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A challenge for any advertiser using mobile advertising is understanding the pricing and
costing models to be used, i.e.: CPM (Cost Per Mille (per thousand), CPC (Cost Per Click) and
CPA (Cost Per Acquisition). The mobiles ultimately affect the execution and in turn the
budgets that can be assigned to a campaign.
(a) CPM, or cost per Mille, is the charge that is assigned for the delivery of 1000
adverts via the particular ad network. For example, PCM’s on Vodacom SA sell
for R6 per 1000 adverts delivered (CPM). CPM type campaigns work well for
campaign where you just want to get the word out without any “call to action”
(b) CPC, or cost per click, is the charge assigned when a subscriber actually clicks on
a WAP banner. So if you have a CPC of R2 per Click, you can stipulate that you
would like 20,000 clicks. The ad network will continue to serve your banners until
20,000 clicks are actually completed.
(c) CPA, or cost per acquisition, is the charge assigned to an actual lead that was
generated from the campaign. For example, a user clicks on a banner and is
directed to a mobile site. The user then actual engages on the portal and a sale is
made (depending on the product / service being sold).
Mobile advertising is growing across the continent. With more and more inventory being
discovered and utilized by mobile operators, media owners and third party ad networks, the
scope and demand for this medium is going to explode in 2012.
Jon Hoehler is the Manager for Mobile Technologies at Deloitte Digital in South Africa. He is also as an
active committee member of Mobile Monday South Africa.
Twitter: @JonHoehler