Mobile ad CPMs well above those for DS marketplace
May 16, 2008 by Dave Haynes
Mobile advertising is a very different kettle of fish than digital screens, but there are things to be learned from what’s happening in that space.
MediaBuyerPlanner had a piece Friday reporting a few things of note that spilled out of a mobile advertising conference in LA.
1 – CPMs – A Verizon exec said the cost per thousand being sought these days for mobile ads is $20-$30 because of the high level of engagement mobile offers to advertisers, though it was felt $20 is more realistic. In our world, CPMs are more like $5-$10 with places offering long dwell times able to at least ask with a straight face for more.
2 – Penetration – In the US, market penetration for SMS advertising is still far below that of Europe, but the response rate is more twice as high (you wonder if that’s because it is still a novelty over here and the SMS spam factor is not yet in play).
3 – Budget – U.S. mobile ad spending is projected to reach nearly $1.7 billion in 2008, up some 89 percent from $878 million in 2007, and will surpass $6.5 billion in 2012.
As noted, mobile and digital screens are two different animals. But the advertising world is looking to make media buys across platforms, and the smart among us will be doing what they can to ensure money that is shifting to mobile can also be used for complementary buys on campaigns that intertwine big and small screens.