Multi-dynamic competitiveness of mobile advertising systems: Beyond a minimalist approach

The research conducted to analyze mobile advertising through Android mobile applications platforms and its impact on publisher's cost and revenue maximization. There are various pricing models used in advertising includes CPM, CPC, CPA, and CPI. Mobile advertising is the fastest-growing industry as of the dramatic rise in the usage of smart phones making this platform increasingly attractive for businesses to advertise. Advertising is an essential component and publishers gain revenues through these applications. The research conducted is based on Positivism research paradigm and research is secondary data analysis of mobile applications pricing models. This research study is focused on highlighting the economic incentives and tradeoffs for advertisers and publishers by evaluating some of the commonly used pricing models in this industry and measuring their effectiveness. The secondary was collected from Appodeal, Thomson Reuters and android application mobile rates websites for analysis of pricing models of Android in US and values are considered in dollars. The time series and data of CPM, CPC, CPA, and CPI with dependent variables publishers' revenues of last 5 years month wise figures from January 2018 to December 2018 has been collected for secondary data analysis. The analysis was performed through E-views 9.5 software and econometric models applied. The research analysis applied Unit root test performed for analyzing the Stationarity of data, regression analysis performed to evaluate the significance of models, co-integration applied to analyze the long-term relationship of these pricing model with revenues optimization. The results analysis shows that the data is nonstationary and first difference applied to convert data into stationary data and then regression analysis performed. The regression analysis shows the models CPM and CPA are effective models and the values are significant and having impact of revenues maximization of publishers and effective models for advertising, while the CPI and CPA are not significant in this case based on collected time series data. The research implication shows that marketers and mobile application companies must focus on CPM and CPC as pricing models for advertising while using android mobile applications.