MOBILE AD TRENDS 2015
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- Jeffry Webster
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1 MOBILE AD S 2015
2 INNERACTIVE KEY S Inneractive s mobile programmatic platform processes billions of ad requests daily from around the world. We are strong believers in leveraging our data in order to provide our clients, and the industry, with insights into how mobile players are acting and reacting was an incredible year for mobile, as mobile ad spend officially surpassed desktop ad spend, new ad units are growing and programmatic is becoming more prevalent. We looked at the activity on Inneractive s platform in order to identify trends that we believe indicate a bigger trend within the industry and provide transparency into the mindset of mobile publishers and advertisers. Here are the five key trends we identified. Traditional ad networks are mastering RTB buying #1 #4 on mobile Publishers and advertisers are getting more comfortable selling and buying mobile video in a programmatic environment #2 More advertisers are bidding on traffic enriched with data and are willing to pay a premium for it #5 US still leads the pack with programmatic, yet other countries are catching up and following suit #3 Higher ecpms for mobile video will drive more publishers to create mobile video inventory ABOUT US Inneractive is a global independent mobile ad exchange focused on powering video and native ads. Our mission is to empower mobile publishers to maximize the full potential of their properties by providing powerful technologies for the buying and selling of mobile ads. Inneractive s programmatic platform includes RTB-based open exchange and Private Pipes, focused on video and native ad solutions. Inneractive is headquartered in Tel Aviv with offices in New York, San Francisco, and London.
3 #1 Traditional ad networks are mastering RTB buying on mobile The mobile programmatic market has been experiencing tremendous growth in the past years and is expected to exceed $20B by 2017, in the US alone. Real-Time Bidding (RTB) technology gives buyers the opportunity to buy on a per-impression basis, thus cherry picking the users they wish to reach. Many of the traditional ad networks have been making the shift into programmatic via RTB and open exchanges. US Mobile Programmatic Ad Spending ($B) $20.5 $9.3 $1.1 $14.9 $2.4 $3.8 $4.4 $8.2 $12.5 $16.7 Display $0.2 Video $4.3 Source: emarketer, Oct We ve been seeing this trend at Inneractive, as well. Four of our top demand partners have been significantly growing their RTB spend and shifting budgets from non-rtb towards RTB. This is a trend we are seeing primarily in the US market but are expecting to soon see in Western Europe and APAC. % of Revenue from RTB (vs. non-rtb) 89% 14% 40% 37% 6% 3% 21% 28% H H AD NETWORK 1 AD NETWORK 2 AD NETWORK 3 AD NETWORK 4
4 #2 More advertisers are bidding on traffic enriched with data and are willing to pay a premium for it As mentioned above, RTB technology is giving advertisers the ability to cherry-pick users. But in order to pick the right user advertisers want to have data on these users. Parameters such as age, gender, location (big on mobile!), OS and connection type, as well as app category and app ID are proving to be incredibly valuable for advertisers, and as a result create value for publishers. At Inneractive we ve seen that requests that come in with data on the user (meaning, requests loaded with at least one parameter) have on average: Fill rates twice as high as non-enriched requests Number of bidders is more than 3 times higher ecpms are ~80% higher for enriched requests
5 #3 Higher ecpm rates for mobile video will drive more publishers to create mobile video inventory Video ads command higher ecpms, in comparison to display. As Inneractive s inventory shifted to video, we have seen a substantial increase in average ecpms, driven partly by the revenue mix shift towards video. Inneractive s average ecpm rates Video started scaling Inneractive s STORY native video ad unit Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec '14 '14 '14 '14 '14 '14 '14 '14 '14 '14 '14 '14 '15 '15 '15 '15 '15 '15 '15 '15 '15 '15 '15 '15 ecpm Publishers are also realizing the value of video. However, formats such as pre-roll require video content, which is costly and not relevant for many publishers. With the introduction and growth of native in-feed video as a new ad unit in the mobile market, publishers can now create new mobile video inventory that fits in naturally with their in-feed environments and is less intrusive to their users. Many publishers we talk to have either recently introduced native video, or are planning to do so in 2016.
6 #4 Publishers and advertisers are getting more comfortable selling and buying mobile video in a programmatic environment Mobile video, being relatively scarce compared to display units, has been viewed by many publishers as premium inventory, which they were reluctant to sell programmatically. With more and more publishers realizing the value of selling mobile video via RTB at scale, as well as the introduction of mobile private marketplaces and programmatic direct, there is more mobile video inventory being sold programmatically, and this is expected to continue growing in % of Ad Requests that are Video (at Inneractive) 40% 4% 17% H H H2 2015
7 #5 US still leads the pack with programmatic, yet other countries are catching up and following suit US is still the world s leading market when it comes to mobile programmatic ad spend and is considered to be the most advanced when it comes to adopting innovative ad units such as video and native. However, other regions in the world are quickly realizing the value of mobile advertising and the programmatic channel, in particular. At Inneractive, we believe that though US leads the pack, other markets will quickly be closing the gaps and will be experiencing significant growth in mobile programmatic over the next couple of years. This trend has already been prevalent in our year-over-year growth numbers for the various regions outside of the US. YoY Revenue Growth, by Region, non-us ( ) APAC LATAM 334% 387% EMEA 220%
8 CONTACT US ISRAEL 17 HAMEFALSIM ST. PETAH TIKVA, P: NEW YORK 79 MADISON AVE. NEW YORK, NY P: SAN FRANCISCO 535 MISSION ST. SAN FRANCISCO, CA P: LONDON 1 FORE ST, LONDON, EC2Y 5EJ P: BEIJING COMING SOON INFO@INNER-ACTIVE.COM WWW. INNER-ACTIVE.COM FOLLOW US
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