mopub mobile advertising marketplace report (2012 q3)

Mobile Advertising Marketplace Report

2012 Q3

About the report •  The Mobile Advertising: Marketplace Report provides market data from real-time bidded

auctions for mobile ad impressions, aggregated from smartphone applications, advertisers and demand side platforms on MoPub Marketplace, the mobile ad exchange product of MoPub, the world’s leading advertising server for smartphone apps.

•  MoPub Marketplace is a real-time bidding exchange for mobile ads, where advertisers and their representatives can bid on ad inventory from thousands of smartphone application publishers in an efficient, real-time market.

•  The data reflected here is solely representative of exchange-traded media on MoPub Marketplace and does not include any ad network or ad network mediation data.

•  MoPub Marketplace suppliers are smartphone application publishers from the U.S., Europe, Asia, and Latin America. The data is representative of 20 billion monthly ad impressions across two dozen verticals.

•  MoPub is a neutral, independent, and private entity. MoPub does not sell advertising nor do we buy inventory. For more information about MoPub, see report appendix or email [email protected].

•  Questions, comments, or data inquiries about this report can be sent to [email protected].

Summary highlights

"   Real-time bidding picks up speed in Q3, with winning auctions increasing by 162% as compared to Q2

"   While iOS impressions continue to garner a price premium over Android, Android eCPMs rose 26% in Q3 to narrow the difference to 29 cents

"   While eCPMs generally held strong or increased in Q3, impressions on the iPad, Android tablets, and phones demonstrated the most significant gains in eCPMs throughout the quarter

"   Among Apple and Android devices, the iPhone remains the most in demand with an average Competitive Factor of 3.5

"   Health and fitness, news, and entertainment impressions were the most popular verticals among advertisers and demand sources

"   Rich media pays off for publishers with demand sources paying 1.5x higher eCPMs for MRAID-compliant inventory

"   Publishers passing critical keyword information receive at least 1.4x higher eCPMs than impressions without keyword data

"   Medium rectangles and traditional banners saw the greatest gains in eCPMs, with increases of 42% and 20% respectively; eCPMs for iPad banners also rose by 11%

MoPub Proprietary Data. For more information contact [email protected]

100%

120%

140%

160%

180%

200%

220%

240%

260%

280%

7/1/12 8/1/12 9/1/12

Tren

d in W

in Rate

Real-time bidding picks up speed in Q3, with winning auctions increasing by 162%

"   Winning auctions grew 162% since Q2, with more impressions being won through real-time bidding than ever before even with a growing supply of mobile advertising inventory

Notes: Auction Win Rate: Represents the share of real-time auctions with winning bids. MoPub Proprietary Data. For more information contact [email protected]

July Aug Sept

+162%

$0.70 $0.68 $0.72

$0.34

$0.42 $0.43

$0.00

$0.10

$0.20

$0.30

$0.40

$0.50

$0.60

$0.70

$0.80

July Aug Sept

Aver

age

eCPM

iOS Android

While eCPMs for iOS still dominate, Android eCPMs rise 26%

"   While advertisers and Demand Side Platforms still placed a premium on iOS impressions, Android eCPMs rose dramatically in Q3 to close the gap to under 30 cents

Notes: Effective CPM: Effective CPM is equal to total revenue ÷ total ad impressions x 1000, and represents the price advertisers are willing to pay to reach the developer’s audience. MoPub Proprietary Data. For more information contact [email protected]

+26%

16% 13% 18%

-‐71%

-‐40% -‐36%

-‐80%

-‐70%

-‐60%

-‐50%

-‐40%

-‐30%

-‐20%

-‐10%

0%

10%

20%

30%

July Aug Sept

Dev

iatio

n fr

om a

vera

ge e

CPM

iOS Android

Operating systems converge in eCPM despite a iOS6 September bump for Apple

Notes: Effective CPM: Effective CPM is equal to total revenue ÷ total ad impressions x 1000, and represents the price advertisers are willing to pay to reach the developer’s audience.

"   While prices for Android and iOS impressions converged in Q3, the launch of iPhone 5 in late September provided Apple with eCPMs still 18% above the average eCPM

Avg eCPM

MoPub Proprietary Data. For more information contact [email protected]

$0.34 $0.37

$0.67 $0.67

$0.88

$0.42 $0.45

$0.65 $0.61

$0.92

$0.43 $0.48

$0.68 $0.62

$0.94

$-‐

$0.10

$0.20

$0.30

$0.40

$0.50

$0.60

$0.70

$0.80

$0.90

$1.00

Android phone Android tablet iPhone iPod touch iPad

eCPM

s

July Aug Sept

Tablets and Android phones lead the way in devices

"   While eCPMs generally held strong or increased in Q3, impressions on the iPad and both Android tablets and phones demonstrated the most significant gains in eCPMs throughout the quarter


+30% +26%

+7%

The iPhone maintains its lead as the most popular device among advertisers in Q3

"   While Android devices maintained a healthy average of three bids per completed auction, the iPhone remains the most in demand by Demand Side Platforms and advertisers among devices

Notes: Competitive Factor: Competitive Factor represents the average number of bids per auction MoPub Proprietary Data. For more information contact [email protected]

3.0 3.0 2.8

3.5

0.0

0.5

1.0

1.5

2.0

2.5

3.0

3.5

4.0

Android phone Android tablet iPad iPhone

Com

petit

ive

Fact

or

During summer months, health and fitness applications were the most popular vertical among advertisers

"   Demand for health and fitness and news app impressions were the most sought after by demand sources, followed by gaming and entertainment

Notes: Competitive Factor: Represents the average number of bids per auction MoPub Proprietary Data. For more information contact [email protected]

2.2

2.5

2.6

2.7

3.1

3.3

3.3

3.5

3.5

4.2

4.8

0.0 1.0 2.0 3.0 4.0 5.0 6.0

producHvity

weather

uHliHes

business

lifestyle

music

social networking

games

entertainment

news

healthcare and fitness

Competitive Factor

Rich media standards pay off for publishers and advertisers

"   Demand sources offered distinctly higher eCPMs at a 1.5x multiple for MRAID-compliant inventory as compared to non-MRAID impressions


$0.44 $0.49 $0.50

$0.60

$0.71 $0.74

$-‐

$0.10

$0.20

$0.30

$0.40

$0.50

$0.60

$0.70

$0.80

Jul Aug Sept

eCPM

Non-‐MRAID ads MRAID ads

1.4x

1.5x 1.5x

Publishers passing critical keyword information received distinctly higher eCPMs

"   Demand sources offered distinctly higher eCPMs, ending Q3 with a 40% premium for impressions keyword data such as demographic information


$0.36

$0.46

$0.57

$0.69 $0.71

$0.79

$-‐

$0.10

$0.20

$0.30

$0.40

$0.50

$0.60

$0.70

$0.80

$0.90

July Aug Sept

eCPM

Without keyword data With keyword data

1.9x 1.5x

1.4x

$0.72

$0.50

$1.14

$0.82

$1.99

$1.07

$0.54

$0.83 $0.86

$1.92

$1.09

$0.60 $0.72

$0.90

$1.76

$-

$0.50

$1.00

$1.50

$2.00

$2.50

Medium Rectangle Banner (320 x 50) Full Screen IntersHHal iPad Banner (728 x 90) iPad Full Screen IntersHHal

July Aug Sept

Medium rectangles and traditional banners saw the greatest gains in eCPMs

"   Traditional ad formats such as medium rectangles and smartphone banners demonstrated eCPM increases of 42% and 20% respectively, along with an 11% for iPad banners


+42% +11%

+20%

Definition of Indices •  Auction Win Rate: Represents the share of real-time auctions with winning bids

•  Competitive Factor: Represents the average number of bids per auction

•  Effective CPM: Effective CPM is equal to total revenue ÷ total ad impressions x 1000, and represents the price advertisers are willing to pay to reach the developer’s audience

About MoPub

MoPub is the world’s leading ad server for smartphone application publishers, designed to drive more ad revenue through a single solution. We offer the first comprehensive monetization platform for mobile app publishers that combines real-time bidding, ad serving, cross-promotional capabilities and ad network mediation into one, easy-to-use platform. As a pioneer in real-time bidding for mobile, we built the first transparent market that enables advertisers and other demand side buyers to access billions of ad impressions with hyper-targeted data from app publishers. Through MoPub's open-source, flexible SDK, users get complete control and transparency into how much revenue they are receiving from every ad or campaign. MoPub was founded in 2010 by an experienced mobile advertising technology team and has raised over $19 million in venture capital from Accel Partners, Jafco Ventures, and Harrison Metal Capital. MoPub is headquartered in San Francisco with offices in New York City. For more information, please visit www.mopub.com and follow MoPub on Twitter at www.twitter.com/mopub. To receive future reports like these from MoPub, visit www.mopub.com/reports. For specific data inquiries, email [email protected].

mopub mobile advertising marketplace report (2012 q3)

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