Report: Ad Spending on the Mobile Web Doubled Last Year

By Brandy Shaul Comment

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Smaato, a global advertising platform for mobile publishers and app developers, has released its Global Trends in Mobile Programmatic Report, which analyzed data from billions of mobile ad impressions served on its exchange in the first half of 2015. The report found while apps still account for the most overall ad spending on mobile devices, spending on the mobile Web increased by 100 percent over last year.

To be specific, ad spending on the mobile Web now accounts for 38 percent of the market, while ad spending in apps dropped from 72 percent last year, to 62 percent through the first half of 2015. Smaato hypothesizes some of this mobile Web growth could be due to the use of social networking apps like Facebook and Twitter. As users tap on links within these platforms, they’re often sent to mobile websites, rather than staying in an app.

In terms of ad targeting, the report showed marketers are heavily targeting families and parents, with ad spending aimed at these users increasing by over 300 percent year-over-year.

Targeting in general was shown to pay off, with the report finding advertisers who utilize age and gender data receive the highest eCPMs (estimated cost per thousand impressions), which were 385 percent higher than when no data was utilized. In addition, developers and publishers who are making use of rich media advertising were shown to receive 83 percent higher eCPMs than with image ads.

In general, there’s a trend for larger ads, with spending on medium ads (300×250) increasing by 254 percent year over year. This is compared to just 30 percent growth for the most popular ad size of 320×50.

Overall, Android apps now account for 35 percent of all supply on the Smaato Exchange, up from 32 percent during the first half of 2014. Year-over-year, iOS apps dropped from 24 percent to 20 percent. Finally, the mobile Web accounts for 41 percent of all supply on the exchange.

In a statement, Ragnar Kruse, CEO of Smaato, commented:

The shift to mobile began with the mobile Web, and then apps took over. Although we can’t say for sure whether we’re looking at a huge comeback of the medium, the fact remains that publishers and advertisers can’t afford to ignore the mobile Web. Mobile ad strategies—whether it be the size of ads or the use of rich media—must be created with both app and mobile web usage in mind.

Smaato’s full report is available to download here.