AppFlood Q2 Report Shows Importance of Asian Markets for Android Advertising

AppFlood has released its second data report of the year that interprets the current state of the Android advertising market based on the revenue and traffic data acquired from their network. The full Q2 report can be found in the slideshare below, while in the rest of the article we present some of the key findings from the data.
AppFlood Mobile Android Advertising Insights Report Q2 2014

Global Mobile Traffic is On the Rise

The data shows a continued Android growth in Asia and the Middle East, where these regions accounted for 53% of global traffic. These areas (when combined) remain as the leading source of mobile traffic, as was the case in Q1 of this year. They also contributed to 47% of Android app installs across the AppFlood Network in the Q2 period. Global mobile traffic as a whole grew 56% over the quarter – with more and more people using mobile then, and in particular apps, it’s increasingly becoming a place for advertising that can no longer be ignored. Android is becoming huge in China because of reasons such as the attractive open nature of the platform for developers to run their advertising on, the falling cost of smartphones, and the willingness of China’s mobile users to embrace advertising in their apps.
Mobile Traffic by Region Q2 2014


China is Leading in Android Advertising

Another area the data highlighted was the sheer dominance of China in the Android advertising world, where it accounted for 60% of the total global mobile ad spend. Once again this is China proving that it’s one of the top advertisers in the mobile industry. Productivity apps are the most popular category for Chinese advertisers too, which comes as no surprise because of the ease of localising these apps for Western markets. The country’s mobile advertising market is valued at ¥12.56 billion ($2 billion), growing at a rate of 27% – that’s some serious business.
Mobile Ad Spend by Country Q2 2014
Mobile Ad Spend
The general manager of AppFlood for EMEA, Chris Hanage, spoke about the continued growth of China’s mobile advertising, as well as the other markets appearing on the scene:

“China’s continued growth in global advertising spend confirms it is a dominant player in the global mobile ecosystem.The growth in other emerging markets is also very encouraging and suggests mobile is quickly becoming the go-to advertising platform to reach these markets. We anticipate this growth in China and emerging markets will continue and create significant opportunities for advertisers and publishers across the globe.”

Mobile Ad budget Grows and Rich Media Revenue Soars

Mobile ad budgets are also expanding to capitalise on the increase in global mobile traffic, with the average global mobile ad budget itself growing 19.1%, month on month. In addition to this, 53% of the global mobile ad budget is now spent on acquiring users from Asia, Middle East, Africa and Oceania – advertisers (in China mainly) are becoming more aware of the importance of these regions then, and are spending more here than they are for Western markets. Rich media ad revenue also increased by a decisive 95%, marking the shift away from banner and interstitial advertising. Interstitials are still the number one choice for publishers at the moment, but this looks like it will change very soon. The increased mobile ad budget could well be to accommodate this demand for the more expensive rich media, which in turn is used to target the growing mobile traffic.
Where Advertisers Spend their Mobile Ad Budget by Region Q2 2014
Ad Budget
Final thoughts

So what does this second batch of data from AppFlood project for the mobile app economy? Well, we have China positioned as the key global market for mobile advertising, as it invests more into emerging regions than ever before. Rising install-rates in these emerging areas also suggest an increased consumption of mobile apps as a whole, once again, showing the increasing power of the ever-growing app industry. Another key aspect the data highlights is that productivity apps are what the ad budgets are being spent on – not mobile games.
Even though this data only applies to AppFlood’s network and for the Android platform alone, it does potentially show the future direction of the overall market, especially given the increasing share of Android in terms of mobile ad revenue. Overall then, the data is undoubtedly useful for advertisers and publishers who want to optimise their mobile advertising and app marketing campaigns and strategies going forward.
For more information you can read the full report here, or check out the AppFlood profile on our directory here.

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