Android users more valuable to marketers – app inventory CPMs increase 147%

Marketing automation software, PubMatic, has just published its Q1 2016 Quarterly Mobile Index (QMI) report which finds that advertisers are now focussing on Android users, with app inventory prices and CPMs for the operating system having increased 147% the year over. This signals a greater value of Android users to marketers. Meanwhile, Apple iOS app inventory prices remain high. CPMs increased 62%.
Android app CPMs up 147%
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Android dominates the global market with 83% versus 14% on iOS. In the US, iOS has a more significant weight towards market share with 39% compared to 58% on Android.
Android and iOS market share
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The report also found that mobile app CPMs rose 67% and web CPMs 57% the year over. Desktop trailed behind at just 48%. This is particularly important for premium publishers whose mobile traffic stems from mobile web.
Mobile app CPMs highest
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80% of monetised mobile inventory came from the mobile web during the first quarter, signaling that publishers are monetising the majority of their ad inventory.
80% of mobile web inventory is monetised
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Rajeev Goel, Co-Founder and CEO, PubMatic, says:
rajeev goel

“The wealth of mobile advertising data from our platform continually helps us understand how advertisers are evolving their strategies to target the unpredictable, increasingly-mobile global consumer. We’re seeing major surges in advertiser demand across both mobile app and mobile web platforms, and we expect these trends to continue as premium publishers create more impactful mobile strategies for brand advertisers. This, in turn, will result in higher-quality mobile experiences for consumers.”

The research further highlights that mobile inventory in the Americas and EMEA was up 30% and 64% respectively, signaling an increase in inventory that is driving up prices. Meanwhile, the APAC region experienced a decline of 25%.
Average mobile CPMs
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However, APAC monetised mobile impression volume was up a staggering 514% which points to the region’s fast growth, compared to 57% for the Americas.
Monetised mobile impressions
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PubMatic also examined the effect of major sports events on ad demand. Notably, advertisers moved to private marketplaces (PMPs) during events such as the Super Bowl, Six Nations Championship and NCAA College Basketball Tournament. PMP volume for the sports category on mobile was up a staggering 1054% in volume year-on-year.
Major sports events are driving PMP performance
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Programmatic platforms were found to drive higher CPMs for publishers, closing the gap between ad spending and the share of time spent on mobile, expected to be 3% of ad spending in the US this year.
PubMatic suggests that the average mobile CPMs in Q1 2016 were 32% higher than average desktop CPMs and grew faster the year-over, up 51% for mobile CPMs, compared to 48% for desktops.
Mobile relative CPMs increased 51%
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