Mobile Spend, Traffic Grows, Advertisers Adopt Rich Media Units

Mobile advertising shows no signs of sluggishness. Global mobile traffic has grown 45.5% quarter-over-quarter between Q3 2013 and Q1 2014, and ad spend has increased 62% over the same span.

The data comes from AppFlood, a mobile real-time bidding (RTB) network from China, and its “State of Global Mobile Advertising" report, featuring data from Q1.

Interstitial ad units accounted for the bulk (70%) of mobile revenue in Q1 2014, but its share of the pie decreased 14% month-over-month during the first three months of the year. Interstitial ads have made way for rich media units, which grew 34% month-over-month during Q1 2014 while accounting for 11% of all mobile revenue. Banner ads hovered at about 1%, while “Other” formats made up 18% of revenue during Q1.

Overseas markets are growing in terms of traffic -- particularly Asia and the Middle East, which accounted for 27% and 23% of all mobile traffic in Q1, respectively -- but all markets trail North America when it comes to install rates.

North America had the highest install rate at 7.72% in Q1, followed by Western Europe (6.81%) and Oceania (5.81%). There was a sizable drop after that, with Eastern Europe (3.34%) and Asia (2.83%) rounding out the top five.

The cost-per-install (CPI) was significantly cheaper in Q1 2014 than in either of the two previous quarters. The CPI on AppFlood’s network was $0.30 in Q1 2014, down big from the $0.51 in Q4 2013 and the $0.43 in Q3 2013. AppFlood attributes this to a post-holiday cool off.

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