Interstitial vs Banner Ads: Which Earns Higher CPMs?

In digital advertising selecting the right ad format can play a very important role in maximizing revenue from various options to choose from interstitial and banner ads are two common ad formats with their features and effects on user experience and earnings. 

We will be doing in-depth interstitial and banner ad breakdowns to find out what formats generate more revenue and how publishers can use them to maximize revenue.

Understanding Interstitial Ads

These are full screen ads that appear at points, such as between game levels or while navigating between content sections.

Compared to standard ad formats these ads are immersive and are designed to engage users and capture their full attention.

Features of Interstitial Ads:

  • These ads are full screen, removing all other distractions and keeping user attention only on the advertisement.
  • By aligning with the user’s navigation flow during transitions, like in between games or content they aim to minimize disruption.
  • These can be in images, videos, or interactive content, offering a rich media experience.

Understanding Banner Ads

These are static or animated ads that appear on either the top, bottom or next to the content but these ads are less effective in capturing user attention they can blend in without interfering with user experience.

Features of Banner Ads:

  • These ad sizes are 728×90 and 300×250 pixels These are responsive ads that work with different screen sizes.
  • You can place them between content this lets users engage without interrupting their experience.
  • Simple to create and easy to place making them a popular choice for publishers and advertisers.

Comparison of CPMs: Interstitial vs Banner Ads

Cost Per Mille (CPM) is the revenue per 1,000 ad impressions.

The CPM between interstitial and banner ads differs in price because they have different engagement levels and responsiveness based on the user experience offered.

Interstitial Ads CPM:

Based on studies interstitial ads have higher CPM than banner ads.

Research shows that interstitial ads outperform banner ads by an average of more than 4,000%.

The difference is that fullscreen interstitials command better engagement from users and higher click-through rates. 

Banner Ads CPM:

Banner ads have lower CPMs because they are less intrusive and one disadvantage of these is users either consciously or subconsciously ignore banner ads.

The average CPM for banner ads in the US is around $0.60 for Android and $0.27 for iOS.

Factors that Affect CPM

Many factors are responsible for impacting the CPM rates of interstitial and banner ads.

1. Engagement:

These ads are more immersive with a higher engagement rate leading advertisers to pay premium rates

2. Placement and frequency:

Higher CPM for interstitials, but the user experience suffers if too many ads appear on the user feed which could lead to uninstalling apps or leaving websites.

Whereas banner ads can be shown more frequently and are less intrusive they earn less per impression.

3. Location:

CPMs vary based on location. The USA and Europe generally offer a higher CPM because of increased competition for ad space.

4. Quality:

High-quality, relevant ads to the target audience can command better CPMs, regardless of format.

Strategies for Maximizing Revenue

1. Use both Ads:

Find a balance so you take advantage of both ad formats.

Use interstitial ads at natural transition points to maintain user experience, and use banner ads so you can still maintain ad visibility without affecting user experience.

2. A/B Testing:

Test different ad placements, frequency, and formats to find the right combination of both ad formats ensuring a good user experience.

Analyse user engagement and revenue metrics to make informed decisions. 

3. Focus on user experience:

Prioritize user experience ahead of any aggressive ad rollout; ensure that interstitial ads have exit options and that your banners do not obscure content.

4. Optimize Location:

Adjust ad strategies based on regional performance data, allocating premium ad formats to high-CPM regions to maximize earnings.

5. Focus on Quality:

Focus more on delivering high-quality ads that align with user interests, increasing the chances of interaction and conversion.

Conclusion

Interstitial and banner ads have different benefits and challenges. Interstitial ads provide higher CPMs due to immersive transitions but must be used in a way you don’t affect user experience.

Banner ads provide steady revenue without affecting user experience but have low CPM.

Publishers could maximize user engagement and ad revenue by combining both ad formats and continue to optimize for performance

How MagicBid Helps You Earn More

Interstitial Ads vs Banner Ads

If you’re not making the most of your ad space, you’re leaving money on the table.

MagicBid helps web, app, and CTV publishers maximize revenue with smarter ad placement and optimization tools.

  • Web Monetization: Get better ad visibility, higher engagement, and more revenue from every impression.
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  • CTV Monetization: Deliver high-quality, tailored ad experiences that keep viewers engaged and advertisers paying more.

With MagicBid’s advanced ad tech and expert support, you can turn your traffic into higher earnings without the guesswork.

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