Demand drives up mobile ad prices, according to PubMatic report

Marketing automation software, PubMatic, released its Quarterly Mobile Index report for Q3 2015. The study shows that mobile ad performance has continued to grow this year, in part driven by mobile sites being optimised, mobile opportunities in emerging markets as well as new opportunities in mature markets and premium private marketplace performance. The rise in mobile consumption this year is predicted to increase revenue for publishers and advertisers.
PubMatic platform flow
pubmatic flow
Rajeev Goel, Co-founder and CEO, PubMatic, says:
rajeev goel

“Contrary to most industry averages, we saw higher mobile CPMs in Q3, compared to desktop CPMs. From our perspective, the ‘mobile gap’ is closed. Improved mobile infrastructure, advanced targeting capabilities and better overall customer experience offerings have enabled media organizations to take greater advantage of their mobile revenue opportunities. While other reports of this nature solely focus on mobile campaign performance metrics, the goal of the QMI is to unearth supply and demand dynamics in mobile advertising, to provide a macroeconomic view of the industry.”

The study identified five key trends in mobile advertising this year:

  1. Mobile CPMs were up 12% from 2014, compared to desktop at only 10%. Overall, mobile CPMs were 34% higher than those on desktop. Value of mobile impressions was up thanks to improved targeting strategies.
  2. Mobile ad adoption worldwide contributed to the spike. APAC and LATAM regions helped drive year-on-year growth in monetisation of mobile impressions during Q3. CPMs in North America were up 17% and EMEA increased 47%.
  3. Apple app adverts are increasing the fastest in price and volume. Mobile web inventory continues to grow. Monetised mobile impressions on iOS apps rose 133%, 42% on Android apps, 24% for mobile web and 44% on tablet web.
  4. Mobile optimization progresses rapidly with average CPMs for mobile optimised inventory up 48% in Q3, dropping 26% for non-optimised inventory.
  5. The report also found that private marketplace CPMs scored 5-6x higher than non-PMP CPMs.

Kirk McDonald, President, PubMatic, says:
kirk mcdonald

“In 2015, we witnessed the ‘mobile tipping point,’ as mobile users surpassed desktop users globally. It’s an undeniable opportunity for publishers to evolve and generate revenue in a new way. With the right tools in place, publishers can be positioned to answer consumers’ growing demand for a high quality mobile content experience.”

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