Industry Shifting To High-Quality Inventory And Explosive Growth In Mobile: Pubmatic

Industry Shifting To High-Quality Inventory And Explosive Growth In Mobile: Pubmatic
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PubMatic’s Q4 2015 QMI report demonstrates that major brand advertisers looking to target mobile consumers with timely, relevant advertising messages are increasingly utilising mobile private marketplaces (PMP)—which was the case during the 2015 holiday shopping season.

While consumers picked up their smartphones and tablets to research and purchase holiday gifts, weekly mobile PMP monetised impression volume increased 45 per cent from the start of the quarter through the week of Black Friday on November 27.

In the retail and technology sectors, the increase in weekly PMP volume over that period was even higher, at 106 per cent and 285 per cent, respectively. The market opportunity in PMPs is significant, as eMarketer estimates that ad spending on PMPs in the U.S. will reach $3.65 billion this year, up from just $80 million in 2013.

Globally, MAGNA GLOBAL projects that programmatic spending, which includes open auction, PMP and automated guaranteed, will rise to $37 billion by 2019.

Looking ahead, the volume spikes in mobile PMP during Black Friday and Cyber Monday suggest similar rises in mobile ad prices and spending around this year’s landmark events, including the 2016 presidential election and key professional sporting events.

Agencies looking to effectively execute on their advertiser clients’ strategic plans around major events will likely continue to utilise PMPs for the simplified buying environment and premium inventory.

The quarterly report, which analysed billions of daily impressions from Q4 2015 operational data, found five key trends that demonstrate mobile advertising growth:

  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 per cent year-over-year. 

To view the full Q4 2015 Quarterly Mobile Index (QMI) report, please visit http://info.pubmatic.com/QMI_Q415.html.

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