Mobile ad spend jumps 70% despite pandemic woes

Mobile advertising spending rose 71% during Q2 2020 compared to 2019 despite the economic impact of the coronavirus pandemic.

That’s according to the latest quarter report by mobile measurement firm PubMatic.

While year-on-year increases were highest in the Americas (77%), the rise in quarter-on-quarter ad spending was highest in APAC (30%) compared to the Americas (7%) or EMEA (3%) regions largely due to rising ad costs in the region.

Evidently, marketers still consider mobile to be an effective advertising channel with 39% of them planning to raise their marketing budgets in 2020 and 49% saying they would allocate over a quarter of budgets to mobile up from 40% in 2019.

The study also found that mobile performance video ads did well during the pandemic lockdowns mostly due to a boost in gaming.

APAC leads for video ad spend at 74% globally. In-app viewing drove mobile’s dominance as a platform with 40% of time spent on an app coming from video in 2020.

The number of apps published using app-ads.txt is nearing half (44%) driven by Android transactions.

There’s no doubt that mobile ad spend increases were boosted by a greater number of mobile users spending time with more apps. The consequence is that top apps are now sharing user time with smaller app publishers.

Advertisers said that open web programmatic ads were more effective to this end (77%) than social channels like Facebook.

Mobile head bidding ad spending rose 20% to a share go 59% in Q2 2020.

In-app was driving this increase, rising 26% compared to 2019 and outpaced mobile web that grew 18%.

In-app rose 5x over pre-impact levels while mobile web and desktop increased 52% and 2%, respectively.

Meanwhile, analysts expect PMPs to surpass open exchange spending in 2020, accounting for 51% of total open RTB spending.

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