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What is banner networks?

Why do most mobile ad networks still target banner clicks or impressions and do not offer a performance-based  advertising model?

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    It is always the age old question of shifting the onus of conversion. So lets take the case of a app/game installing campaign, which represents more than 80% of the smartphone in-app ad campaigns: Consider this: a. To deliver a click, an ad network has to design a good creative/banner and present it to a handful of relevant users while to deliver an install he is dependant on the app store listing page of the app/game. And if there's anything wrong with that listing, be it a poor icon, a poor description, shitty screenshots, or even not so great ratings or lets say less number of ratings, any and all of them are individual reasons/parameters which are responsible for any/many of those clicked users not installing the app/game. So this may potentially lead to a state of affairs where an ad network may end up delivering a lot of high quality clicks but with no/poor conversion ratio owing to pathetic store listing. Thus ad networks prefer to run CPI campaigns only with established apps/games by bigger players where the're are about good conversion ratios from the clicks they generate. Also very few ad networks expect their advertisers to run CPM campaigns these days. The industry is maturing though not a great speed but definitely at a much faster speed than it did on the desktop web.

Nikunj Jain at Quora Visit the source

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Because for quite a few of them, their traffic quality is so poor that they need to shift the burden of risk more fully to the advertiser. Different types of cost models carry different amounts of risk to the advertiser who is focused purely on driving results.  In order from most risky to least risky that would be: 1. Buying traffic for a set period of time (not even guaranteed impressions) 2. CPM 3. CPC 4. CPA Even Google had issues for a while where accidental clicks on mobile were a huge source of the traffic.  They've since implemented things to cut down on that significantly, but other mobile networks are not as nice. There are actually quite a few mobile networks that are specifically geared towards app downloads, and those tend to operate on a CPA (or in this case cost-per-download) model.  They also tend to have their placements more tightly integrated into apps themselves so convert at a much higher rate, and thus can confidently do that. However just because someone downloads the app does not always mean they will become an active user and pay for IAP or anything like that.

Michael Shostack

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