NEXAGE MOBILE INSIGHTS / SEPTEMBER 2014
Nexage Mobile Insights SEPTEMBER 2014
www.nexage.com | Twitter: @Nexage
NEXAGE MOBILE INSIGHTS / SEPTEMBER 2014
App developers are beating the market App developers on the Nexage Marketplace are significantly out-performing the market. Developers have realized 165% revenue growth on the Nexage Marketplace in 2014— double the current market growth for mobile advertising. Revenue growth was driven by the combination of price and volume gains. eCPMs have grown 55% in 2014, continuing a long-standing pattern of CPMs increasing on the Nexage Marketplace. Price gains are driven by:
»» Brand buyers becoming more interested in buying app inventory »» App marketers willing to pay more for high-value users (i.e. users who “look like” current, highly-engaged and revenue-generating users)
»» The resultant increased competition for app inventory, which grew bid density (the competitive level per auction) by 85% eCPM gains have been realized as volumes have significantly grown; ads delivered grew 66% in 2014.
EXHIBIT 1: Developer Revenue Growth
Developer growth on the Nexage Marketplace eMarketer 2014 prediction
JAN
FEB MAR APR MAY JUN
JUL
AUG SEP
OCT
NOV DEC
Source: Nexage Marketplace, eMarketer Note: eMarketer forecast was applied monthly by normalizing annual data.
Page 1
www.nexage.com | Twitter: @Nexage
NEXAGE MOBILE INSIGHTS / SEPTEMBER 2014
Mobile IDs are creating new & significant value...
EXHIBIT 2: Device ID eCPM Premium
There are traditional reasons why media buyers value IDs: campaign
Developers passing device ID
management (e.g., frequency capping), targeting (e.g., to enrich the
Developers not passing device ID
impression with audience segment data) and negative targeting (e.g., to guide CPI spend). 67% eCPM premium
But something has changed to further drive up the value of IDs. Agencies and media buyers are actively building their cross-screen linking capabilities and using the mobile ID as raw material for those linking solutions. This is the key lynchpin to activating the full weight of online and offline data. The demand for IDs has been a major reason that eCPMs for ID-enabled impressions garner a 67% premium
JUN 2014
over impressions without device IDs. This dynamic has staying power
Source: Nexage Marketplace
and will help sustain strong price and fill performance.
...and location data is fueling brand spend Brand buyers—notably CPG and retailers—continue to ramp up their local and hyperlocal campaigns to drive foot traffic and in-store sales. A major CPG advertiser grew spend
EXHIBIT 3: Developer Lat/Long Bid Density Premium Developers passing lat/long
392%
Developers not passing lat/long
in Q2 as they moved budget to mobile programmatic & readied for a breakthrough holiday season. This dynamic is positively affecting the developers selling on the Nexage Marketplace, particularly as brands become more familiar and
131% bid density premium
comfortable with well-lit, brand-safe app inventory:
»» Lat/long-enabled impressions produced a 49% eCPM premium; we expect lat/long CPMs to accelerate into Q4 and the holiday period as they did in 2013.
»» Lat/long-enabled impressions garnered 131% greater bid
JUN 2014 Source: Nexage Marketplace
density (auction competition that stimulates CPM gains) than impressions not enabled with lat/long.
Page 2
www.nexage.com | Twitter: @Nexage
NEXAGE MOBILE INSIGHTS / SEPTEMBER 2014
Developers are getting creative and seeing results
EXHIBIT 4: High-impact Creative Ad Request Growth 516%
Rich media, video, interstitial and native formats have been attracting a lot of attention recently, and developers are 346%
taking note. Developers are ramping up rich media, video, and interstitial traffic to gain the CPM and yield advantage. On the Nexage Marketplace:
»»
Interstitial-enabled ad requests grew 194%
»»
Rich media-enabled ad requests grew 346%
»»
Video-enabled ad requests grew 516%
194%
INTERSTITIAL
RICH MEDIA
VIDEO Source: Nexage Marketplace
The better yield performance gives developers an opportunity to send fewer, more engaging ads—a critical value as developers actively compete for consumer attention and loyalty partly on the basis of user experience.
EXHIBIT 5: High-impact Creative Ads Delivered Growth
This increased supply has been met with rapidly
404%
growing demand, measured in ads delivered and CPM performance:
»»
Interstitials grew 178% while producing a 3-5x CPM premium
»»
178%
216%
Rich media ads grew 216% while producing a 5-10x CPM premium
»»
Video ads grew 404% while producing a 7-12x CPM premium
Page 3
INTERSTITIAL
RICH MEDIA
VIDEO Source: Nexage Marketplace
www.nexage.com | Twitter: @Nexage
NEXAGE MOBILE INSIGHTS / SEPTEMBER 2014
Publishers are “apping” it out Traditional publishers have seen hyper-growth in the percentage of consumers accessing content via mobile devices. Most have crossed the tipping point where more than 50% of content is consumed via mobile—and only forecast this number reaching greater heights. This number is notable, but it fits the larger trend where mobile consumption has already overtaken desktop. Equally as important, publishers have noted consumers’ preference to consume content via apps. Publishers are ramping up the investment in mobile apps in concert with building out their mobile web properties. The dual investment is a nod to the fact that users are active on both platforms; the emphasis on apps signals that publishers want to directly participate in the extraordinary, above-market performance of app traffic on the Nexage Marketplace.
EXHIBIT 6: Number of Apps & Mobile Websites Number of Mobile Websites Number of Apps
JAN 2013
JUN 2014 Source: Nexage Marketplace
Page 4
www.nexage.com | Twitter: @Nexage
NEXAGE MOBILE INSIGHTS / SEPTEMBER 2014
The new normal is here Advertisers and agencies are adapting to a mobile-centric, app-centric world—where mobile will soon exceed desktop in ad spend and 80% of mobile traffic is app traffic. In other words, if advertisers are going to reach the mobile consumer, they will need to reach them through apps. This pragmatic view is coupled with greater familiarity and comfort in the performance of brand-safe app traffic sold on the Nexage Marketplace. Welcome to the new normal.
THE NEW NORMAL
PREMIUM DEVELOPERS
MOBILE-FLUENT BRANDS
THE OLD WORLD
Page 5
www.nexage.com | Twitter: @Nexage