In-app advertising dominates spending on Smaato platform

In-app advertising continues to grow with expenditure accounting for 96% of global ad spend on the Smaato platform. The findings are part of the Q3 2017 Global Trends in Mobile Advertising Report by mobile publisher and app developer advertising platform Smaato. Based on an analysis of over 1.5 trillion advertising impressions, the report finds that in-app advertising dominates compared to mobile web worldwide.

In-app advertising spend is now garnering at least 85% of ad spend across each of the top 20 mobile ad markets globally, driven by smartphone owners increasingly spending 80% of their mobile time in apps.

Millennials were some of the core targets of mobile ad spend compared to other generations. Advertisers paid the highest eCPMs for Millennial smartphone users, which captured a 79% share worldwide.

Additionally, Smaato found that mobile video ad spend continued to outgrow all other mobile advertising formats. Indeed, video ad spending nearly doubled in a single quarter and ad spaces that played mobile video ads earned 4.1 times higher eCPMs than non-video formats.

Meanwhile, mobile ad requests (a measure of mobile usage) on Smaato shot up to record numbers with key ad markets such as the US (+345%), Japan (+180%) and the UK (+174%) placing huge ad request gains. eCPMs increased worldwide with the EMEA regions showing the highest growth.

Ragnar Kruse, CEO and Co-Founder of Smaato, explains:

“Although in-app advertising already became more than three quarters of the worldwide ad spending on our platform last year, there was clearly still more upside, as in-app established its global mobile ad spending dominance in 2017. Given consumers’ pronounced shift to in-app over the past year, it is not surprising that advertisers followed, especially considering the significant targeting precision and tracking accountability advantages that in-app advertising give advertisers versus any alternative — whether mobile web, desktop or traditional television.”

Although Android commands a greater share of the mobile ad market (two-thirds), iOS is expanding its gap with eCPMs on iOS devices 30% higher than on Android.

Meanwhile, ad request from China grew 64% over the past year, driven by its 724 million smartphone users. eCPMs for ad spaces on mobile devices shot up 74%. The majority of these mobile consumers are male with the majority (85%) of mobile ad requests coming from men’s devices and young (50% of ad request come from users aged 13 to 24 years).