How Effective Is Mobile Advertising? What You Need to Know

Mobile advertising is the most effective form of advertising on the internet. Mobile response rate is 2.72 percent on average, with the highest rates being over 11%. 

Here’s your chance to learn more about mobile advertising and how the Agility platform can help you reach your marketing goals. 

What Is Mobile Advertising? 

Mobile advertising is any form of advertising specifically designed to appear on a mobile device. This can include everything from in-app advertisements to ads before and during a streaming video to website ads. Mobile advertising has significant overlap with digital and online advertising but is differentiated depending on the device the ad is optimized for. 

What Are the Benefits of Online Advertising? 

Here are five significant benefits of mobile advertising. 

  1. Reach Your Audience Where They Are – Web traffic used to be dominated by computers, but since 2017 that hasn’t been the case as more people switched to mobile devices. In 2022, 57.38% of all web traffic comes from mobile devices. When you use mobile advertising, you can better reach your target audience. 
  1. Speak Directly to Audience Needs and Pain Points with Segmentation – With mobile advertising, you can segment your market and create targeted advertisements shown only to specific demographics. This allows you to customize messages to speak directly to the needs of each customer, which can increase engagement and conversion rates. 
  1. Cost-effective – Mobile marketing is significantly cheaper than traditional marketing techniques, and it has a better ROI. Traditional advertising takes the shotgun approach, where an advertisement is shown to a wide audience in hopes of the right customer viewing it.

    The main benefit of mobile advertising is that there isn’t as much wasted spend. Targeted mobile advertisements take a sniper approach. Rather than wasting ads on the wrong audience members, mobile advertising tries to reach the perfect customer on the right device at the right time, reducing wasted spend and increasing engagement.
  1. Easy to Track – It’s easy to generate reports and evaluate key performance indicators. With more information, it’s easier to tweak and polish your campaign to increase click-through rates by making more accurate and relevant ads. 
  1. Continual Refinement – With mobile advertising, it’s easy to perform A/B testing to test various ad creatives, targeting options, graphics, and CTAs. You can continually optimize an ad, to make the best ad that speaks to your target audience. 

How Is Mobile Advertising Effectiveness Measured? 

Advertisements can help drive growth and improve brand awareness, but how do you know they’re actually doing that? Here are three of the most basic ways you can measure mobile ads to track if they are performing as you want.

  • Click-Through Rate (CTR) – An ad’s CTR is the percentage of people who see your ad compared to the people who click it. A higher CTR is a good indicator your ads are finding the right audience,
    CTRs can change depending on what you are advertising and the networks you choose to advertise on. Because of this shift, there are no universal ‘best’ or ‘worst’ CTR percentages. 
  • Cost Per Click (CPC) – this measures how much it costs to earn one click on your ad.

A common mistake when measuring CPC is ignoring some costs and fees involved with placing an ad. For example, you should include the cost of placing the ad and all of the costs building up to placing the ad, including any costs for strategy, design, and layout. When you don’t include the full cost associated with the ad, it can significantly drop the CPC and give you inaccurate information.

Ideally, your CPC should be low, but you should consider it in context with the revenue it generates from your product or service. For example, a CPC of $10 doesn’t seem high if it leads to a consumer purchasing a car or similar high ticket item.

  • Cost Per Lead (CPL) – This metric measures the cost of generating a quality lead for your sales team from the ad. 

This is an important metric because when you compare it to your CPC, you can start to identify potential issues in the customer journey. When comparing CPC and CPL rates, the most common situation is when your CPC is very low, and the CPL is very high. This means customers are clicking on your ad, but something is stopping them from converting  once on the website. 

These metrics are useless without understanding how they apply to your business and your previous successes or failures. Previous campaigns can provide some insights into what rates to expect and can serve as a baseline for measuring the effectiveness of your campaign.

Make the Most of Your Mobile Ads with Agility

Agility specializes in creating, managing, and optimizing digital ads. We can help you understand what mobile marketing strategy is best for your company and give you the tools to better manage and optimize your next campaign. 

Contact us today to learn more about how you can take advantage of mobile advertising.

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