Global Trends in Mobile Advertising Q3 2017

Transcription

1 Global Trends in Mobile Advertising

2 Global Trends in Mobile Advertising Each quarter, Smaato offers key insights into the worldwide mobile programmatic advertising landscape based on in-depth analysis of the Smaato platform s 1.5+ trillion ad impressions in that quarter. Our platform reaches over a billion unique users globally and delivers over 500 billion ad impressions each month, which are auctioned through a network of over 450 of the world s largest DSPs and ad network demand partners. Please note that this report is a quarterly snapshot of trends across Smaato s global base of publishers, advertisers and mobile device users during ; specifi c data and observations may not be comparable with previous reports. Executive Summary During, six global mobile advertising trends observed on the Smaato platform were: Mobile Ad Requests Accelerated as ecpm Growth Hit Top Speeds The Smaato platform received an all-time record high number of ad requests in, more than double (+136%) those of the same quarter last year. Even mature mobile advertising markets, such as the US (+345%), Japan (+180%) and the UK (+174%) saw huge ad request gains. Mobile ecpms also reached a record high this quarter, with EMEA posting the strongest gains of all regions. Move Aside Mobile Web Today s Mobile Users Are Increasingly App-First In-app advertising continued to be the main growth engine of worldwide mobile ad spending. In-app set a new global ad spending share record yet again in on the Smaato platform, now accounting for 96% of global ad spending. This continued shift away from mobile web toward in-app was a global phenomenon, with in-app garnering at least 85% of mobile ad spending in each of the top 20 mobile advertising markets worldwide this quarter. Video Defended Its Title as Fastest-Growing Mobile Ad Format Mobile video growth continued to outpace all other mobile ad formats, with ad spending for this highly-engaging format increasing +90% since last quarter alone. Mobile video also constituted the most valuable ad spaces of any mobile ad format on the Smaato platform, generating ecpms that were on average 4.1X higher than those of non-video ad formats. Age Matters: Millennials Mobile-First Mindset Mesmerized Advertisers Publishers who passed age data saw 2X higher ecpms than those who did not. Advertisers paid the highest global ecpms for Millennials a mobile-first generation that drove the overwhelming majority of ad spending on the Smaato platform, capturing a 79% share worldwide. Android Dominated Globally, But ios Was the Apple of Advertisers Eyes Android picked up major ad spending share points over the past year to reach an all-time high this quarter at 68% globally. Although Android commands over two-thirds of the world s overall mobile advertising spending market, ios is widening the ecpm gap between these two mobile operating systems in, ecpms for ad spaces on ios devices were an impressive +30% higher than Android ecpms. China s Smartphone Ubiquity Strengthened Mobile Ad Values Home to more than 724 million smartphone users (or 28% of all smartphone users worldwide vs. China s 19% share of global population), China is the worldwide mobile advertising industry s most important growth engine. In the past year alone, mobile ad requests from smartphones in China increased +64%, and ecpms for ad spaces on smartphones located within the country increased +74%. For advertisers looking to target these mobile-fi rst consumers, keep in mind that the majority are male (85% of China s mobile ad requests come from men s devices) and young (50% of ad requests come from users aged 13-24). 1

3 1 Mobile Ad Requests Accelerated as ecpm Growth Hits Top Speeds Mobile is currently the key driver of overall global advertising industry growth, with global mobile advertising spending increasing +34% from 2016 to Advertisers rising investment in mobile is being fueled by the increased amount of time that consumers are spending on their mobile devices and specifi cally on their smartphones. In each of the Top 5 overall advertising spending markets worldwide, consumers now spend more than 25% of their total media time on their mobile devices. US consumers clock in at 3 hours and 17 minutes daily on average, while Chinese mobile users spend more than 2 hours and 26 minutes on their mobile devices each day. 2 Additionally, for 20% of smartphone users in many countries including the US, Japan and Brazil daily app usage exceeds four hours per day. 3 Where Consumer Mobile Usage Is Growing Most Mobile Ad Request Growth by Region and Top Regional Growth Countries vs. Q GLOBAL +136% AMERICAS +223% APAC +71% EMEA +72% USA +345% Japan +180% UK +174% Peru +228% Singapore +146% Turkey +164% Canada +80% Hong Kong +110% Switzerland +108% Colombia +71% Indonesia +82% Germany +105% Chile +71% South Korea +77% Belgium +100% Mexico +63% Australia +74% France +98% Brazil +50% India +73% Poland +91% Ecuador +50% China +64% Czech Republic +89% Malaysia +62% Sweden +87% Vietnam +59% Ireland +86% New Zealand +43% Denmark +80% Thailand +34% Netherlands +74% Philippines +33% Spain +61% Taiwan +22% Source: Smaato Publisher Platform (SPX) - vs. Q emarketer, October emarketer, September AppAnnie, June

4 This was good news for advertisers in, as increasing mobile usage translated into a rapidly rising number of ad requests. Mobile ad requests on the Smaato platform more than doubled (+136%) globally in Q versus the same quarter last year. This growth was primarily driven by the Americas region (+223%) and, more specifically, by the US, which posted the highest mobile ad request growth worldwide (+345%) on the Smaato platform this quarter. APAC (+71%) and EMEA (+72%) experienced similar ad request growth each with notable standouts in key markets, including Japan (+180%), the UK (+174%), Turkey (+164%), Singapore (+146%), Hong Kong (+110%), Switzerland (+108%) and Germany (+105%). Mobile Publishers Pocket Highest ecpms Ever Mobile ecpm Growth by Country vs. Q ecpm Growth vs. Q Very High Moderate N/A Source: Smaato Publisher Platform (SPX) - vs. Q As ecpms continued to climb worldwide, was also a rewarding quarter for Smaato publishers. The region that saw the highest ecpm growth was EMEA, with markets such as Austria (+260%), South Africa (+92%), Switzerland (+75%), Ireland (+73%) and Russia (+67%) all posting particularly impressive ecpm growth rates versus the same quarter last year. Other global markets with outstanding ecpm growth included Peru (+177%), Indonesia (+95%) and China (+74%). 3

5 2 Move Aside Mobile Web Today s Mobile Users Are Increasingly App-First The global advertising industry is not just becoming increasingly mobile-fi rst it is increasingly app-first. Consumers are spending the overwhelming majority of their mobile time in apps. Currently, over 80% of mobile time worldwide is spent in-app, 4 with US consumers, for example, spending 89% of their smartphone time inapp. 5 In-App Continues to Shatter Global Ad Spending Share Records In-App vs. Mobile Web Share of Worldwide Mobile Ad Spending Q % 9 % 6 % 4 % 96 % 94 % 91 % 85 % In-App Mobile Web Q Q Q Source: Smaato Publisher Platform (SPX) - Q This amped-up consumer app usage has prompted advertisers to shift even more of their advertising budgets in apps, leading to yet another increase of the in-app share of mobile ad spending on the Smaato platform. In-app accounted for a whopping 96% of mobile ad spending in a new record high on the Smaato platform. 4 comscore, September emarketer, September

6 In-app has truly taken the mobile advertising spending world by storm, picking up 15 share points from mobile web in the past year alone. This rapid global shift is most remarkable in the Americas, a region where in-app went from holding the lowest share of mobile ad spending in Q (79%) to the largest worldwide share of mobile ad spending in (98%) an increase of 19 share points in just one year. The Americas Rapidly Shift to In-App In-App vs. Mobile Web Share of Mobile Ad Spending by Region vs. Q In-App Mobile Web : 96 % : 4 % Q3 2016: 81 % Q3 2016: 19 % : 98 % : 2 % : 94 % : 6 % : 85 % : 15 % Q3 2016: 79 % Q3 2016: 21 % Q3 2016: 85 % Q3 2016: 15 % Q3 2016: 80 % Q3 2016: 20 % In-App Mobile Web In-App Mobile Web In-App Mobile Web AMERICAS EMEA APAC Source: Smaato Publisher Platform (SPX) - vs. Q The Americas region s impressive in-app increase was primarily driven by the region s and the world s biggest mobile advertising market: the US. In-app s share of ad spending in the US grew by 15 share points in Q versus the same quarter last year, a refl ection of US adults growing amount of in-app time, which increased by a total of 12 minutes per day from 2016 to Among the Top 20 global markets ranked by mobile ad spending, in-app held at least an 86% share of mobile ad spending on the Smaato platform in every single one this past quarter. Those with the highest in-app ad spending share gains versus Q were Australia (+26 points - a notable standout), Brazil (+22 points), Argentina (+22 points), the US (+20 points), Japan (+19 points), Spain (+17 points), Canada (+16 points), the UK (+15 points) and India (+15 points). 6 emarketer, September

7 In-App Picks Up Mobile Ad Spending Share Points Worldwide In-App vs. Mobile Web Share of Mobile Ad Spending for Top 20 Mobile Advertising Markets vs. Q Q Global In-App Share Average (81%) Global In-App Share Average (96%) 1 USA 78 % 98 % 2 China 99 % 99 % 3 UK 78 % 93 % 4 Japan 67 % 86 % 5 Australia 70 % 96 % 6 Canada 82 % 98 % 7 Germany 94 % 98 % 8 South Korea 81 % 91 % 9 Brazil 76 % 98 % 10 France 88 % 99 % 11 Netherlands 86 % 95 % 12 Sweden 90 % 90 % 13 Italy 81 % 95 % 14 Mexico 83 % 97 % 15 Russia 97 % 99 % 16 Spain 79 % 96 % 17 Denmark 94 % 98 % 18 Norway 92 % 97 % 19 India 83 % 98 % 20 Argentina 76 % 98 % Q Source: Smaato Publisher Platform (SPX) - vs. Q3 2016, emarketer - September 2017 (Ranking) 6

8 In-app mobile advertising offers precision targeting and reliable tracking capabilities superior to all other major advertising mediums and as consumers continue to shift more and more of their attention to apps, the in-app environment is becoming increasingly valuable to advertisers. In-App ecpm Growth Outpaces Mobile Web In-App vs. Mobile Web ecpm Q and In-App ecpm In-App ecpm 2X Higher Than Mobile Web 3X Higher Than Mobile Web Q Source: Smaato Publisher Platform (SPX) - Q and In Q3 2016, in-app mobile ad spaces already earned twice the average ecpms of mobile web. However, in-app ecpm growth is outpacing that of mobile web, resulting in a widening gap between the ecpms of these two mobile environments. In, therefore, average in-app ad space ecpms were a remarkable 3X greater than those of mobile web ad spaces. We expect this trend to continue in the quarters ahead as consumers spend more and more time in-app. 7

9 3 Video Defended Its Title as Fastest-Growing Mobile Ad Format Not only are advertisers following consumers in-app they are following consumers to in-app video. Mobile video ad spending was already the fastest-growing mobile ad format in Q2 2017, and it successfully defended its title this past quarter as well outpacing the growth of all other mobile formats. From Q2 to Q3 2017, mobile video ad spending almost doubled (+90%) on the Smaato platform. With overall industry mobile video ad spending expected to surpass that of non-mobile video next year, 7 we expect to see this exponential upward ad spending trend toward mobile video on the Smaato platform continue in Q4 and throughout Mobile Video Ad Spending Continues to Skyrocket Total Mobile Video Ad Spending Growth Worldwide Q Mobile Video Ad Spending Q Q Q Source: Smaato Publisher Platform (SPX) - Q The driver behind mobile video s steep quarter-over-quarter ad spending growth is advertisers tapping into the changing way people consume video content. In a recent IAB survey, advertisers showed higher spend optimism for mobile video than for any other advertising medium over 60% of advertisers planned to increase their mobile video ad spending over the next year, while the majority of survey respondents merely planned to maintain or to even reduce their TV ad spending. 8 7 Zenith, October IAB, April

10 Video Ad Requests More Than Double in One Quarter Alone Mobile Video Ad Request Growth by Region vs. Q GLOBAL +120 % AMERICAS +128 % EMEA APAC +71 % +35 % Source: Smaato Publisher Platform (SPX) - vs. Q Despite bullish advertiser mobile video ad spending growth, consumers are still ahead of advertisers in their migration to mobile video. Globally, the amount of mobile video ad requests (a surrogate indicator of users mobile usage) on the Smaato platform increased an impressive +120% in the last quarter alone. While all three global regions saw high quarter-over-quarter growth, it was driven most by the Americas region, which was home to several mobile video usage growth standout markets, including Mexico (+219%), the US (+162%) and Brazil (+161%). Among the Top 10 global mobile ad spending markets, Germany saw the highest increase in mobile video ad requests versus last quarter (+184%). Global Demand Grows for Mobile Video Ads Mobile Video Ad Request Growth in Top 10 Global Mobile Ad Spending Markets vs. Q France +102 % USA +162 % China +42 % Brazil +161 % UK +150 % South Korea +130 % Your Ad Here Japan +164 % Germany +184 % Canada +74 % Australia +160 % Source: Smaato Publisher Platform (SPX) - vs. Q

11 Additionally, each of the Top 10 worldwide mobile ad spending markets saw significant video ad request growth on the Smaato platform (note that these growth rates are in one quarter alone from Q2 to ). Although APAC was the region with the lowest relative mobile video ad request growth, top APAC markets posted growth rates that were far above average, including Japan (+164%) and South Korea (+130%). Mobile Video Over 4X More Valuable Than Any Other Mobile Ad Format Indexed ecpm for Video vs. Non-Video Ad Formats X Indexed ecpm 100 Video Non-Video When It Comes to Mobile Video, Horizontal Trumps Vertical Indexed ecpm by Mobile Video Ad Size Source: Smaato Publisher Platform (SPX) - Given consumers rapidly shifting media usage patterns toward mobile video, it s not surprising that advertisers clearly value mobile video ads above any other ad format. This is good news for mobile publishers with video ad spaces, as mobile video saw an average of 4.1X higher ecpms than those of non-video ad formats in on the Smaato platform. Advertisers particularly value mobile video because consumers give their undivided attention to mobile video at twice the rate they do for TV, and mobile apps are the preferred way to access top content categories such as games, social media and entertainment Full-Screen - Vertical (320x480) Medium Rectangle (300x250) Full-Screen - Horizontal (480x320) Source: Smaato Publisher Platform (SPX) - Within mobile video, publishers looking to the make the most of their video ad spaces should consider adopting ad sizes that can accommodate horizontal videos. Of the top mobile video ad sizes on the Smaato platform, horizontal full-screen video ads (480x320) garnered the highest ecpms in +71% higher than fullscreen vertical (320x480) and +40% higher than medium rectangle (300x250). Each of these three ad sizes can accommodate Rewarded and Interstitial video ads. These ad formats are preferred by advertisers for their high engagement and high viewability and are thus also the most fi nancially rewarding for publishers. 9 Vungle,

12 4 Age Matters: Millennials Mobile-First Mindset Mesmerized Advertisers Data is an important part of mobile advertising to advertisers and publishers alike. By passing ad requests with data, app developers and mobile publishers earn signifi cantly higher revenue for each ad space, while advertisers are able to better target their ads only to those mobile users most likely to be interested in the particular advertiser s products or services. But just how much is passing data worth? Well, it depends on what kind of data is being passed, in addition to the reliability of the data. Among the three most common data parameters Age, Gender and Location (note: gender was covered in detail in our Q Global Trends in Mobile Advertising Report) determining gender is clearly the most valuable parameter. Advertisers were willing to pay more than 4X as much in for an ad impression when reliable gender data was present versus when no data was present in the ad request. Data Matters to Mobile Advertisers Indexed ecpm for Ad Impressions With and Without Passed Data 450 Indexed ecpm No Data Age Gender Location Source: Smaato Publisher Platform (SPX) - However, age is also an important parameter. On the Smaato platform, mobile ad impressions that include age data were 2.8X more valuable on average than those without data proof that, while 60 may be the new 40, at least to advertisers, age really does matter, too. 11

13 Looking more closely at impressions that do include age data, it becomes clear that one generation is disproportionately responsible for driving the mobile advertising industry forward Millennials. This generation spends up to one hour per day more in-app than mobile users from any other generation. They also use the most apps 44% of Millennials use over 20 apps per month. 10 As such active app users, it should come as no surprise that Millennials accounted for 79% of all mobile ad spending worldwide on the Smaato platform in. Millennials Motivate the Majority of Mobile Ad Spending Mobile Ad Spending Share by Generation Baby Boomers Generation X 2% 17 % Generation Z 2 % Millennials 79 % Generation Z Age <18 Millennials Age Generation X Age Baby Boomers Age 55+ Source: Smaato Publisher Platform (SPX) - Meanwhile, Baby Boomers (Age 55+) and Generation Z (Age <18) accounted for the lowest shares of ad spending on the Smaato platform at just 2% each. 11 Despite the large age gap between them, these two generations have the comparatively lowest smartphone penetration of all generations in the US, 79% of Generation Z and 64% of Baby Boomers own a smartphone, compared to 92% of Millennials. 12 Besides being the most active mobile users, Millennials are also the most adept and engaged app users of any current generation and what makes this generation particularly interesting to certain advertisers is their willingness to shell out cash on their mobile device, particularly for apps and in-app purchases. Millennials are 88% more likely than their slightly older counterparts Generation X (Age 35-54) to purchase at least one app per month, and one in fi ve Millennials downloads an average of one paid app per month. Furthermore, 70% of Millennials make at least one in-app purchase per year, compared to only 42% of Generation X and 27% of Baby Boomers comscore, September emarketer, August emarketer, January comscore, September

14 Wanted by Advertisers: Millennials, Generation X & Baby Boomers Indexed ecpm by Generation Indexed ecpm 100 Average ecpm for Ad Impressions Without Age Data Generation Z Age <18 Millennials Age Generation X Age Baby Boomers Age 55+ Source: Smaato Publisher Platform (SPX) - On the Smaato platform, ad spaces on mobile devices owned by Millennials commanded the highest ecpms of all generations in, +73% above the generation with the lowest average ecpms Generation Z. Generation X and Baby Boomers both yielded similar ecpms +54% and +57% above those of Generation Z. There was also interesting categorical variation in each generation s share of mobile ad spending on the Smaato platform particularly in the categories of Music, Dating and Style & Fashion. Although every category s mobile ad spending was dominated by Millennials due to their high overall mobile usage, certain categories saw more mobile ad spending to Generation Z, Generation X and even Baby Boomer mobile device users in the mix than others. Gen X Is Looking For Love, While Gen Z Focuses On Music & Fashion Share of Mobile Ad Spending by Generation in Select Categories 3 % 5 % 9 % 29 % 6 % 86 % 66 % 91 % 1 % 4 % Music Dating Style & Fashion Generation Z Age <18 Millennials Age Generation X Age Baby Boomers Age 55+ Source: Smaato Publisher Platform (SPX) - 13

15 Despite representing only a 2% share of total worldwide mobile ad spending, Generation Z a group of mobile natives that will likely have a hard time remembering a world without smartphones saw an over-representative share of mobile ad spending in music apps (9%). This was likely the result of Generation Z spending more time streaming music via mobile than any other age group. 14 Surprisingly, Dating is the only category on the Smaato platform where Millennials did not account for more than three-quarters of mobile ad spending. Rather, dating app usage appears to be disproportionately high among the older generations. Generation X took an impressive 29% of ad spending in dating apps, with Baby Boomers also accounting for an above-average (for their age group across categories) mobile ad spending share at 4%. Although Millennials are the most represented generation in dating apps such as Tinder and Bumble, over 50% of users in many of the world s most popular dating apps belong to Generation X, including Match, Plentyoffi sh, OkCupid and Coffee Meets Bagel Ipsos & Google, March SurveyMonkey Intelligence, December

16 5 Android Dominated Globally, But ios Was the Apple of Advertisers Eyes In the mobile OS race, Android and ios have long been the two leading contenders and the gap between them and the rest of the pack is widening. Combined, Android and ios run all but 0.2% of smartphones sold worldwide. Currently, Android powers the lion s share of new smartphones, accounting for 85% of the global total, compared to 15% for ios. 16 Yet despite Android s huge and growing lead in the global OS market share stakes, these two mobile operating systems have long been neck-and-neck in the race for mobile ad spending leadership although Android moved ahead signifi cantly this past quarter, picking up double-digit ad spending share points (+11 share points) on the Smaato platform versus the previous quarter. Android Attracts an Increasing Share of Mobile Ad Spending ios vs. Android: Mobile Ad Spending Share Q ios Android Q Q Q Source: Smaato Publisher Platform (SPX) - Q Why has ios accounted for nearly half of the ad spending share on the Smaato platform for so long despite their minority hold on the global smartphone market? The answer is simple ios users generally spend more money, making them more valuable on a per-user basis to advertisers. ios users spend almost 3X as much on mobile transactions as Android users ($32.94 vs. $11.54). 17 They spend nearly 2.5X more on in-app purchases. 18 Last but not least, they also engage with mobile ads more frequently than Android users. 19 Advertisers have therefore been eager to invest in ad space on ios devices. 16 IDC, May Moz, October AppsFlyer, July Merkle, July

17 However, mobile advertising spending inevitably follows consumers OS preference, and advertising spending on the Smaato platform has seen a progressive shift towards Android over the past year. Android s share of mobile ad spending reached an all-time high in at 68%. Americas Region Drives Global Ad Spending Shift to Android ios vs. Android: Share of Mobile Ad Spending by Region vs. Q GLOBAL 32 % 68 % Q % 57 % AMERICAS 30 % 70 % Q % 57 % EMEA 46 % 54 % Q % 50 % APAC 27 % 73 % Q % 70 % ios Android Source: Smaato Publisher Platform (SPX) - vs. Q The Americas and APAC regions were clearly the driving forces behind Android s ad spending share gains on the Smaato platform. In both of these regions, Android accounted for at least 70% of mobile ad spending in Q a factor driven by the Android-powered emerging mobile markets in each of these regions. The most dramatic shift toward Android over the past quarter, however, occurred in the Americas region, where Android went from 57% of mobile ad spending share in Q to 70% in. This regional shift refl ects the changing OS landscape in the region s most mature mobile market, the US, where Android gained +12 ad spending points during this period. However, Latin America s strengthening mobile advertising industry also played a vital role in Android s global success mobile ad spending in LatAm is expected to grow 60% in 2017, and the countries within this region are predominantly powered by Android emarketer, September

18 Top Markets in the Americas & APAC Are Powered by Android Mobile Markets With Highest Share of Android Mobile Ad Spending India 97 % Indonesia 96 % Peru 93 % Argentina 93 % South Africa 90 % Brazil 89 % Mexico 88 % Chile 88 % Colombia 87 % Poland 87 % Source: Smaato Publisher Platform (SPX) - Both the APAC region and the Americas region are home to several countries where Android has a more than 90% share of mobile ad spending including India, Indonesia, Peru and Argentina. In each of these key regional markets, mobile is in a high-growth phase, as Android-powered smartphones become increasingly affordable and popular. In India, for example, the number of smartphone users will increase by over 40 million in 2017 alone (that s as much as all of the current smartphone users in the EMEA region s biggest mobile ad spending market: the UK). As a result, mobile ad spending in India is expected to grow +85% this year alone emarketer, October

19 ios ecpms Rise Above Android ios vs. Android: Indexed ecpm by Quarter Q % Indexed ecpm -10 % % % Q Q Q ios Android Source: Smaato Publisher Platform (SPX) - Q Just one year ago, average Android ecpms had actually moved slightly ahead of those of ios. However, their positions reversed again in Q and ios ecpms have become increasingly higher relative to Android s ecpms ever since. In, the average ecpms for ad spaces on ios devices were a chart-topping +30% higher than for Android ad space inventory, and in light of the recent iphone X release with its ultra-high ASP (average selling price), we expect this gap to continue to widen over the next year. 18

20 6 China s Smartphone Ubiquity Strengthened Mobile Ad Values China is a mobile market of unmatched scale home to more than 724 million smartphone users, nearly double the entire population of the US. 22 Smartphones have achieved a level of ubiquity in China that remains to be seen anywhere else in the world. In urban China, where 99% of the adult population owns a smartphone, 23 people rely on their smartphones to an unprecedented degree. From paying electricity bills to booking bus tickets to getting medical advice, China has a world-class, sophisticated app for that. Over 20% Of China s Internet Users Are Mobile-Only Mobile-Only & Multi-Platform Shares of Total Digital Population in Top Mobile Markets % 12% 8% China USA UK 8% 4% Canada Germany Mobile-Only Share of Total Digital Population Multi-Platform Share of Total Digital Population Source: comscore, September 2017 For many consumers in China, internet access is not just mobile-first it is mobile-only. An impressive 22% of China s digital users only access the internet via mobile device almost twice the percentage of any other top mobile market, including the US (12%) and the UK (8%). 24 Thus, mobile is the only advertising method for programmatic buyers to reach China s 170 million mobile-only consumers. 22 CNNIC, August Sinomonitor, October comscore, September

21 China s Mobile Ad Requests & ecpms Continue to Climb Mobile Ad Request & ecpm Growth in China Q Mobile Ad Requests 20 % 64 % ecpm 215 % 74 % Q Q Q Q Source: Smaato Publisher Platform (SPX) - Q As China s consumers increasingly rely on their smartphones and especially on mobile apps to run their everyday life, their mobile-centric lifestyle results in their smartphones requesting more mobile and in-app ads than ever before. On the Smaato platform, mobile ad request volume in China increased +64% from Q to. The premium advertisers are willing to pay for the ever-growing ad requests is on the rise. From Q to, average ecpms for ad spaces on mobile devices located in China increased +74%. This rapid growth has led to China attracting the highest ecpms worldwide on the Smaato platform, even beating out mobile powerhouses such as the US and the UK. China Tops Worldwide ecpms Indexed ecpm for Top 10 Mobile Ad Spending Markets January - September 2017 China 833 USA 611 UK 356 Japan 100 Australia 456 Canada 411 Germany 356 South Korea Brazil France 289 Source: Smaato Publisher Platform (SPX) - Jan - Sept

22 China s Youth Are Mobile-Obsessed Share of Mobile Ad Requests by Age Group in China & Worldwide % 11 % % 39 % % 52 % % 11 % % 5 % % 1 % 4 % 1 % China Global Source: Smaato Publisher Platform (SPX) - A distinctive hallmark of China s mobile users is their age distribution. Worldwide, half of all ad requests on the Smaato platform come from mobile users aged in China, however, users aged account for half of the country s mobile ad requests, with year olds accounting for the largest mobile ad request age group. Many of these young mobile users are true mobile natives, spending much of their childhood with a smartphone in hand. As a result, this age group now contains the country s most active app users in China, over 25% of mobile gamers are under 20 years old 25 and 39% of mobile commerce is conducted by those under the age of Mobile Gaming in China, OMD, May

23 Which Gender Is Driving Mobile Usage? In China, Men Are at the Wheel Mobile Ad Request & Ad Spending Share by Gender in China, the US and Worldwide Men 57 % Ad Requests Women 43 % 85 % 15 % 54 % 46 % Ad Spending 48 % 52 % 86 % 14 % 45 % 55 % Source: Smaato Publisher Platform (SPX) - One of China s other noteworthy characteristics compared to other countries on the Smaato platform is its mobile gender divide. Although men requested slightly more ads than women both globally and within the US, the majority share of mobile ad spending went to women s devices globally. In China, on the other hand, men held the majority share of both ad requests and ad spending and by a wide margin. This gender disparity can be seen in many of China s top app categories. For example, there are 3X more male mobile payment users in China than female, 27 and men account for 63% of mobile gamers in China. 28 Advertisers looking to take advantage of China s massive mobile user base should keep the country s unique age and gender distributions in mind. Home to so many mobile-only users, in-app advertising is the most effective way for advertisers to maximize campaign reach in China and with increasing mobile ecpms, Smaato offers a leading monetization platform for publishers with Chinese traffic. 27 emarketer, February Mobile Gaming in Asia,

24 Thank You We hope you ve enjoyed Smaato s report on Global Trends in Mobile Advertising. To download white papers, read case studies and subscribe to our monthly publisher & app developer newsletter, visit our website at About Smaato Smaato is the leading global real-time advertising platform for mobile publishers and app developers. Smaato runs the world s largest independent mobile ad exchange and has been pioneering innovative, mobile-fi rst solutions for publishers since The Smaato Publisher Platform (SPX) is a global, intelligent and free-to-use self-service platform and ad server that brings native, video and real-time advertising to over 90,000 app developers and mobile publishers. The company s worldwide reach and extensive network of 450+ demand partners provide a massive variety of advertisers with one single integration. Smaato manages up to 19 billion ads every day around the world, across over 1 billion unique mobile users each month. 23

25 San Francisco 240 Stockton St 10th Floor San Francisco, CA T: +1 (650) New York Empire State Building 350 Fifth Avenue, Suite 4210 New York, NY T: +1 (646) Hamburg Valentinskamp 70 Emporio 19th Floor Hamburg T: +49 (40) Singapore 12 Marina Boulevard, #35-01 Marina Bay Financial Centre Tower 3 Singapore T: Shanghai 1018 Changning Road 21F Cloud Nine Plaza, Changning District Shanghai, China T: