Mobile header bidding impression volume increases 12x in 2017

Header bidding and private marketplaces are finding increased adoption among mobile publishers, according to the latest PubMatic Q1 2017 Quarterly Mobile Index (QMI) reportThe analysis shows that mobile monetised impressions from header bidding increased 12x compared to the previous year. Indeed, 25% of total monetised header bidding impressions came from mobile devices, up 7% from 2016.
Mobile header bidding eCPMs jumped 55% year-on-year. Impressions from header bidding also represented three quarters of PubMatic’s total impression pool at the end of 2016. That trend is likely to continue as more mobile web publishers adopt the technology. Bolstering mobile app monetisation via header bidding will make a further impact.
In addition, the report highlights shifting advertiser demand toward higher quality inventory in line with consumer mobile browsing behaviours. This has boosted private mobile marketplaces (PMPs), with Q4 2016 being a milestone in terms of monetised inventory volume increasing 200% from the previous year. In EMEA and the Americas app inventory grew, whilst APAC saw just 5% of total impressions within the mobile private marketplace category.
The value of mobile PMPs is evident in their higher eCPMs, up 360% compared to the mobile average in Q4 2016, up 192% from 2016. More dollars are being directed towards programmatic channels as quality of demand increases.

Rajeev Goel, Co-founder and CEO at PubMatic, explains that these are interesting times where mobile users increasingly engage with mobile content and advertisers are bolstering their ad budgets to programmatic options.

“The new wave of brand buyers is demanding quality inventory and brand safety, as evidenced by the rise in programmatic direct. Buyers and sellers of digital media need to be sure to work with partners, like PubMatic, who are committed to transparency and maintain the highest quality standards in order to take full advantage of the inherent opportunities in mobile.”

The report also found that mobile web is still a top source of monetisation for premium mobile publishers. Indeed, it represented two-third of mobile impressions last year. However, overall mobile web impressions decreased 8% the year over, whilst mobile app paid impression volume grew 21%. More evidence for mobile app inventory’s claim to fame comes from increasing prices at a 59% premium in Q4 2016. With mobile web presenting hurdles such as ad blockers, more advertisers are likely to shift to apps.

Other key points from the report include video eCPMs on mobile devices growing 7% quarter-on-quarter, despite the feared post-holiday dip. Additionally, Android’s share of monetised mobile impression volumed jumped 71% worldwide, with EMEA and APAC regions driving the gains.
These findings indicate that mobile offers substantial opportunities for growth across various regions and market segments. With mobile user penetration set to reach 62.6% globally in 2028, and 70% of Internet use now happening on mobile devices, mobile advertising continues to be a hot topic.

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