Publishers prefer private programmatic marketplaces for mobile ad inventory

Anne Freier | February 16, 2017

Mobile Advertising


Source Inneractive

Mobile programmatic has evolved to include a larger variety of inventory. It now attracts more brands and advertisers turning mobile into a unique advertising format with considerable benefits to marketers globally.
That’s according to the latest findings from Inneractive‘s Mobile Ad Trends 2016 report. The mobile ad and publisher platform examined data from over 800m unique monthly users and 200bn monthly ad requests. It noted five key trends.
1. The US continues to lead the programmatic video movement. More buyers opted for programmatic video in the country than elsewhere with ad requests increasing 65% in 2016. However, the rest of the world is catching up with a 155% increase in ad requests from publishers outside of the US during the same period. This figure is likely to continue to rise with less mature programmatic markets adopting the lucrative ad format.
2. Private programmatic is favored over open exchanges. Indeed, private auctions and deals were found to be preferred by publishers who wish to safeguard their premium inventory. Across Inneractive’s platform private programmatic deals grew 5-fold, whilst revenue from private deals increased 13-fold. It is expected that private marketplaces will continue to proliferate and drive the growth of programmatic.
3. The Chinese mobile market has been expanding rapidly. Indeed, ad spend in the country is expected to reach over $37bn this year. With the improvement of mobile programmatic conditions and marketplaces in the country, more advertisers from within and outside of the country are expected to take an interest. CPMs in the country are now almost as high as in Japan. However, China has a lower GDP per capita than Japan. That’s usually taken as a good measure for a population’s purchasing power. Bid requests for Chinese traffic across Inneractive jumped 33% whilst eCPMs almost doubled.
4. Location data across mobile advertising campaigns has grown in popularity. Mobile devices are unique in that they enable marketers to learn about a user’s location. In 2016, Inneractive noted a 76% increase in eCPMs across its platform for location data requests. The platform also confirmed a rise of 146% in ad requests that contained location data as a direct result of advertisers making higher bids for location requests.
5. Video is undoubtedly one of the key formats in mobile advertising this year. Inneractive noted a 133% increase in video ad requests in 2016 already. These formats generally result in more engagement with audiences and higher value returns. However, interstitial formats of 300×250 as well as banner ads sized 320×50 continue to be popular. Banner ads increased 81% across the platform. This suggests that advertisers are slow to consider and adopt new ad formats.