Q1 Ends with Mobile Ad Demand Momentum that Surpasses Q4 and Sets Up Significant Growth in Q2
Highlights include dramatic growth in demand momentum, higher CPM premiums for iOS and iPad and significant adoption growth of rich media ad units.
Today we released The Mobile Advertising Marketplace Report, our comprehensive quarterly report showcasing 2013 Q1 trends in mobile advertising monetization and demand for smartphone ad inventory. The Mobile Advertising Marketplace Report reflects data from MoPub’s real-time bidding product MoPub Marketplace, the world’s largest mobile advertising exchange.
The data is representative of 45 billion monthly ad impressions across two dozen verticals, aggregated from smartphone applications, advertisers and demand side platforms on MoPub Marketplace.
- At the end of Q1 2013 there was greater momentum and demand than at the end of Q4 2012.
- Our three core metrics used to track demand, eCPM, Clear Rate and Bid Depth were higher at the end of Q1 2013.
- Improved insights into users’ mobile behavior and adoption of higher impact ad units sets up continued momentum in Q2 2013.
Historically, there is a dip in ad spend following the holidays as we head into the New Year. This year, we witnessed an extended down cycle, followed by an unprecedented influx in ad spend at the end of Q1, which resulted in quarter over quarter growth (Q1 2013 over Q4 2012).
In 2012, major advertising agency accounts went into review delaying planning of 2013 budget decisions and campaigns. Uncertainty created by the government sequester debate led to a pause in ad spend and additional delays.
Mobile media buyers took advantage of an extended seasonal down cycle in Q1 to make significant improvements to ad spend optimization and to refine opportunistic tactics. This allowed mobile to capture a larger share of ad spend, once it ramped up, creating a sudden and dramatic spike in ad spend in March. This significant increase in ad spend bodes well for the remaining quarters in 2013.
Highlights from the 2013 Q1 Mobile Advertising Marketplace Report include:
iOS Dominating Android: The CPM premium on impressions for iOS over Android, iPad over iPhone and iPhone over Android Smartphone increased from January to March to 39.4%, 32.0% and 76.0% respectively. Monthly Ad spend share on iPhone grew 12.4% over the quarter and now accounts over 50% of ad spend on the exchange or more than two times the share of Android Smartphones
Larger Rich Media Ads Show Their Value: Ad spend shifted to more engaging and interactive ad units as the CPM premium for impressions that supported MRAID rich media increased almost 9.2% and their share of ad spend grew 15.7% to 79.1%. Adoption of larger ad sizes grew exponentially as the CPM increased 161.8% and ad spend share increased 214.7% for 480X320 impressions; conversely small ad sizes like 320X50 experienced CPM and ad spend share declines
Android Tablets Not A Factor: Android tablets have failed to gain traction, accounting for less than 1.0% of ad spend
Opportunistic Mobile Ad Buys: Mobile media buyers opportunistically shifted ad spend in real time based on insights about user behavior during severe weather storms, holidays and live mass media events
The data reflected here is solely representative of exchange-traded media on MoPub Marketplace and does not include any ad network or ad network mediation data. MoPub does not sell advertising and does not buy inventory. MoPub is a neutral and private entity with no ad network affiliation. Inventory on MoPub Marketplace is primarily from mobile application publishers with users in North America, Europe, Asia, and Latin America.
To download the full report, please click here.