MoPub, the world’s leading ad server for smartphone app publishers, has released their 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.

MoPub is the largest exchange barometer for mobile advertising spending and trends. The data is representative of 45 billion monthly ad impressions across verticals, aggregated from smartphone applications, advertisers and demand side platforms on MoPub Marketplace.

The data in MoPub Marketplace represents quarterly trends in advertiser demand, impression prices, and mobile device inventory, without any ad network data. The Mobile Advertising Marketplace Report highlights overall trends in competitiveness for mobile ad supply through three key indices: CPM, CTR and Competitive Factor (buyer bids per impression). The data covers month-over-month trends across factors that dictate revenue for mobile application publishers.

Mobile Ad Demand Momentum in Q1 2013 Provides An Early Indication of Continued Strong Mobile Ad Growth in 2013

Our three core metrics used to track demand, eCPM, Clear Rate and Bid Depth were higher at the end of Q1 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.

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.

Full report available here.

Source: MoPub Inc.

John Koetsier reports for VentureBeat, “There’s a reason that even though Android has almost caught up to iOS in downloads, it’s still way behind in monetization. Partially, it’s because iTunes has a long and successful history of commercial transactions, so people feel comfortable clicking and shopping and buying on iOS. Partially, it’s because Apple was the leader in mobile for so long. But it’s also because advertisers are simply getting fed up with an Android ecosystem that doesn’t convert very well.”

“Most advertisers and ad exchange partners don’t want to talk on the record, of course. But off the record, they’ll say that Google Play is just not at the quality level of the iOS app ecosystem,” Koetsier reports. “There’s too much crap, too much malware, there’s not the level of quality that iOS has … and there is a missing mass of people on the platform who have confirmed credit card accounts and are, frankly, in the demographic who are willing and able to buy.”

“Not only are 75 cents out of every mobile ad dollar spent on iOS, but iPhone, iPad, and yes, even iPod touch ad rates are much higher. While Android smartphones draw $.50 CPMs (cost per thousand impressions), iPhones pull in $.65 to $.88 CPMs, iPod Touches do $.74 to $.98, and iPads do between $.82 and $1.16,” Koetsier reports. “So while tablets are the highest-revenue mobile ad platforms, Android tablets only account for a skinny single percent of all mobile ad sales… Click-through rates on Android devices are about half as good as those on iOS devices, with under one percent on Android tablets and just over a percent on Android smartphones. Meanwhile, iOS devices such as iPads pull in 2-2.5 percent click-through rates, and iPhone pulls in 1.4-1.7 percent.”

Read more in the full article here.

MacDailyNews Take: As we wrote last November:

Android can have the Hee Haw demographic. Apple doesn’t want it or need it; it’s far more trouble than it’s worth.

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