Smaato Global Trends in Mobile Advertising Report ... Global Trends in Mobile Advertising Q3 2016...

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Transcript of Smaato Global Trends in Mobile Advertising Report ... Global Trends in Mobile Advertising Q3 2016...

  • Global Trends in Mobile Advertising Q3 2016

  • Copyright © 2017 Smaato Inc. All Rights Reserved.

    Global Trends in Mobile Advertising Q3 2016 Smaato’s Global Trends in Mobile Advertising report offers key insights into the mobile programmatic advertising landscape worldwide during Q3 2016. Our platform delivers up to 300 billion ad impressions each month, which are auctioned through a network of over 450 demand partners. Please note that this report reflects trends across Smaato’s global base of publishers, advertisers and users during Q3 2016. Each report offers a quarterly snapshot, so specific data and observations may not be comparable with previous reports.

    Executive Summary During Q3 2016, we observed the following five global trends across the mobile landscape:

    Strong Mobile Ad Spending Growth Continued in Q3 2016 Global mobile ad spending continued to post robust growth (+64%) in Q3 versus the same quarter last year on the Smaato platform. Growth was driven primarily by the Americas (+77%) and APAC (+64%) regions, followed by EMEA (+22%). In each region, the 2 biggest markets each saw healthy growth and were the primary regional growth drivers. Japan, Turkey and Scandinavia were also regional growth standouts.

    App Domination Accelerated, but Mobile Web Still Has Value As in previous quarters, mobile ad spending continued to shift in-app, which picked up 8 share points versus mobile web ad spending in Q3. In-app advertising now solidly dominates with 81% global ad spending share. Nonetheless, mobile web also continues to grow in absolute terms, up almost 4% from the same quarter last year with rising eCPMs in Q3.

    Android Dethrones iOS as eCPM King, Apple Remains Top Device Brand for Ad Spending Android overtook iOS as the eCPM leader on the Smaato platform and also remained the overall mobile ad spending leader (55% share). Despite device-side stumbles by both Apple and Samsung in Q3, Apple remained the global device brand that saw the highest ad spending on the Smaato platform (41% share), driven by its still high (but slightly lilting) eCPMs and Android OS device fragmentation. Samsung remained #2, even with its Note 7 debacle.

    Men are from Android, Women are from iOS An ad request coming from a man’s smartphone was more than three times as likely to come from an Android device than an iOS device. However, an ad request coming from a woman’s smartphone was 1.5 times more likely to come from an Apple (iOS) device. Notably, this trend is strengthening.

    Video Took Off in Q3 2016 Video is surging on the Smaato platform, with video ad spending up 557% in Q3 versus the previous quarter and video eCPMs growing 62% as well. Average video eCPMs in Q3 were more than 9 times higher than the average overall eCPMs on the Smaato platform. 90% of all video ad requests came from apps.

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  • Copyright © 2017 Smaato Inc. All Rights Reserved.

    Strong Mobile Ad Spending Growth Continued in Q3 2016

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    Global mobile ad spending continued to post robust growth (+64%) in Q3 2016 versus the same quarter a year ago on the Smaato platform. Growth was driven primarily by the Americas (+77%) and APAC (+64%) regions, followed by EMEA (+22%).

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    Global Ad Spending Growth by Region & Top Countries Q3 2016 vs. Q3 2015

    Source: Smaato Publisher Platform (SPX) - Q3 2016

    +885%

    +223%

    +204%

    +178%

    +140%

    +131%

    +82%

    +81%

    +36%

    Puerto Rico

    Chile

    Uruguay

    Canada

    Colombia

    Costa Rica

    Paraguay

    Peru

    USA

    GLOBAL +64%

    APAC +64% AMERICAS +77% EMEA +22%

    China

    Malaysia

    Vietnam

    Philippines

    Thailand

    Japan

    Taiwan

    +486% +300%

    +229%

    +113%

    +107%

    +99%

    +60%

    +43%

    +38%

    +36%

    +33%

    +334%

    +89%

    +81%

    +79%

    +60%

    +59%

    +52%

    +42%

    +33%

    Singapore

    Egypt

    Turkey

    Ireland

    Sweden

    France

    Denmark

    Spain

    South Africa

    Germany

    United KingdomAustralia

    Hong Kong

  • Copyright © 2017 Smaato Inc. All Rights Reserved. 3

    Top 2 Biggest Regional Mobile Ad Spending Markets (by Market Size) Market Size1 and Q3 2016 Growth2

    AMERICAS EMEAAPAC

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    2

    $45.67USA China UK

    Canada Japan Germany$1.80

    +81%

    +140%

    1

    2

    $27.89

    $4.57

    +486%

    +334%

    1

    2

    $8.01

    $2.56

    +33%

    +36%

    2016 Market Size ($ Billions)1

    2016 Market Size ($ Billions)1

    2016 Market Size ($ Billions)1

    Ad Spending Growth

    Q3 2016 vs. Q3 20152

    Ad Spending Growth

    Q3 2016 vs. Q3 20152

    Ad Spending Growth

    Q3 2016 vs. Q3 20152

    Sources: 1 eMarketer, September 2016; 2 Smaato Publisher Platform (SPX) - Q3 2016

    Aside from the biggest regional markets by overall ad spending, key notable regional growth standouts were:

    • Turkey (+300%), EMEA’s overall growth leader, is a highly wireless nation considered one of the world’s digital banking leaders. With one of Europe’s youngest populations (some 60% of Turks under 35, and 40% under 251), Turkey leads the world in percentage (44%) of consumer purchases made from a mobile device (global average is 31%)2.

    • Scandinavia continues to be strong, as already noted last quarter in our previous report.

    • Latin American countries, such as Paraguay (+885%), Chile (+204%), Uruguay (+178%), Columbia (+131%) and Peru (+36%), all grew as a result of relatively solid economies and modest advertiser spending in the same quarter last year.

    1 Turkey Leapfrogs Europe In Mobile Services, Global Finance Magazine, gfmag.com, October 14, 2016 2 A Global Perspective of Mobile Commerce, IAB On Device Research, September 2016

    In each region, the Top 2 biggest mobile ad spending markets each saw healthy growth in Q3 2016 versus Q3 2015 and were key drivers of regional growth on the Smaato platform.

    https://www.smaato.com/resources/reports/global-trends-report-q2-2016/ https://www.gfmag.com/magazine/october-2016/turkey-leapfrogs-europe-mobile-services http://www.iab.com/wp-content/uploads/2016/09/2016-IAB-Global-Mobile-Commerce-Report-FINAL-092216.pdf

  • Copyright © 2017 Smaato Inc. All Rights Reserved. 4

    App Domination Accelerates, but Mobile Web Still Has Value As in previous quarters, in-app continued to pick up mobile ad spending share versus mobile web in Q3 2016. In-app now solidly dominates ad spending on the Smaato platform with 81% share, up 8 share points versus the same quarter last year.

    Moreover, the dominance of in-app over mobile web ad spending is a worldwide phenomenon, true in both advanced as well as emerging markets. In most of the biggest markets except Indonesia, in-app mobile ad spending outpaces mobile web ad spending by a ratio of at least 2-to-1 (and it’s really close to 2-to-1 in Indonesia as well).

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    Mobile Web

    In-App

    27%

    2016 2015

    2014

    33%

    19%

    81% 73% 67%

    In-App vs. Mobile Web Share of Ad Spending Revenue Q3 2014 - 2016

    Source: Smaato Publisher Platform (SPX) - Q3 2016

  • Copyright © 2017 Smaato Inc. All Rights Reserved. 5

    Source: Smaato Publisher Platform (SPX) - Q3 2016

    Mobile Web

    In-App

    USA

    83%

    Australia

    70%

    China

    99%

    Germany

    94%

    South Korea

    81%

    Singapore

    73%

    Brazil

    84%

    Turkey

    89% Mexico

    87%

    Russia

    97%

    India

    83%

    67%

    South Africa

    Indonesia

    63%Argentina

    85%

    France

    88%

    UK

    78%

    Japan

    67%

    Canada

    87%

    Sweden

    90%

    Why is in-app spending so much higher? Mobile users worldwide are spending more and more time in apps (i.e. 79% of all ad requests on the Smaato platform come from apps) and advertisers are willing to pay more for the superior user tracking and data availability of the in-app environment. In-app eCPMs are, on average, more than two times higher than mobile web eCPMs on the Smaato platform, a trend that has remained consistent with the same quarter last year.

    In-App vs. Mobile Web Share of Ad Spending in Select Countries Q3 2016

  • Copyright © 2017 Smaato Inc. All Rights Reserved.

    Sources: 1 Smaato Publisher Platform (SPX) - Q3 2016 2 Smaato Publisher Platform (SPX) - Q3 2016 vs. Q3 2015

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    Fast Stats: In-App vs. Mobile Web

    Mobile Web

    In-App

    In-App eCPMs

    2x Higher than Mobile Web

    eCPMs1

    In-App

    79% of all

    Ad Requests1

    In-App Ad Request

    Growth2

    +53% Mobile Web

    21% of all

    Ad Requests1

    Mobile Web Ad Request Growth2

    +4%

    Mobile Web eCPM Growth2

    +10%

    Nonetheless, mobile web is far from dead and still represents 21% of all ad requests and 19% of all mobile ad spending on the Smaato platform, up almost 4% from the same quarter last year. Notably, Q3 2016 mobile web eCPMs are on the rise, increasing more than 10% on average in Q3 2016 versus the previous quarter, indicating advertise