Report: In-App Ad Prices Soar As Ad Requests Grow

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Smaato, the global in-app advertising platform, today announced results from its Global In-App Advertising Trends report.

Examining the first half of 2019, the report reveals valuable new insights into the programmatic growth of in-app advertising.

Smaato found significant growth across key advertising metrics, including ad request volume and eCPMs.

  • Smaato experienced a 27 per cent increase in eCPMs globally when comparing H1 2019 to H1 2018
  • Smaato experienced a 16 per cent growth in mobile ad requests globally when comparing H1 2019 to H1 2018

The company reported phenomenal eCPM growth in several countries. These soaring ad prices indicate insatiable demand as the competition to reach today’s engaged mobile app increases.

Mobile eCPM Growth on the Smaato Platform

APAC – 37 per cent Growth EMEA – 17 per cent Growth Americas – 29 per cent Growth
South Korea – 179 per cent Spain – 88 per cent USA – 33 per cent
Indonesia – 54 per cent France – 57 per cent Mexico – 14 per cent
India – 50 per cent Germany – 23 per cent Colombia – 11 per cent
Singapore – 47 per cent UK – 13 per cent Canada – 4 per cent

South Korea saw the most significant eCPM growth at 179 per cent, more than double the growth of Spain, which had the second-highest growth year-over-year. South Korea has the highest smartphone penetration rate globally at 95 per cent according to Pew Research Centre. This makes South Korea the world’s most mature smartphone market, and advertisers are competing for these consumer’s eyeballs.

A key factor driving global eCPM growth is the greater availability of user data. Mobile apps can provide a wealth of user data – data shared by users in exchange for in-app perks and conveniences such as location-based services and personalized discounts.

The more data included in a single ad request, the more advertisers are willing to pay for the impression. For instance, the eCPM of an ad impression with device ID and user age was 27 per cent higher than one without any additional data in H1 2019 on the Smaato platform. Add user gender and GPS location to that ad impression, and the eCPM increased an extra 117 per cent.

Mobile Ad Request Growth

APAC also saw significant mobile ad request growth. The top four countries in the region in terms of mobile ad request growth were:

  1. India – 201 per cent
  2. Japan – 40 per cent
  3. Australia – 38 per cent
  4. Singapore – 27 per cent

As advertisers direct more money into mobile advertising and consumers continue to adopt smartphones around the world, demand and supply both increased year-over-year, indicating a healthy mobile ad market.

Commenting on the report, Smaato vice president, supply, APAC Delynn Ho said, “Despite the impressive growth in ad requests across the APAC markets, eCPMs are still rising. This could point to marketers actively looking to reach consumers where they are nowadays — on their mobile apps.”

She added, “As the region’s mobile publishers better understand their opportunities for monetization, we are seeing advertisers capitalize on richer, more impactful placements such as rewarded video and native advertising.”

Smaato’s H1 2019 Global In-App Advertising Trends report delivers a number of additional insights:

  • Private marketplace (PMP) spending is growing. PMP ad spending increased 250 per cent in the first half of the year compared to the same period last year. Advertisers are spending more of their budgets on PMPs, especially within the technology, healthcare, and food and beverage industries. The apps with the highest share of ad revenue coming from PMPs were in real estate, social and dating, and sports.
  • Spending on native ads more than tripled from the beginning of the year to the end of June this year. Native ads also have the highest performance rates of any in-app display format.

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