Cost Per Tap (CPT) is a metric used in mobile advertising to measure the cost incurred by advertisers for each tap or interaction with their mobile ad. CPT represents the total cost of advertising divided by the total number of taps or interactions generated within a specific time period.
CPT is particularly relevant for mobile ad formats that require user interaction, such as banner ads, interstitial ads, or native ads. It helps advertisers assess the cost efficiency of their mobile ad campaigns in terms of user engagement and interactions.
The formula
CPT = Total Cost / Total Taps
Some key components
- Total Cost: This refers to the total amount spent on advertising within a specific time period. It includes costs such as ad spend, media buying fees, creative production costs, and any other associated expenses.
- Total Taps: This represents the total number of times users tap or interact with the mobile ad within the same time period. A tap is typically counted when a user clicks, expands, or interacts with the ad in a meaningful way.
By dividing the total cost by the total number of taps, we obtain the average Cost Per Tap.
For example, if a mobile advertising campaign costs $1,500 and generates 5,000 taps, the Cost Per Tap would be calculated as follows:
CPT = $1,500 / 5,000 = $0.30
In this case, the average cost per tap would be $0.30.
CPT is an important metric for mobile advertisers as it helps evaluate the cost effectiveness and engagement of their mobile ad campaigns. By comparing the CPT to other key performance indicators such as click-through rates (CTR), conversions, or return on ad spend (ROAS), advertisers can assess the success and ROI of their mobile advertising efforts.
To optimize and improve CPT, advertisers can employ various strategies and tactics, such as targeting the right audience for the mobile ad, optimizing ad creatives for better engagement and clickability, utilizing ad formats and placements that encourage taps and interactions, leveraging mobile-specific ad technologies, and continuously monitoring and optimizing campaign performance.
It’s worth noting that CPT can vary depending on factors such as the ad format, target audience, mobile platform, and the specific call-to-action (CTA) of the ad. Different ad formats and CTAs may yield different interaction rates and costs, so it’s important to align the objectives of the campaign with the desired user behavior and measure CPT accordingly.
In summary, Cost Per Tap (CPT) is a metric that measures the cost incurred by advertisers for each tap or interaction with their mobile ad. It helps assess the cost efficiency and engagement of mobile advertising campaigns. CPT is commonly used for ad formats that require user interaction. Advertisers can optimize CPT by targeting the right audience, optimizing ad creatives, utilizing effective ad formats and placements, and continuously monitoring and optimizing campaign performance.