mopub rtb insights, april 2013

Mobile Advertising Monthly InsightsApril 2013

Wednesday, May 8, 13

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

Market Color

This is our first month of the MoPub monthly insights report, designed to give you a high level view of programmatic activity in mobile more frequently than the usual quarterly report. Please let us know what else you’d like to see here!

Highlights

• This month, we saw a strong rebound in all key metrics compared to Q1 2013: bid depth, eCPM, win rate and eCPC

• Facebook reported their Q1 results and showed “real revenue” from their app install business, which is likely taking share from lower performing performance channels

• Desktop participants adopting RTB quickly: Turn and AppNexus joined the MoPub Marketplace in April and are ramping up campaigns this month

• We observed material iOS7 traffic for the first time in late April/early May: roughly 2K monthly unique devices concentrated in US and Vietnam


mailto:[email protected]



Platform pricing is outpacing Q3 and early Q4 metrics, as competition increases for available inventory

$0

$0.20

$0.40

$0.60

$0.80

$1.00

$1.20

May 2012 Jun 2012 Jul 2012 Aug 2012 Sep 2012 Oct 2012 Nov 2012 Dec 2012 Jan 2013 Feb 2013 Mar 2013 Apr 20132.0

4.0

6.0

8.0

10.0

$0.66 $0.66

$0.55$0.60 $0.61 $0.63

$0.69

$1.03

$0.77

$0.62

$0.76$0.81

Effect of Demand on Pricing on MoPub Marketplace (Banners + Interstitials) - May 2012 to Apr 2013

eCPM Competitive Factor

Although Competitive Factor is not as high as we observed in late Q4, it is enough to move prices considerably higher than even October and November records





Programmatic buying increased in April with Bid Depth up 60% and Win Rate nearly doubling

0

0.25

0.50

0.75

1.00

1.25

Apr 2012 Jan 2013 Apr 2013

0.85

0.510.56

Bid Depth

0%

5%

10%

15%

20%

Apr 2012 Jan 2013 Apr 2013

20%

10%

18%

Win Rate

April produced record highs in our key buy-side metrics of Win Rate, which nearly doubled, and Bid Depth, which was up 66% quarter over quarter

+97%

+66%





Platform-wide eCPM and eCPC showed more modest growth sequentially Q/Q

$0.50

$0.60

$0.70

$0.80

$0.90

$1.00

Jan 2013 Apr 2013

$0.81

$0.77

eCPM (USD)

$0

$0.020

$0.040

$0.060

$0.080

$0.100

Jan 2013 Apr 2013

$0.052$0.048

eCPC (cost-per-click, USD)

eCPM grew 5% from $0.77 to $0.81, while eCPC increased 8% from $0.048 to $0.052, indicating a higher overall per-install price platform wide

+5% +3%





Demand has increased 3X for Interstitials compared to banners, as performance app-install spend grows

0

0.25

0.50

0.75

1.00

1.25

Jan 2013 Apr 2013

1.33

0.31

0.79

0.50

Bid Depth

0%

6%

12%

18%

24%

30%

Jan 2013 Apr 2013

29%

7%

18%

9%

Win Rate

Banner Interstitial

New demand partners have “discovered” interstitial formats and have started to bid them up substantially just in the last three months

4X 3X





Android still has a 30% discount in pricing compared to iOS, but Bid Depth increased nearly 2X

Android’s eCPM stayed flat despite increased bid depth; previously unpurchased Android inventory is now clearing through RTB as Win Rate increased from 8% to 22%

0

0.25

0.50

0.75

1.00

1.25

Jan 2013 Apr 2013

0.87

0.46

0.83

0.54

Bid Depth

$0.20

$0.40

$0.60

$0.80

$1.00

Jan 2013 Apr 2013

$0.62$0.62

$0.95

$0.84

eCPM

iOS Android

-30%





iPad showed better resiliency in Bid Depth and Win Rate through the traditionally soft Q1 period

0

0.25

0.50

0.75

1.00

1.25

Jan 2013 Apr 2013

1.05

0.62

1.10

0.84

Bid Depth

0%

8%

15%

23%

30%

Jan 2013 Apr 2013

25%

12%

27%

18%

Win Rate

iPad iPhone

Bid depth for iPhone grew 77% compared to growth on the iPad of 33%, but ended up comparable





iOS6 Adoption is nearly complete with over 90% of iOS MAUs using a 6.0 version or later

60%

67%

74%

81%

88%

95%

Nov 2012 Dec 2012 Jan 2013 Feb 2013 Mar 2013 Apr 20130M

60M

120M

180M

240M

300M

62M

80M

115M

162M

201M

222M

Unique iOS6 Devices seen on MoPub Marketplace from Nov 2012 - Apr 2013

% iOS Devices using iOS6 iOS6 Monthly Active Users (MAUs)





iPad becoming an increasing share of total iOS footprint, continuing strong growth even after “iPad Christmas”

0M

60M

120M

180M

240M

300M

Nov 2012 Dec 2012 Jan 2013 Feb 2013 Mar 2013 Apr 2013

60M49M

41M

33M

23M

18M

Unique iOS6 Devices seen on MoPub Marketplace from Nov 2012 - Apr 2013

MAU (iPhone + iPod) MAU (iPad)





Three core themes are driving consumer and advertiser interest in mobile

• Consumers are rapidly adopting smartphone and tablets for Internet access outside of the workplace

• Mobile apps are an increasing share of time spent on mobile, as they provide the best experience for consumers and marketers alike

• Advertisers are adopting programmatic buying mobile faster than they did in desktop





How to Read the MoPub Marketplace Monthly Insights Report

The MoPub Marketplace Monthly Insights Report provides market data and insights on the trends of programmatic buying in mobile advertising. Out conclusions and measurements are based on all of the auctions that we have conducted from October 2011 to present.

MoPub Marketplace is a real-time bidding exchange for mobile ads, where advertisers and their 65+ demand-side partner bidder platforms can bid on 1.5B ad requests every day.

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

RTB Glossary - a definition of key terms used in this report:

• Bid Depth. The total number of bids received divided by the number of auctions conducted. This provides a rough measure of overall demand for inventory.

• Competitive Factor. The average number of bids received for all auctions with a winning bid.

• Bid Average. The average of all submitted bids across all auctions.

• Win Rate. The percentage of auctions that had a winning bid that exceeded the publisher’s floor price. These auctions are referred to as “won auctions.”

• eCPM. The average clearing price of all won auctions (all auctions are bid on a CPM basis).

• eCPC. The implied CPC on the MoPub exchange, calculated by dividing the total auction revenue generated by the number of clicks tracked on those purchased impressions.

• Banner. We consider 320x50 and 768x90 to be banner formats. We typically do not include 300x250 in computations as it can be used in a modal or modeless context.

• Interstitial. We consider 320x480 and 1024x768, in both orientations, to be interstitial, or “modal” formats.

0B

10B

20B

30B

40B

50B

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar

Auctions / Month - 2012-13






Questions about the Report? Contact:Natalie Sandoval, [email protected]




mopub rtb insights, april 2013

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