Getting around rising in-app CRM costs

Mobile app usage continues to grow, which has led to more marketers seeking to take advantage of this traffic. The cost of this has, predictably, also gone up. 

It might feel daunting for affiliates to make sure they’re getting good value for money with cost-per-mille (CPM) in-app advertising. But, in this noisy room, there are ways you can shout the loudest. That’s what we’ll discuss today.

What’s the current state of in-app CPM?

During the first quarter of 2019, there was a 27% increase in the effective CPM (eCPM) within in-app advertising (Source: The Drum). This has been due to a growing number of advertisers trying to grab the attention of mobile users. More accessibility to user data has also played a role. 

As you can see, there are some *slight* problems related to the above. The rising cost is a direct result of rising supply and demand. This is particular in developed countries, where the number of mobile app users is pretty much maxed out. 

In an interview with The Drum magazine, Delynn Ho – General Manager for APAC at Smaato – highlighted this. She mentioned how the number of mobile app users in the US is only expected to grow by 3% this year, compared to 13% in India. But a lot of advertisers will spend money within the former of these, meaning they’ve got to try harder to compete. 

How can affiliates combat these rising costs? 

You should be more resourceful when choosing which countries you target. One example of this in a general sense is South Korea. The article we cited above mentions how, on average, people here use 40 apps each month. Moreover, South Koreans have a high purchasing power. This – in addition to the high volume of users – means that there is a good return on investment (ROI). In an iGaming sense, you should think about countries with a similar profile. Where can you get the most value for money, while tussling with fewer competitors?

Of course, it’s also vital that you include banners which your audience will engage with. In addition to having sophisticated built-in website technologies, you can also leverage third-party data to build a better profile. This can be collected from location data, along with app activity and payment information. By utilising these tools, you’ll be able to determine who can spend with you and is therefore worth getting in front of. 

The final word 

While in-app CPM costs have gone up, that doesn’t mean you can’t still get good value for money. More than anything else, it requires research. Look at markets where, within the vertical you serve, players either deposit a lot or exist in high volumes. Then, make sure that the battle for attention is lower. Use data from a range of sources to determine what they’re betting on, and what banners will interest them. By taking these approaches, rather than going straight for the saturated markets, the money you spend will be more worth it.

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