There’s a lot of talk about CPM these days. It has become one of the preferred forms of monetization for both online and mobile publishers: In 2015, CPM accounted for more than one-third of all American online advertising revenue. Both advertiser and publisher are cashing in on this format and many want to know how much they can make from it. First we must understand how mobile video advertising works.
Here are a few statistics to understand the scope of programmatic advertising from an eMarketer report from earlier this year:
“In 2016, US programmatic digital display ad spending will reach $22.10 billion. That’s a jump of 39.7% over last year, and represents 67.0% of total digital display ad spending in the US.”
“This year, mobile programmatic spending will reach $15.45 billion in the US, representing 69.0% of all programmatic digital display ad spending. Next year, mobile video programmatic spending will exceed its desktop counterpart for the first time.”
“This year, programmatic video ad spending will reach $5.51 billion, representing 56.0% of total digital video ad spending. That figure represents in turn 24.9% of total programmatic digital display ad spending.”
Marketers and advertisers agree that mobile video ads are on the rise and the benefits are significant. Because consumers are more than ever connected to their mobile devices, advertising on this medium is preferred. And video captures user attention like no other form, so combining the two is a winning formula.
All in all, we can say with certainty that mobile is and will continue to dominate desktop; some even believe desktop will eventually become obsolete. We also see that mobile app iOS CPMs are significantly higher than the rest (see below).
In Streaming Media’s in-depth article about the state of mobile video, Irfon Watkins, founder and CEO of Coull says,“The average CPM for preroll on mobile is around $12.50. CPM is the dominant model but buyers are increasingly looking to [other] specific performance metrics to guide their campaign decisions.”
AdToApp has a real-time dashboard of all eCPM rates differentiated by country, as well as their performance (if they’ve gone up or down) and fill rates. Today’s eCPM for the United States was $10.52. As the AdToApp dashboard shows, eCPM rates in the United States are the highest at the moment, but markets in Latin America and Asia-Pacific are expected to rise.
Another helpful resource worth mentioning is ClickZ’s CPM calculator where you can calculate the cost of a campaign, CPM, or the number of impressions.
These are the most legitimate sources we’ve found for average mobile video CPM rates, however the rates will vary — depending on location and vertical. We found many other rates that were significantly higher and significantly lower, but the sources were not reliable, thus we left them out. In order to make the highest possible return on your investment, choose your ad network wisely. Video ad networks that are transparent, have high fill rates and have a variety of partners are your best bets.