What is an average mobile ad click-through rate?
Sep 24,2013 by Francis Bea
In mobile advertising, the CTR measures the percentage (or rate) that smartphone owners click on an app’s ad and is frequently encountered by both mobile advertisers and publishers. For instance an advertiser might decide to evaluate the efficacy of their CPC, CPI, or CPM campaign, or a publisher might want to calculate earnings from specific advertisers, which would require using the CTR.
What is a “click-through rate?”
Before we dive into an average click-through rate, we'll look at the basics starting with the click-through rate formula. The CTR is calculated by dividing the total number of clicks on an ad by the total number of impressions.
For example, if a publisher has given 50,000 impressions to an advertiser and the number of clicks that the advertiser has received from 50,000 impressions is 100, then the CTR is 0.2%.
To put the CTR into practice, the metric might be useful in the case that a publisher is deciding on the fairness of an advertiser’s direct deal bid. The CTR would be used to establish a baseline to judge the quality of an advertiser’s ad creative by looking at the volume of impressions the advertiser has been given and comparing this figure with the number of clicks the ad garnered.
If you want to learn more about direct deals, you can find out why direct deals help developers optimize ad campaigns.
To flesh this example out further, say that a publisher gave an advertiser 100,000 impressions yesterday and the advertiser’s ad received 5,000 clicks in a CPC campaign. Using the CTR formula from above, the publisher would find that the CTR from the advertiser is 5%. If the advertiser bid $0.30 in a direct deal for more than 2,000 clicks (and the initial bid price is $0.20) the publisher would need to give the advertiser 40,000 impressions to begin collecting $0.30 for every additional click. Publishers could use this insight to analyze whether $0.30 is a fair bid or whether they should reserve this inventory for one advertiser over another.
What click-through rate should I expect?
As a publisher it’s a given that you want to maximize your CTR. Usually the higher the number of clicks you get, the more revenue you generate. If you’re not satisfied with your current CTRs, there are numerous ways for publishers to go about optimizing this metric, whether it’s by integrating high-performing ad formats or changing the look and feel of ad format itself. But before you make a move, you might be interested to learn about the types of ad formats that tend to command the highest CTRs.
To analyze our findings, we've found that list and panel ads command the highest CTRs with 7.14% and 12.60% respectively. This discovery is by no means surprising. Both ad formats promote more than one app within one page, thereby increasing the chances that the user finds an ad that they’d be willing to click on.
Mobile banner ads expectedly sit at the bottom of the competition with a 0.23% CTR. If you were looking at the average CTR alone, you’d find that the banner ad lives up to its unremarkable reputation.
Interstitials on the other hand sits in the middle with a 5.70% CTR. Not bad for a format that’s visually a step up from banner ads. The average click-through rate for custom ads on the other hand is the surprise here. The CTR is just 0.37%, not much better than banner ads.
If you'd like to share your CTRs and the ad formats you've been using, let us know in the comments below.
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Francis Bea is the Content Market Manager at PapayaMobile. Francis writes about the intricacies of the global mobile advertising industry and analyzes industry trends for AppFlood. He hails from the tech blogging world, where he got his start at Digital Trends, and contributed to TheNextWeb, PSFK, CNET Asia, among other tech blogs, and his reporting has been cited in numerous major publications. Francis holds B.A. in English and Art History from The University of Wisconsin-Madison.Google +
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