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March 12, 2013

The Cost of Advertising To Marketers:Newspaper vs Web vs Mobile

Mobile may be the future, but right now mobile ad units still command a lower price point on average than print and web advertisements.

CHART OF THE DAY: The Super Low Ad Rates For Mobile - Business Insider: users are shifting to mobile devices, it could be devastating to ad-supported online businesses, says Emily Steel at the FT.
She notes that the ad rates for mobile are paltry compared to traditional PCs. Those ad rates are, of course, paltry compared to old media like newspapers, magazines, and TVs.

Here, from her story is a look at how much an ad costs in various media to reach people based on cost per thousand impressions.More recently, leading mobile ad platform Opera Software broke down the average cost for mobile ads by device, and found that even the iPhone, which has the highest average CPM for mobile ads of any smartphone, at $2.85, still falls short of that CPM for web ads on a desktop. Importantly, Opera's mobile ad estimates likely skew higher because its business focuses on mobile display ads rather than mobile search ads, which tend to have a much lower CPM.
According to  Mary Meeker of Morgan Stanely: The effective cost per thousand impressions (CPM) for desktop web ads is about $3.50, while the CPM for mobile ads is just $0.75.However, in the aggregate, mobile ads continue to be cheaper than web and print, due to a combination of limited screen real estate, a lower price point for search ads and less sophisticated advertising technology to entice marketers to pay more.