Mobile Advertising Click Through Rates of 5%, 12%, 25% and 29%?

I note these stats on gomonews with great interest – and some scepticism Mobile Advertising Click Through Rates of 5%, 12%, 25% and 29%?. Any comments welcome.

>>>>

I am not the only one who finds the recent high profile comments about Click through Rates hard to swallow.

It started with Vodafone’s Ray de Silva quoting 25% at Mobile Advertising and Marketing Forum in London in January.

Then, at the MoMo Peer Awards Blyk’s CEO quoted 29%. Both Vodafone and Blyk have not shown any proof about this and they do sound like figures pulled out of that hat.

I spoke candidly to AdMob about the “reality” of these figures and there was agreement that these figures can only come out of very controlled circumstances or campaigns managed within a week or month. These are not the industry standard for on-going mobile advertising services.

As a market leader AdMob says that its click through rate on average is about 10 to 15% – which is impressive and on top of that realistic. But quoting figures as high as 29% is doing little that building up home for mobile advertisers in the market.

I would actually go so far as to say it’s like a “please advertise with me” number that sounds appealing but without justification or signing up – one will never know.

We know mobile advertising is a growing market. But quoting figures without substance is a bad move.

If you look at the chart above it’s from a campaign that I ran with AdMob. I made the same charts in more detail for campaigns run with Decktrade, Google and JumpTap and others.

By using examples of bkimedia.zinadoo.mobi and gomonews.mobi in campaigns run over 2 weeks I managed to track to see what campaigns were more effective by terms of cost and click through over each vendor. If you would like to know more, then contact me – but in the diagram above over two days the sheer volume of impressions on AdMob drove down the click-through vs cost ratio. The above is only a very small example and the click through rate for the campaign was about 2% – but then the cost of the campaign was also only pennies.

Finding a rational between cost vs click through vs impressions is the first step that companies need to take in the mobile advertising and marketing space before quoting unrealistic click through rates.

<<<<

Comments

  1. lvs says:

    You are right there is a lot of hype around mobile advertising. Some of which is true…interestingly the application you have and what you are serving on it determines the click thru rates. But I agree 29% seems a tad too high.
    If interested you can read my thoughts on this at:
    http://indradhanush-laal.blogspot.com/2008/02/advertisers-to-vie-for-that-two-square.html

  2. Hi Ajit
    Russell of AdMob here. The original article rather overstated our click through rates, I’m afraid and Bena has clarified them in the comments section.
    For the record, I quoted her about 0.5 – 1% as an average, but it was a noisy venue and I guess she misheard.
    We have had much higher responses than this, but I don’t really think it’s very useful to “talk up” these as it will lead to disappointed advertisers. In other words, if you quote an average of 5% and the campaign delivers 2%, it’s going to lead to disappointment. If you quite 1% as an average and it delivers 2%, it’s going to lead to delight!
    I also don’t think it’s really very helpful to focus on CTR anyway. The true measure is surely how well a campaign met its objectives and CTR isn’t always the key variable. As an example, some clients are looking for brand exposure, in which case CTR isn’t really relevant. And many look at Cost Per Acquisition, in which case a high CTR, with low subsequent purchase, isn’t very helpful either.
    Finally, the problem with quoting very high average CTRs (even when they’re true) without releasing specific case studies to back them up, is that it can come across as mere hype. And the higher the CTRs become, the more it’s likely that people will be sceptical.
    Cheers
    Russell

  3. Karri says:

    We have to keep in mind that Mobile Marketing is not one thing. It’s many. Therefore it is quite understandable that Blyk has different (higher?) CTR:s than AdMob.I have been involved in Mobile Marketing campaigns with over 60% CTRs. That’s achieved through highly segmented, highly personal messaging where messages are a part of the dialogue with the customer. And this is what Mobile Marketing should be all about. Banners are good for something, but then we forget the true meaning of mobile – always on, always with.
    //Karri

  4. lvs says:

    You are right the click thru rates seem to be inflated