Make Mobile Perform: What’s the Real Cost of Mobile Display? A New Marchex Institute Paper

Make Mobile Perform: What’s the Real Cost of Mobile Display?  A New Marchex Institute PaperWe released a paper yesterday that took a penetrating look at the value of mobile display advertising.

Keep in mind, this value was calculated only for those advertisers who want DIRECT outcomes from banner ads. That means we focused on advertisers hoping for new customer calls when their banner ads pop up on a mobile phone.

Except that hope turns out to be a little… well… hopeless. Because you know how you feel when banners pop up on your mobile phone? That’s how most people feel. Not very excited.

After running a set of ad campaigns on six major mobile display networks, we crunched the numbers and discovered that clicking on ads and looking at ads (aka impressions) are inaccurate tools for measuring quality outcomes. Not only that – the price for mobile display is excessively expensive. Advertisers can overpay by more than 10X to generate just ONE quality call.

We had a hunch mobile display didn’t perform well. But even we were surprised by what the data showed us.

  • It can take an average of nearly 500,000 impressions (ad views) to generate a quality phone call.
  • Mobile display ad performance varies wildly. In one case, a campaign that got 1.4 million impressions did not result in a single quality phone call.

We’re always looking out for Number One – who, to us, is unequivocally our customer. We don’t get paid unless our customers do. That’s why we focus on campaigns that deliver high-quality outcomes. Making mobile perform and making sure our customers get the best ROI on their ad campaigns is our biggest priority.

Digital marketers have to start demanding performance. It’s the only way to fix these deep flaws within the industry standard.

Our president, Pete Christothoulou, will speak about these very topics tomorrow at Digiday Mobile in NYC tomorrow. Stay tuned for highlights from his presentation…

John Busby
VP, Marchex Institute

John Busby leads the Marchex Institute, a research and analytics team that publishes findings on mobile advertising and the growing digital call advertising industry. The Marchex Institute also provides custom research and consulting services for customers on their mobile and call-ready advertising campaigns. Previously, Mr. Busby served as Vice President, Product Engineering at Marchex. You can find him on Google+ and Twitter.

Posted in Data, Marchex Institute, Performance Advertising

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