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Transcript of Global Trends in Mobile Advertising Q2 2017 - · PDF fileCopyright © 2017 Smaato Inc. All...

  • Global Trends in Mobile AdvertisingQ2 2017

  • Copyright 2017 Smaato Inc. All Rights Reserved. 1

    Q2 2017 Global Trends in Mobile AdvertisingEach quarter, Smaato offers key insights into the worldwide mobile programmatic advertising landscape based on in-depth analysis of the 1.5+ trillion ad impressions delivered on the Smaato platform in that quarter. Our platform reaches over a billion unique users globally and delivers 500+ billion ad impressions each month, which are auctioned through a network of over 450 of the worlds largest DSPs and ad network demand partners. Please note that this report is a quarterly snapshot of trends across Smaatos global base of publishers, advertisers and mobile device users during Q2 2017; specifi c data and observations may not be comparable with previous reports.

    Executive SummaryDuring Q2 2017, six global mobile advertising trends observed on the Smaato platform were:

    Advertisers Continued to Follow Eyeballs to MobileGlobal mobile ad spending on the Smaato platform saw healthy growth in Q2, as advertiser spending continued to follow consumer attention to mobile. The Americas region most notably Brazil, Colombia, Canada and the US experienced particularly robust mobile ad spending growth. Mobile advertisings value to advertisers also continued its upward trend, with APACs mobile eCPMs more than doubling and EMEA also posting strong mobile eCPM growth.

    1.

    In-App Took an Even Bigger Bite of the Mobile Ad Spending PieConsumers appetites for mobile apps continued to grow in Q2 2017. In-app ad spending posted a record-high share of total mobile ad spending on the Smaato platform in Q2 2017 (94%) up 13 share points in just one year. Astute advertisers are shifting media spending to in-app, driving in-app eCPMs up +79% from Q2 2016 to Q2 2017. This mobile ad spending migration towards in-app has resulted in in-app ad spaces now being +224% more valuable on average than those on mobile web.

    2.

    Video Was Mobile MVP & Gaming Apps Scored Big With Rewarded VideoWith its exceptionally high user engagement, conversion rates and advertising effectiveness, video was the fastest-growing mobile ad format in Q2 2017, as video mobile ad spending more than doubled (+142%) in one quarter alone. Rewarded video was the fastest-growing format within video, particularly in gaming apps.

    3.

    Android Ruled Mobile Ad Spending as iOS Reigned Over eCPMsAndroid captured the majority of mobile ad spending on the Smaato platform this quarter (55%), but iOS ad space was +18% more valuable to advertisers. The average iOS user also generated 2X more ad spending, received +72% more ads driven by their smartphone behavior differences vs. Android users and viewed 2X more ads than the average Android user.

    4.

    Gender Data Had Advertisers Seeing DoubleThe availability of gender data can massively boost mobile ad values on the Smaato platform, ad requests including gender data earned eCPMs 2.5X higher on average than requests without this data. Analysis of ad requests that provided gender data revealed that while men garnered the majority (56%) of mobile ad spending on the Smaato platform in Q2 2017, female users brought the highest eCPMs (+25% higher than male eCPMs).

    Chinas App Addiction: A Land of Mobile Advertising OpportunityChina is currently home to more smartphone users than the US and all of Europe (including Russia) combined. Furthermore, China is the most app-centric mobile market in the world Chinese consumers spend 99% of their mobile time in-app and use more apps each month than mobile users from any other country. On the Smaato platform, 98% of mobile ad spending in China was spent in-app in Q2 2017, and in-app eCPMs were more than 3X higher than those of mobile web.

    5.

    6.

  • Copyright 2017 Smaato Inc. All Rights Reserved. 2

    Advertisers Continued to Follow Eyeballs to MobileBoth mobile ad spending and mobile ad values continued to thrive in Q2 2017, as the global economy became increasingly mobile-fi rst. While mature mobile markets such as the US, the UK and Canada delivered healthy mobile ad spending growth, accelerating consumer time spent on smartphones and the resulting advertiser spending shift toward mobile, particularly in the emerging markets of Latin America and APAC, contributed to the highest mobile spending growth rates globally for these emerging markets in Q2 2017.

    On the Smaato platform, the Americas region posted the highest Q2 2017 mobile ad spending growth versus the same quarter last year driven by Brazil, Colombia, Canada and the US followed by the APAC region, where South Korea, Vietnam, Hong Kong and Singapore were notable standouts.

    Source: Smaato Publisher Platform (SPX) - Q2 2017 vs. Q2 2016

    Americas Drove Global Q2 Mobile Ad Spending Growth

    Mobile Ad Spending Growth by CountryQ2 2017 vs. Q2 2016

    Very High Moderate N/A

    Ad Spending Growth Q2 2017 vs. Q2 2016

    1

  • Copyright 2017 Smaato Inc. All Rights Reserved. 3

    In terms of eCPM growth, APAC was the top-performing region in Q2 2017. APACs average eCPM more than doubled (+105%) versus the same quarter last year, with the largest eCPM increases coming in South Korea, Japan, Vietnam and Indonesia. EMEA also delivered strong overall eCPM growth (+74%), with Norway, Poland, Switzerland, Russia, Sweden, Denmark, Netherlands and Italy leading the way.

    Source: Smaato Publisher Platform (SPX) - Q2 2017 vs. Q2 2016

    APAC Markets Led Global eCPM Growth

    Top Global Markets by Absolute eCPM and eCPM GrowthQ2 2017 vs. Q2 2016

    USA

    Russia

    Poland

    Switzerland

    Sweden

    Italy

    Netherlands

    Denmark

    Hong Kong

    Canada

    ArgentinaBrazil

    Colombia

    JapanJapan

    India

    SingaporeSingapore

    South Korea

    Indonesia

    Vietnam

    Norway

    Mexico

    Ab

    solu

    te Q

    2 20

    17 e

    CP

    M

    UK

    Germany

    China

    Very HighModerate

    Mo

    der

    ate

    Ver

    y H

    igh

    eCPM Growth: Q2 2017 vs. Q2 2016

    Americas

    EMEA

    APAC

  • Copyright 2017 Smaato Inc. All Rights Reserved. 4

    In-App Took an Even Bigger Bite of the Mobile Ad Spending PieApps were a key contributor to mobile ad spending growth in Q2 2017, as app usage continued to rise a trend that is expected to continue as an overall media growth driver over the next 5 years.

    Apps own consumers mobile attention. Currently already accounting for 7 out of every 8 minutes of usage time on smartphones, apps dominant share of consumer attention continues to increase.1 In-apps projected 89% share of US smartphone users total mobile time this year is up 3 share points from 86% last year. Meanwhile, time spent on smartphones in a mobile browser is forecasted to remain stagnant in 2017 at 26 minutes per day.2 Furthermore, consumers love affair with mobile apps still has a lot of upward potential. By 2021, time spent in-app is expected to more than double from 1.6 trillion hours to 3.5 trillion hours per year.3

    Source: Smaato Publisher Platform (SPX) - Q3 2016 - Q2 2017

    In-App Dominated Mobile Ad Spending Globally

    In-App vs. Mobile Web Share of Worldwide Mobile Ad SpendingQ3 2016 - Q2 2017

    Mobile Web

    In-App

    Q2 2017

    Q1 2017

    Q4 2016

    Q3 2016

    1 comScore Media Metrix Multi-Platform & Mobile Metrix, U.S., June 20172 eMarketer, April 20173 AppAnnie, June 2017

    In Q2 2017, mobile ad spending continued to follow consumers into in-app, with in-apps share of total mobile ad spending (a remarkable 94% this quarter) reaching a new record high versus mobile web on the Smaato platform. Furthermore, in-app has consistently picked up signifi cant share in each quarter over the past year.

    2

  • Copyright 2017 Smaato Inc. All Rights Reserved. 5

    Source: Smaato Publisher Platform (SPX) - Q2 2017

    Over the past year alone, in-app picked up almost 20 mobile ad spending share points over mobile web, and that share gain came from an already high base. By region, the Americas saw the highest in-app share of mobile ad spending in Q2 2017 (97%), exceeding the global average by three points a big change from a year ago, when the Americas region was the global in-app ad spending share laggard. In-app gained a whopping 25 share points in the Americas from Q2 2016 to Q2 2017, while EMEA and APAC also saw in-app share gains of +12 and +3 points respectively.

    Americas mobile in-app ad spending share increases were driven by the US, where high smartphone user penetration (97%) met sharply-rising consumer time in mobile apps.4 In 2017, the average US adult will have spent 2 hours and 25 minutes per day using mobile apps a jump of 10% over last year and slightly higher than previously forecast and time spent with mobile apps will have reached 20% of average daily total media time.5

    Its not just shifting consumer attention that is driving mobile ad spending budgets toward in-app. The in-app environment offers advertisers unprecedented new targeting reliability, cross-device tracking and traffi c quality measurement opportunities available in no previous advertising medium. As the cookie rapidly becomes a thing of the past, especially after new European regulations go into effect in May 2018, in-apps already cookieless environment offers many advantages for advertisers that mobile web cannot.

    Americas Led All Regions in In-App Ad Spending

    In-App vs. Mobile Web Share of Mobile Ad Spending by RegionQ2 2017

    Q2 2017: 94Q2 2016: 75

    Q2 2017: 6Q2 2016: 25

    In-App Mobile Web In-App Mobile Web In-App Mobile Web

    AMERICAS EMEA APAC

    In-App Mobile Web

    Q2 2017: 97Q2 2016: 72

    Q2 201