What’s four letters long and something that just about everyone has in their pocket? Apps. Apps are taking over the world with their simplicity and convenience all stored within a pocket-sized (or desk-top sized) device. With the knowledge, we have on how apps are continuously evolving and expanding, one may think to themselves, how can I get in on that and market my business or product through apps?
How Much Do Ads Cost on Mobile Apps? It depends on what type of route you take for advertising. You may pay a fee per clicks your ad receives, or you may pay a flat fee. Typically, the cost is $15- $50 per thousand clicks. To maintain an advertisement, one may pay up to $1200/ month.
Marketing is essential if you want to make it as a business, and the easiest way to market its advertising. But wait! How does one go about advertising in today’s industry? One can showcase their advertisement through television commercials, radio commercials, newspapers, or if you want to come into the 21st century, through one’s mobile phone. Advertisements can be implemented in various mobile apps such as gaming apps, memo apps, or social media apps. You may be wondering how you can accomplish the feat of getting your advertisement into a mobile app, well fear not for I will explain.
Advertising through Mobile Apps
Before we discuss the different costs associated with advertising on an app, we must first take a step back and think about what we are trying to achieve from marketing. Why is this important? Well, if you throw your advertisement out to any app, you probably won’t get the results you’d hoped for. Think about receiving an advertisement for socks while you’re playing a game on your phone. Are you going to click on that socks ad? No, and you aren’t alone, no one would.
Think about what you’re trying to market and what it would tie well into. For example, a puzzle game advertisement would tie in well with a sudoku app, and many people would be intrigued and click on it. If you’re selling jewelry, it may be wise to market that on a dating app, and so on and so forth. You get the point.
This initial step isn’t rocket science, just ask yourself the following questions:
- What do I hope to achieve from my advertisement?
- Who is my target audience?
- What already exists within the category I’m trying to market it?
How Do I Advertise?
Okay, so you’ve figured out what category of apps you want to advertise in. Heck, maybe you’ve even picked some apps out that you wish to advertise in. Now what? There’re multiple ways you can tackle this next step. Let’s review some ways.
- You could contact the developer of the app you wish you advertise on. This one may be tricky because not all apps disclose their developer and you may have to do some digging. It may be difficult to even find a way to contact the developer, but it’s possible and probably your most efficient option. By working directly with the developer you can negotiate costs, placement, and design of your advertisement. This way is much more flexible in terms of cost.
- You could go through an advertising network such as AdMob. This option also has its perks because you can pay for ad space and then have your ad can appear or be featured on numerous highly ranked mobile applications. This option would allow your ad to be seen more, but it could place your ad in applications that are not relevant to your business or product. Cost for this one is dependent upon advertising network, some would have you pay a flat fee while others would have you pay for each click your advertisement gets.
- This last one is a bit more complicated, but it’s free! You would join an advertisement trading network, where you could swap advertisement positions with other companies. The catch for this one is you’d have to place other people’s advertisements on your own website, which can be problematic for multiple reasons.
The format of Mobile Ad
Now you’ve chosen how you’re going to tackle getting your advertisement into a mobile app, but what is it going to look like, and what are your options? There are 5 types of advertisements typically seen within mobile apps.
- Banner Ads: These are the ads that you see on the upper or lower part of the app which expands from side to side. They can be either animated or static.
- Native Ads: This type of advertisement blends in with the rest of the app, making it much easier for the user. to accidentally click on it, and it’s not as intrusive.
- Interstitial Ads: These are the ads that pop up and take up the whole screen. Users will have to physically click the “X” to close the ad.
- Video Ads: These can be implemented in various ways, such as a pop-up before the user is able to get into the app. It’s important to keep these short, sweet, and enticing as to not frustrate the user
- OfferWall Ads: These types of ads offer the user some form of incentive for clicking on the ad such as a coupon or points towards a game.
When choosing what type of ad you’d like to develop, it’s important to remember that you want to entice the user, but not annoy them. Having an annoying ad with your company’s name on it is not going to make the user fond of you!
It’s also important to have different ideas because one advertisement design may flop and get no clicks, whereas another may get tons. Be flexible and creative as you design an advertisement.
When considering the entire cost of an advertisement on a mobile application, one must consider all aspects, including start-up costs. To set up an advertisement, there needs to be website configuration which could occur through the application developer or the website that you have partnered with to run your ad, but what does this cost?
For both pay per click and flat cost advertisements, the set-up cost (including advertisement development) is between $0 – $10,000. This is a one time cost, and it serves to get your ad situated in its space and ensure it’s functioning as it’s supposed to. It goes without saying that the more you pay, the better quality your advertisement will be.
You can do this yourself to save money. It will require some basic computer graphics skills and marketing knowledge. Ad networks such as AdMob allow you to get started with minimal costs.
Cost Per Views
This information is based on teamappadvertising.com, which is an advertising network. It should be noted that not all advertising networks are going to be the same price, but this the average of what it will cost someone to advertise on an app within each country.
United States of America
If your advertisement receives 5,000 clicks then you will need to pay about $36.13. With 10,000 views you will save 10% by paying $65.04. Again, as your clicks increase and you receive 25,000 you will receive another discount of 20% and will need to pay 144.54.
The Australian rates are as follows:
5,000 = $50.00
10,000 = $90.00
25,000 = $200.00
The Canadian Rates are as follows:
5,000 = $48.18
10,000 = $86.72
25,000 = $192.70
To break these costs down father, the national (USA) average per click on an advertisement $.05 – $3. Whys such a large range? Well, it depends on where your advertisement is located, if it’s in a prime location. The price is also reflective of how much traffic and how popular the app is that your advertisement is placed on. You will be paying a lot more for an ad placed in a top app compared to a lesser known app, but the payout might be worth it. Again, this goes back to defining your purpose for advertising.
The average that a business will pay per month to ensure their advertisement stays is the cost of the clicks in addition to a flat fee of $1200 to the app developer or ad networking service. This again is the national average.
Flat Fee Model
With flat fee advertising, there is no pay per click. This form of advertising is often cheaper but does not allow for the same higher ranking app spots. The national average monthly fee for this form of advertising is $900. This fee will go towards the networking service that you have chosen to implement your advertisement.
Planning Your Ad
So how much should you put aside in order to pay for your advertisement? Here’s a good break down of how much advertising should cost you per year.
Start by jotting down an estimate of your yearly gross profits, then take 10%-12% of that. This is about how much you should spend each year on advertising efforts.
Then stop and think about your business goals, what do you hope will come out of advertising? Maybe for every 1,000 clicks, 10 people buy your product. Is that worth it? What can you do to increase this number?
When determining your advertisement strategy, think about what problems your product or company can solve and how it applies to the apps you have decided to advertise within. Critically think as advertising takes work and will not promote your business overnight.
Examples of Companies Doing it Right
Below are a couple of companies that gained success using application advertisements.
- Potbelly is a restaurant that placed its ad into applications of mobile devices around the vicinity of their website. They promoted their new sandwiches and had huge success with this strategy.
- SlimFast raised its sales by creating an interactive advertisement that users could engage with while on applications. They found that interactive ads were much more successful and created lasting customers.
- Lancome is a cosmetic company who placed their advertisements into apps that were most frequently used by women. When users clicked on the advertisement they were brought to a video where more information about the product was reported in an interactive fashion.
- Emirates started as a newer airline who flew from New York City to Dubai. To encourage flyers their advertisement was linked to wi-fi connection in New York City airports.
With a little bit of thought, you can turn great ideas into better profits. Think outside the box when implementing advertisements in the mobile application sphere! You want to do something that hasn’t been done before to raise interest from users.
Okay, I know, that was a lot. Let me summarize it all for you real quick. The cost of an advertisement on a mobile app depends on what your goals are. If your goals are to start promoting your business and getting your name out there, then a flat marketing network service may suffice and provide a cheaper alternative to marketing. However, if you want people to buy products, you’re going to have to spend money to make money. Cost per click advertising ensures your advertisement will be prioritized and in a place where everyone can see, thus allowing for more business! Of course, there are other options such as trading ad space with another company or reaching out to the app developer. Before you dive into these steps, plan out what you want out of this experience. All in all, you will be spending between $100- $10,000 on advertising.
Where else can I advertise that’s similar? You can also advertise on popular websites, such as social media pages. It will be much easier to transfer your advertisement across different websites.
Where should I look for advertising opportunities? Any application! No, really, advertisements can be merged into just about any application. In fact, people typically had to pay a fee in order to get rid of the ads.
What’s better online advertisements or television? Online. With the influx of Netflix and Hulu, a lot of TV commercials are missed.