There’s no clear answer for mobile device advertising costs because it can vary based on the type of campaign and mobile advertising you want to run, the format of the campaign, how it is delivered, and what audience you’re trying to reach. There are a few different pricing models that brands and their advertising partners can choose from when it comes to mobile device advertising. Some of these models include the following:
Cost per mille (CPM), a common way of paying for mobile ads, is the cost of 1,000 impressions for an ad. Popular social media companies use CPM pricing for their advertising model.
Another pricing model is cost per click (CPC), where the advertiser only pays when their ad creative is clicked. This model helps brands feel like they are paying for active engagement on their ad. For example, CPC ads are commonly seen on traditional search engine result pages.
Cost per action (CPA) is a third pricing model that goes deeper into the marketing funnel. This is when customers not only click on an ad, but they also take a desired action like downloading an app, registering for a newsletter, or purchasing a product. When customers take a desired action, the advertiser is charged.