In-app ad spend outranks mobile web; data is key to growing eCPMs, finds new Smaato report

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According to the latest Q4 2015 Global Trends in Mobile Advertising Report from ad platform Smaato, mobile ad spend in the US rose 174% the year over. That’s in line with a rise in smartphone penetration, from 78% in Q1 2015 to 80% in Q4 2015.

US mobile ad spend on the rise

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Source: smaato.com

US consumers are now also spending an hour longer on their mobile devices compared to 2014. This comes at the expense of desktops.

However, US mobile ad spend growth pales in comparison to China’s. In Q4 2015, China’s mobile ad expenditure rose a staggering 1,246%. Venezuela, Canada and Hong Kong also noted strong results.

China leads in mobile ad spend growth

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Source: smaato.com

Smaato also found that apps dominated ad spending globally. In the Americas, in-app ad spending rose 77% from 64% in Q4 2014, whilst mobile web declined from 36% to 23% in 2015. Similarly, the APAC and EMEA region picked up when it came to in-app expenditure, whilst mobile web declined.

In-app ad spending outscores mobile web

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Source: smaato.com

On the Smaato platform, Android contributed 54.9% of global ad spend, compared to 43% on iOS. However, iOS has been traditionally more lucrative for publishers due to a higher eCPM. Smaato says that gap may be about to close as Android has been growing at a much stronger rate in 2015 than iOS.

Android catches up with iOS

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Source: smaato.com

Mobile data has been all the rage as of late and rightly so, as the report’s results show. For publishers, location as well as gender data made a significant impact on eCPM growth in 2015. eCPMs for ad impressions without data rose 42% between 2014 and 2015, compared to eCPMs rising 120% for impressions utilising geo-location and gender data.

Data makes a difference

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Source: smaato.com

The report also examined the Holiday shopping season more closely. Compared to 2014, the average daily ad spend on the Smaato platform rose 175% in 2015. Spending peaked earlier in 2015, with the top five mobile ad spend days occurring in November compared to December the year before.

As spending during the holidays

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Source: smaato.com

Ragnar Kruse, CEO and Co-founder, Smaato, says:

ragnar kruse

“Data truly is the new mobile currency. It’s a win-win-win. Making use of this data maximizes revenue for publishers, it allows advertisers to reach their target audience effectively, and the end user gets a better, more relevant ad experience. Now more than ever, it pays to know who your users are.”