In today’s competitive mobile landscape, understanding key metrics like effective cost per click (eCPC) and click-through rate (CTR) is essential for optimizing your ad budget. These metrics provide valuable insights into user engagement and budget efficiency, helping app marketers maximize their advertising efforts.
In this guide, we’ll define eCPC and CTR, explore their impact, analyze industry benchmarks by region and vertical, and provide actionable strategies to improve both metrics and drive better campaign results.
What is Effective Cost Per Click (eCPC)?
Cost per click (CPC) serves as both a pricing model and a performance metric. As a pricing model, CPC charges advertisers only when users interact with their ads by clicking, making it a cost-efficient way to pay for engagement rather than impressions.
As a performance metric, CPC helps assess the efficiency of ad campaigns, especially for interactive formats like video or playable ads. Effective cost per click (eCPC) expands on this by calculating the actual cost per click, regardless of bidding strategy. This allows advertisers to measure campaign performance consistently and allocate budgets effectively to maximize ROI.
eCPC Formula:
eCPC = Total Ad Spend / Total Clicks
eCPC = $500 / 1,000 = $0.50
This means that, on average, you are paying $0.50 for each click on your ad.
What is Click-Through Rate (CTR)?
Click-through rate (CTR) measures how well your ads engage users by calculating the percentage of impressions that result in clicks.
CTR Formula:
CTR = (Total Clicks / Total Impressions) × 100
CTR = (100 / 1,000) × 100 = 10%
This means that 10% of the people who saw your ad clicked on it.
A high CTR indicates strong ad engagement and can reduce eCPC by spreading the budget over more clicks, provided those clicks lead to meaningful conversions.
Benchmarks: eCPC and CTR Across Regions and Verticals
Global eCPC Benchmarks
The global median eCPC across verticals decreased from $0.04 in 2023 to $0.03 in H1 2024.
North America: $0.09 (down from $0.10)
Europe: $0.02 (down from $0.03)
APAC: $0.01 (down from $0.02)
LATAM and MENA: Consistent at $0.01
Global CTR Benchmarks
The global median CTR increased from 10.4% in 2023 to 11.3% in H1 2024.
North America: 16.1% (down from 16.5%)
Europe: 14.4% (up from 12.8%)
APAC: 10.9% (steady)
LATAM: 9.2% (up from 8.5%)
MENA: 12.5% (down from 14.1%)
eCPC and CTR by Vertical
eCPC Benchmarks by Vertical
Finance: $0.24 (highest)
Health & Fitness: $0.20
Utility Apps: $0.13
Social Apps: $0.11
Shopping Apps: $0.07
Entertainment: $0.04
Mobile Games: $0.02 (with subgenres like hyper-casual and hybrid casual at $0.02-$0.03)
CTR Benchmarks by Vertical
Mobile Games: 14.8% (highest)
Entertainment: 7.3%
Health & Fitness: 6.9%
Utility Apps: 6.2%
Shopping Apps: 3%
Social Apps: 2.3%
Finance Apps: 1.8% (lowest)
eCPC and CTR by Region and Vertical
eCPC by Region and Vertical
Entertainment: $0.10 in North America; $0.01 in APAC and LATAM; $0.04 in Europe
Mobile Games: $0.07 in North America; $0.01 in APAC, Europe, and LATAM
Utility Apps: $0.27 in North America; $0.08 in LATAM; $0.07 in Europe; $0.04 in APAC
CTR by Region and Vertical
Entertainment: APAC leads with 13.8%, followed by Europe at 9.9%, and North America at 7.9%
Mobile Games: North America at 19.8%, Europe at 18%, APAC at 13%, LATAM at 11.1%
Utility Apps: Europe tops with 6.6%, followed by North America at 6.3%, and APAC at 6.1%
How to Reduce eCPC and Improve CTR
Refine Audience Targeting: Use real-time data to segment audiences and focus on users with high intent. Retargeting campaigns can re-engage users and increase CTR.
A/B Test Ad Creatives: Experiment with visuals, messaging, and calls-to-action to identify the best-performing combinations.
Optimize Placement and Frequency: Test ad placements across platforms like in-app ads, social media feeds, and interstitials to find the most effective channels. Maintain optimal ad frequency to balance engagement and budget.
Leverage Data Analytics: Monitor campaign metrics and adjust targeting, bidding, and creative strategies based on performance insights.
Conclusion
Understanding eCPC and CTR benchmarks allows app marketers to assess performance, optimize budgets, and drive better results. By combining regional and vertical insights with targeted strategies, you can reduce costs, improve engagement, and achieve your campaign goals effectively. Are you prepared to transform your game's outreach?
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