Android Inventory Soars On Exchanges, Demand Shifting To Private Markets

A report by PubMatic shows that Android users are increasingly valuable to advertisers, who are are targeting such users more and more, with Android app inventory prices rising 147%, year-over-year. The marketing automation software provider’s “Q1 2016 Quarterly Mobile Index” (QMI) report also said that while Apple iOS app inventory prices are still higher than Android's on an absolute basis, iOS app CPMs rose only 62% year-over-year.

Announced on Tuesday, the report also showed that advertiser demand has shifted to private marketplaces (PMPs) during major sporting events in Q1 such as the Super Bowl, the Six Nations Championship and NCAA College Basketball Tournament. 

“More media buyers are realizing that PMPs allow them to pre-plan on campaigns ahead of major events, because PMPs offer preferred access to high-quality inventory, at scale,” stated Rajeev Goel, co-founder and CEO of PubMatic.

PubMatic’s Q1 2016 QMI report also found that mobile app and mobile Web CPMs grew 67% and 57% year-over-year, respectively, an indication of improving quality and value across both mobile platforms. Inventory quality on the mobile Web is especially important to premium publishers that are seeing the majority of their mobile traffic originating from the mobile Web via browsers.

PubMatic found that in Q1, 80% of monetized mobile inventory came from the mobile Web, the rest via mobile apps.

The report analyzed billions of daily impressions from PubMatic’s Q1 2016 operational data to identify five key trends in global mobile advertising for the quarter:

  1. As mentioned above, Android app inventory value was up nearly 150% year-over-year, as advertisers targeted the majority of global mobile consumers.
  2. For premium publishers, the mobile Web represented the majority of mobile traffic and inventory, and a significant monetization opportunity.
  3. Average mobile CPMs in the Americas and the EMEA (Europe, Middle East and Africa)  regions grew 30% and 64%, respectively, demonstrating the increasing quality of mobile inventory on a global level.
  4. Major sports events attracted significant spending in mobile private marketplaces, driving PMP volume in the sports category over 1000% year-over-year.
  5. Programmatic is improving mobile CPMs, driving broader mobile advertising growth.
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