AppFlood, one of the fastest growing advertising networks that is bridging the Western and Asian marketplaces, has released a data report that interprets the current state of the Android advertising market based on revenue and traffic data from their network. The full report can be found in the slideshare below, while in the rest of the article we present some of the key findings from the data.
AppFlood Mobile Android Advertising Insights Report Q1 2014
China Becoming Key Mobile Ad Market
The new report suggests that China is becoming a global power in the mobile advertising industry, with 68% of Chinese mobile ad spend being used on inventory from outside of Asia itself, especially in Europe, the Middle East and Latin America. Global mobile ad spend as a whole increased 62% between Q3 2013 and Q1 2014.
In terms of European inventory alone, Chinese mobile advertisers are favouring Russia which makes up 19% of overall spend in Europe, while Germany, Italy and Ukraine each received 8% of spend, leaving Spain and the UK accounting for 7% each. In fact, Europe accounted for 26% of the global advertising spend as a whole.
China’s Mobile Ad Spend in Europe Q1 2014 Breakdown
So China is expanding into Western markets through increasing mobile ad budgets, meaning they are more global than before with an even distribution of their spend across the regions. In total China’s mobile ad spend grew 110% quarter-on-quarter between Q2 2013 and Q1 2014. On the other hand, American mobile ad spend is typically re-invested back into the USA with 62% of the total spent in the domestic market.
The general manager of AppFlood for EMEA, Chris Hanage, spoke about the growth of Chinese mobile advertising:
“For a long time the mobile advertising ecosystem has been primarily driven by the West and in particular the United States. It appears this is set to change with the rapid growth of mobile advertising driven out of China. Of particular interest is the Chinese thirst for global mobile advertising inventory, which demonstrates the importance of sophisticated global campaigns to Chinese advertisers. It’s a significant paradigm shift.”
Global Android Traffic is Growing
Another key discovery from the data is that global Android ad traffic grew 45% between the period of Q3 2013 and Q1 2014. Traffic is spread broadly across a number of regions with both the Middle East and Latin America accounting for a significant proportion of the overall total. However, in terms of installs, the US (23%), Western Europe (20%) and Asia (21%) remain the key markets.
Installs by Region Q1 2014 Breakdown
Interstitials Generate the Most Revenue
Interstitials are the mobile ad format that is generating the most income on Android, with a commanding 70% of total mobile ad revenue in the Q1 2014 period. Although month-on-month the interstitial ad format declined by 14% due to growth in rich media which climbed 34% over the same period. The banner ad format accounts for only 1% of ad revenue, which is not a surprise when you consider that a giant like Yahoo has completely scrapped the format altogether.
Mobile Ad Format Revenue Q1 2014 Breakdown
So what does all of this data from AppFlood signal for the mobile app economy then? Perhaps the most significant point is that China is beginning to become the key global market for mobile advertising as its publishers and developers increasingly expand into international markets. Whilst this data only applies to one network (AppFlood) and for one platform (Android) it does potentially show the future direction of the overall market, given the increasing share of Android in terms of mobile ad revenue. Overall this data from Appflood will prove useful for advertisers seeking to optimise their mobile advertising and app marketing campaigns and for others in the industry looking for useful benchmarks.