” Fiksu analyzed more than 2.4 billion app marketing data points from the campaigns of global app brands running promotions through the Fiksu Platform, and compared their cost-effectiveness and reach to traditional advertising channels. As part of the study, Fiksu also introduced a new metric designed to help brands better understand and measure the ROI of mobile advertising: (cost per mobile engagement). Key findings from the study include:
- Mobile CPM (cost per thousand impressions) rates are the second lowest among all advertising mediums – broadcast, print, and digital – behind only social networks.
- Mobile display advertising CPCs (cost per click) are up to 90 percent cheaper than desktop pay-per-click (PPC) campaigns for major brands.
- CPEm (mobile cost per engagement) for mobile app advertising is one-tenth of the cost of a desktop keyword click.
With smartphone usage skyrocketing, brands are steadily increasing their mobile advertising spends, but current industry metrics for measuring advertising effectiveness are unable to factor in the unique engagement potential of mobile advertising. Fiksu set out to create a new metric that goes beyond traditional CPM and CPC metrics to most accurately reflect the pervasive and persistent reach of mobile app advertising. Fiksu’s new CPEm metric is defined as the cost of an app launch, an in-app purchase, or a registration. It 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.
“Brands are waking up to the fact that mobile apps provide an incredible and very cost-effective canvas for marketing. But using CPM and CPC as sole measures of ROI eclipses the powerful engagement that mobile apps bring and which brand marketers seek,” said Craig Palli, vice president at Fiksu. “Fiksu’s new CPEm metric is a far more meaningful tool for brands to use for planning and decision-making.”
To calculate the CPM, cost per launch, CPEm and CPC metrics reported in this study, Fiksu analyzed more than 2.4 billion app marketing data points (ad impressions, app launches, in-app purchases, and registrations) over the last 12 months from mobile campaigns of global app brands running on the Fiksu Mobile App Marketing Platform, including incentivized, non-incentivized, RTB, and publisher direct traffic sources. These data points are the foundation of Fiksu’s app marketing knowledgebase of more than 80 billion conversion and in-app events, which is used to optimize the targeting of media, buys, and help customers secure high-value, loyal users.
CPC metrics for the paid keyword search campaigns cited were calculated using Google AdWords Keywords Tools and relevant keywords for the same app brands, and are also representative of global data. CPC for mobile is calculated as an average of the actual CPCs for campaigns run by these brands.
Fiksu, Inc. helps leading brands optimize their iOS and Android mobile app marketing campaigns and secure large volumes of loyal users. The company’s flagship platform, Fiksu® Mobile App Marketing Platform, spans the entire mobile ecosystem providing the most cost-effective, predictable and intelligent mobile advertising solution, slashing user acquisition costs and ensuring sustained user engagement. Additionally, Fiksu offers FreeMyApps®, an app discovery platform where users are rewarded. Based in Boston, Mass., Fiksu is venture-backed by Qualcomm Ventures and Charles River Ventures. More at www.fiksu.com, @Fiksu and on the Fiksu blog.
InkHouse (on behalf of Fiksu)