Mobile Advertising Business Models: Pros & Cons | AppsFlyer

Mobile Advertising Business Models: Pros & Cons [Cheat Sheet]

 
 
 
Payment Terms: Pre-determined price for every 1,000 impressions (cost per mille – mille being the
Latin term for one thousand).
Pros: maximal brand awareness, reach, lower cost.
Cons: non-performance model, greater chance of
non-transparent networks sending low quality impressions.
 
 
   
 
 
 
Payment Terms: Pre-determined price paid every time a user clicks on an ad.
Pros: Easier to analyze user engagement through ad creative A/B testing.
Cons: Fat fingers phenomenon means you risk
paying for unintended clicks and damaging your brand name with awful user experiences; Higher cost than CPI if you don’t have the resources to optimize click-to-conversion path, lack of robust analysis tools, vulnerable to fraud.
 
 
   
 
 
 
Payment Terms: Pre-determined price paid every time a user installs the application.
Pros: Performance model, lower cost, low risk.
Cons:Risk of non-transparent networks driving a
high volume of low quality or incentivized traffic to drive installs.
 
 
   
 
 
 
Payment Terms: Pre-determined price for every
in-app action defined by advertiser (revenue or engagement related).
Pros: Pure performance model adopted by the
savviest data-driven advertisers.
Cons:Scale may be negatively impacted; higher cost
but so is the value generated so ROI only grows over time with higher LTV of acquired users.