The mobile advertising ecosystem is constantly growing. With real-time campaign tracking and optimization, advertisers are able to measure their performance and ROI across operating systems, geographies, publishers, and campaigns. Tracking such performance across these channels represents an opportunity to gain insight into the latest market trends and consumer behavior shifts, but requires a great deal of data analysis and knowledge.
Recently, Opera Mediaworks released its quarterly “State of Mobile Advertising” report, chronicling the second quarter of 2013 in the mobile advertising world. Utilizing data gathered from 60 billion monthly impressions and 13 thousand sites and applications, Opera’s analysis provides a snapshot of the current state of mobile advertising, and the changing nature of the market.
The United States remains the dominant market for mobile advertising, garnering almost 49% of worldwide ad requests; the European region comes in second, handling about 21% of ad requests. With cyclical variation that is consistent with retail trends, the US market is also the leading market in transactions, with nearly three out of four worldwide dollars in transactions taking place within the US.
Although Android has taken over the iOS’s market share, iOS remains the more well-monetized and well-advertised platform, capturing almost 44% of worldwide ad impressions vs. Android’s 31%, and 49% of the market’s ad revenue compared to Android’s 28%.
In almost every publisher category, there is a discrepancy between the amount of impressions garnered and the proportion of ad spend dedicated to that category. For example, while music, video, and media category created the highest number of impressions, the resultant revenue is much less. This continues to be a prevalent challenge in the mobile space: advertising spend is not following user’s time spent on mobile.
Opera Mediaworks also compared ad types across two parameters: in-app vs. on the mobile web, and standard banners vs. rich media. They found that in-app ads generally outperform mobile web ads by a factor of 1.7, and that rich media ads dominate standard banner ads, by sometimes as much as 400%.
The most interesting finding of this study was the emergence of in-app rich media as the dominant ad product for delivering advertiser ROI. While the returns on advertising will vary by campaign across publishers, geographies, and devices, advertisers that utilize in-app rich media will maximize the chances of their campaign succeeding at delivering against core marketing objectives.
The impression vs. revenue gap in various publisher categories; including music, video and media, computers and electronics, social, and games; also represents an opportunities for publishers in these verticals to monetize through improvements to their advertising quality. At Aarki, we offer native advertising solutions for publishers to develop native app experiences. Publishers such as the New York Times have adopted similar native ad products that generate greater CTRs. The shift from traditional banner ads to highly engaging, rich media ads is happening, and we’re excited to be a part of the future of mobile advertising.