My 24 Hours Income Team Impact: Smaato: Share of In-App Mobile Ad Spending Increased 13% in 2015

Wednesday, March 23, 2016

Smaato: Share of In-App Mobile Ad Spending Increased 13% in 2015

Advertising platform Smaato has released its Q4 2015 Global Trends in Mobile Advertising Report, which revealed mobile ad spending in the U.S. increased 174 percent year-over-year, from Q4 2014 to Q4 2015. In addition, while the U.S. is still the most valuable ad market in the world, Smaato found China experienced the largest growth in mobile ad spending in Q4 2015, with a 1,246 percent increase.

Elsewhere, when comparing global ad spending within apps with that of ad spending on the mobile Web, Smaato found ad spending within apps accounted for 78 percent of mobile ad spending in Q4 2015, up from 65 percent in Q4 2014. On the other hand, the mobile Web’s share of ad spending decreased from 35 percent in Q4 2014 to 22 percent in Q4 2015.

Overall, Smaato said Android accounts for 54.9 percent of global ad spending, while iOS accounts for over 43 percent.

The report showed publishers can earn more mobile ad revenue when they provide advertisers with reliable data about their users, such as their age, gender or location. Specifically, in Q4 2015, zip or postal code data could increase eCPMs (effective cost per thousand impressions) by 74 percent, while GPS coordinates could increase eCPMs by 162 percent.

Similarly, in Q4 2015, male gender data could increase eCPMs by 115 percent, while female gender data could increase eCPMs by 177 percent. Overall, eCPMs for ad impressions without data increased 42 percent year-over-year on Smaato’s platform, while eCPMs for ad impressions with data increased 120 percent.

In a statement, Ragnar Kruse, CEO and co-founder of Smaato, commented:

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.

Readers: Do you tap on the ads you see in mobile apps?