Mobile Video Ads Outperform All Other Formats, Delivering 11x Higher eCPMs, According to New Report from Smaato

Posted on June 30th, 2016

Music apps are the most lucrative category for in-app mobile video ads, with a +54% eCPM uplift for publishers

SAN FRANCISCO – June 30, 2016 – Smaato, the leading global real-time advertising platform for mobile publishers and app developers, today released its Q1 2016 Global Trends in Mobile Advertising report. To identify the trends, Smaato analyzed data from billions of mobile ad impressions served on its exchange during the first quarter of 2016.

The report shows strong growth for mobile video advertisements, delivering 11 times higher eCPMs for publishers – a 1,042 percent uplift compared to any other ad format. The report shows there are certain contexts in which mobile video ads drive higher performance. Mobile video ads drive higher revenue when shown in-app versus in the mobile web, with iOS apps delivering almost 3x higher eCPMs over the mobile web.

In terms of app categories that deliver highest eCPMs: music saw a +54% eCPM uplift, followed by Video & Computer Games (+38%), Society (+29%) and then Real Estate (+15%). This makes intuitive sense, as people using apps in the Arts and Entertainment category are already being exposed to rich media (including sound), and mobile video ads may seem less invasive.

Additional findings in the Q1 2016 Global Trends in Mobile Advertising report include:

  • Mobile ad spend grew +89% in Q1 year-over-year, with the Americas fueling the charge by posting +123% ad spend growth.
  • Among developing markets, South America became the “Emerging Mobile MVP” with almost double the indexed eCPM of APAC during Q1 2016.
  • Larger ad formats like interstitials (320×480) delivered triple the eCPM for publishers versus traditional banner ads (320×50).
  • As the world’s second largest advertising market, China saw an astounding +1,198% rise in ad spending.
  • Countries that celebrated Chinese New Year saw a +33% bump in pre-holiday mobile ad spending on average over their APAC neighbors who did not celebrate the holiday.

“Mobile video advertising is showing enormous growth potential, helping publishers to boost their monetization efforts and advertisers to engage their target audiences better,” said Ragnar Kruse, CEO and co-founder of Smaato. “It’s very encouraging to see the continued overall strength of quarterly mobile ad spend growth, which is up 89% globally. I’m also impressed by the immunity of mobile ad spend to downward macroeconomic factors. For example, Brazil’s emerging mobile market saw quarterly mobile ad spend grow a surprising +121% in Q1 year-over-year – almost as much as the healthy U.S. market at +130% – despite major economic and political challenges.”

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