Mobile Ad Rates Begin to Fall

• Posted: Monday, December 15, 2008
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• Author: pradhana
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• Filed under: Mobile Advertising

By Jason Ankeny

Mobile advertising rates are beginning to drop, with cost-per-impression ad rates reaching single-digit pricing in some instances, according to AdAge. While the current economic recession is one factor in the rate drop, growing ad inventory is another as more and more brands elevate their profile on the mobile platform. Citing industry executives, AdAge reports that mobile cost-per-impression (CPM) rates--the cost to reach 1,000 consumers--now average about $15, down from early 2008 averages of $20 to $25.

While some categories, including targeted on-deck placement, still fetch a premium price, the cost of advertising on high-traffic, category-leading weather, news and sports channels has remained consistent at about $14 to $16 per CPM. Executives add that some applications with the capability to offer advertisers specific demographic and location data can still command prices as high as the mid-$30s--still, one advertiser told AdAge a major media site offered him $2 CPM buys, while others say social media sites with large inventories are now pricing their CPMs below $5.

Still, mobile impressions remain costlier than online CPMs thanks to the wireless platform's superior click-through rates--about 1.5 percent on mobile, compared to 0.15 percent on the web. [FierceMobileContent]

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