Mobile marketers are spending more on quality inventory through private marketplaces

Marketing automation software provider, PubMatic, just launched its Q4 2015 Quarterly Mobile Index (QMI), which finds that marketers are spending more on high quality inventory through transparent mobile private marketplaces (PMPs). As a result of this shift towards higher quality, premium publishers are attracting more mobile ad spend, closing the mobile gap between spend and consumption.
PubMatic Quarterly Mobile Index
The 2015 holiday shopping season is one example of major brand advertisers increasing their efforts to target mobile consumers using mobile PMPs. The PubMatic report shows that consumers researched and purchased holiday gifts using their mobile devices, whilst mobile PMP monetised impressions rose 45% from the start of the quarter to Black Friday (27. November). Retail and tech sectors experienced an even higher rise in PMP volume, at 106% and 285% respectively.
eMarketer estimates that PMP spending in the US will reach $3.65bn this year, up from $80m in 2013.
Volume spikes in mobile PMP during the major shopping holidays are mirrored at times when landmark events are taking place, such as the 2016 presidential election and sporting events. PubMatic concludes that marketers will be likely to continue to purchase inventory on PMPs for special events.
Rajeev Goel, Co-Founder and CEO, PubMatic, explains:
rajeev goel

“Our data shows that the shifting industry focus to high-quality ad inventory is paying off for premium publishers. As low quality inventory is cleared out of the ecosystem, publishers are receiving higher CPMs. Publishers are also focused on creating higher-quality media experiences for consumers to combat ad blocking and encourage more media consumption, which also contributes to higher CPMs and attracts more ad spending from brand advertisers. We’re seeing that private marketplaces also enable timely and scalable targeting of specific audiences. 2016 brings several major events, such as the presidential election and the Summer Olympics, which present immense opportunities for publishers and advertisers trying to reach mobile audiences with relevant marketing messages.”

Among the key trends identified in the report are:

  1. Advertiser demand shifts towards higher-quality mobile PMP inventory to target mobile-obsessed holiday shoppers.Advertisers increasingly sought higher-quality mobile inventory to target holiday shoppers on mobile devices, as evidenced by mobile private marketplace volume spikes.
  2. By vertical, retail and technology spending drove PMP growth. Within mobile private marketplaces, the retail and technology verticals showed major volume gains ahead of Black Friday shopping, demonstrating that e-commerce and consumer technology sales likely drove ad spending.
  3. Opportunity for mobile growth remains strong on a global scale. The Americas and Europe, Middle East and Africa (EMEA) represented the largest opportunities in terms of volume, but the Asia Pacific (APAC) region was the fastest-growing mobile opportunity.
  4. The Android app ad awakens. Android app ads increased the most in terms of both price and volume, while CPMS increased across all mobile platforms, including IOS app, mobile web and tablet web.
  5. Mobile gap remains closed. Mobile CPMs are still higher than desktop CPMs, and both mobile and desktop CPMs grew a healthy 36% year-over-year.

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