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.
Related articles:
Android owners aren’t real smartphone owners – March 12, 2013
iPhone users watch twice as much online video as those with Android phones – March 12, 2013
Where are the Android users? – March 11, 2013
With 78% share, Apple’s iOS tightening its grip on the enterprise and taking share from Android – March 8, 2013
Apple rules the skies with 84% in-flight share vs. Android’s 16% – March 7, 2013
Apple iPad continues domination with over 80% usage share in U.S. and Canada – March 7, 2013
comScore: Google’s Android, Samsung continue to lose U.S. share to Apple’s iOS, iPhone – March 6, 2013
Apple iOS dominates mobile video viewing with 60% share vs. Android’s 32% – February 13, 2013
Android’s Web share down 13% since November; Apple’s iOS now over 60% – February 1, 2013
Android’s unit share growth has not hurt Apple’s profit share – February 26, 2013
Apple iOS dominates mobile video viewing with 60% share vs. Android’s 32% – February 13, 2013
Android’s Web share down 13% since November; Apple’s iOS now over 60% – February 1, 2013
IDC: Apple dominates worldwide tablet market with 43.6% unit share – January 31, 2013
The Android engagement paradox – November 26, 2012
People buy more Android phone units and do less with them vs. Apple’s revolutionary iPhone – November 14, 2012
Study: iPhone users vastly outspent Android users on apps, respond much better to ads – August 20, 2012
The question is how Apple can benefit .
Since developers are monetized through advertising the result is more and better apps in iOS resulting in more sales of iDevices. Apple created iAd to provide developers more income as opposed to providing dollars for Apple.
It will be sweet when or if Apple reaches a point where they can completely reduce or eliminate Google’s advertising presence on iOS devices.
Apple will do to Google what they are now in process of doing to Samsung: cut them out if the equation. It may take time, but they will do it.
I haven’t owned shares of AAPL in more than 2 years. I sold my AAPL calls. Sold them in September 2012 with AAPL at $700. Sat on the sidelines for three weeks, then started buying AAPL puts. Have ridden AAPL all the way down since October 2012. Have made even more money as AAPL went down than I did as it went up.
That explains all your rants, FUD and self promotion now, doesn’t it lowlife?
GM,
if you are speculating in stocks…… well you are not doing very well. 🙁
If you are investing in stocks, then you may be doing very well, depending on where you bought. Apple is worth way more than their current stock price. The value will go back up. It will just take a while.
No statement no truth . By the way , I shorted AAPL at 705. ( no statement provided )
If user experience is supposed to be better on iOS, I’d not be bragging about advertisement inundation.
is it really? I don’t believe it anymore. as far as I know, world dominate OS is android. it is still way bigger than iOS. why? there are lots of cheap smartphones which are based on android. do you even look at Chinese market? do you have any idea when Chinese want to buy iphone, ipad, how much money or month they have to save for these? they are very expensive to get one. average people can’t afford to get. android phones are cheaper, easily get good one. game is over. 70% of share? what are you smoking or something?
The share of Android tablet spending was negligible at less than 1 percent, according to MoPub. Android phones, which took about a quarter of all mobile ad spending, saw the reverse pattern from the iPad: spending on the platform increased in February before dipping back down in March. MoPub explains that “In Q1 2013, many ad buyers discovered the increase in user value on Android devices was offset by a poor conversion rate of users from these ads.”
iphone 6