Wednesday, 4 February 2015

Apple retains mobile ad revenue lead, despite Android’s growing traffic

Android captured the majority (64%) of mobile ad traffic in Q4, but Apple continues to lead the way for revenue generation, according to new research.
The State of Mobile Advertising report, conducted by Opera Mediaworks, says that Apple’s favourable position in Western markets such as the US, Germany and the UK has helped it to retain the lead.
The report noted that, in these markets, “high-value rich-media and video-advertising campaigns” are more common.
Since iOS dominates these markets, monetisation levels are highest, with over 51% of revenue. The iPad continues to show impressive monetisation potential, accounting for nearly 13% of revenue, with a mere 5% of impressions.
Mobile app developers use ads to acquire users
The report also found that the high volume of mobile app usage versus mobile browsing in Western markets helps to drive a healthy user-acquisition market. To acquire more users, publishers and app developers use direct response, or performance, mobile ads to drive app downloads.
The total spend for these types of campaigns has experienced an impressive growth over the past two years, but the cost-per-installation rate (CPI) has remained stable, and even slightly declined, in 2014.
Games category leaps ahead in both traffic and revenue in 2014
As seen in previous quarters - and even previous years - the social networking category received the most traffic (28.8%), while the music, video and media category generated the most revenue (21.6%).
The games category, though, has proven to be the most successful. In 2013, it represented just 5% of impressions, but in Q4 2014 it captured a 14% traffic share. Revenue numbers were even more impressive, as the category grew year-over-year from 3% of revenue to 21.4% of revenue in Q4 2014.
Emerging global markets contend with North America and Europe
The US still dominates the global mobile ad economy, with nearly a 44% share of impressions. But, other international markets are beginning to catch up, with Asia Pacific coming in second, at 26.1%. This is nearly twice the share of Europe, at 12.5%.
By the end of 2014, the non-US Americas also emerged as a significant mobile advertising market, with a 9.8% share of impressions, led by Mexico, Brazil, Canada and Argentina. Africa, which had a tiny (1%) share at the end of 2013, grew to 4.8%, and South Africa and Nigeria now hold places in the top 10 countries, by impressions.


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