Mobile ad spend grows 29% in Q1 2019

Mobile advertising spend grew 29% year-on-year in Q1 2019, highlighting a faster growth rate than between 2017 and 2018 (20%) for the first time, according to the lasted Quarterly Index by PubMatic. Mobile eCPMs declined across the digital ad company’s platform as a result.

Almost half (48%) of all video impressions served via PubMatic were mobile compared to 63% on desktop. The company expects that mobile video will be a preferred format until the end of 2019.

“Mobile advertising continues to see monumental increases in spending, while still making strides towards greater transparency and returns, which is hugely important for publishers and advertisers. That said, the industry is only now learning how to properly take advantage of in-app header bidding, which has led to more obstacles,” explained Paulina Klimenko, SVP, Corporate Development and GM, Mobile at PubMatic. “In order to find success, app publishers should consider the differences in header bidding between desktop and in-app and how the implementation efforts will impact their dev teams.”

Furthermore, the company’s mobile header bidding volume doubled over the last two years with mobile accounting for a third of all header bidding impressions in Q1 2019.

More than one third of publishers are already using in-app header bidding in 2018 and a third plan to adopt it this year.

Over the last year, mobile web header bidding jumped 80% in volume as more publishers are driving the format.

The report also noted that spending for Android apps was down 17% year-on-year, whilst iOS had increased 68%, possibly reflecting fraud schemes that have previously plagued Google.

Whilst open marketplace spend for Android was down (-16%), it had increased 58% on private marketplaces. Marketers are overall less concerned with iOS on openRTBs.

Although considered safe, video invalid traffic rates were found to be higher on iOS than Android (2-3x than display ads).

When it comes to regional opportunities, the APAC programmatic ad market is still behind the rest of the world at 7% of its current digital ad dollars compared to 10% worldwide.

However, mobile in-app impressions are now 2.5x of the global average.

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