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.