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Video ads drive high conversion rates and competition on mobile, according to Fiksu indexes

Media costs on iOS reach highest point in 2017

BOSTON – June 6, 2017

Published today, April indexes from Fiksu DSP, the data-fueled mobile marketing technology company, show growing demand for video ad space on mobile, which Fiksu attributes to the high conversion rates that advertisers are experiencing with video campaigns. Specifically, the cost to buy media (CPM) on iOS reached its highest level in 2017. At the same time, the costs to drive user purchases (CPP) continues to decline on Android, indicating that marketers are still favoring iOS despite ample opportunity on Android.

Overall, April’s indexes revealed the following:

  • CPP increased month-over-month by six percent on iOS and decreased by seven percent on Android
  • CPM month-over-month rose on iOS by 27 percent to $7.52, while it remained stagnant on Android at $2.05
  • CPP decreased year-over-year by 36 percent on iOS and 50 percent on Android
  • CPM increased year-over-year by 71 percent on iOS and decreased one percent on Android

The noteworthy upsurge in the cost to buy media in 2017 can be attributed to an increasing number of brands purchasing video content. As video continues to become an important and effective platform for advertisers to reach consumers, Fiksu expects these costs will continue to increase as demand and competition rises.

“Video has become the gold standard for advertising, and the demand for video advertisements – and the cost to purchase premium media – will continue to surge,” said Megan Gerardi, director of client development at Fiksu DSP. “iOS is clearly still the platform marketers prefer when trying to reach users, which also contributes to the competition and rising costs.”

While costs to purchase media continues to rise on iOS, CPM has remained relatively stagnant on Android. The lower level of competition on Android presents brands and marketers a prime opportunity to test video campaigns at a lower cost. Whether a brand is diving into video for the first time or interested in reaching new audiences for a campaign, marketers who spend on Android are getting a better value than on iOS: Android competition isn’t as strong, and conversion rates are on par with iOS today.

“With media buying costs at the highest they’ve been this year on iOS, we expect more advertisers to explore Android in the coming months,” said Matt McGinty, CRO at Fiksu. “While iOS will always remain a top priority for marketers, the spend to conversion value currently favors Android.”

About Fiksu DSP

Fiksu DSP combines a massive, proprietary dataset with powerful segmentation tools to reach high-quality audiences at scale using the top RTB exchanges. Fiksu DSP has executed thousands of successful mobile campaigns to connect brands, agencies and app advertisers to audiences that spend time and money inside the apps they download. Clients include Amazon, Disney, Groupon, Coca-Cola, Electronic Arts, Dunkin’ Donuts, and Starcom. Based in Boston, MA.

More at, @Fiksu
and on the Fiksu DSP blog.

Ben Shannon
Marketing Manager
Fiksu DSP

John Costello
Senior Account Executive
Corporate Ink

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