As more consumers continue to increase the time spent on the smartphones and in particular on their apps, it’s then no surprise that in-app advertising continues to dominate as a key growth area, when it comes to global mobile ad spending with video ads dominating in-app advertising. Recent Data from real-time advertising platform Smaato revealed that in-app ad spend takes at least 85 percent of mobile ad spending in each of the top 20 mobile advertising markets worldwide.
According to the data released, mobile video ad spending growth continues to outpace that of all other mobile ad formats. This year alone, Video ad spending has almost doubled, showing more 90 percent growth in one quarter alone. Ad spaces that played mobile video ads earned 4.1 times higher eCPM (effective cost per mille — the revenue per thousand viewing the ad in other words) on average when with those with non-video ad formats.
“Although in-app advertising already became more than three quarters of the worldwide ad spending on our platform last year, there was clearly still more upside, as in-app established its global mobile ad spending dominance in 2017,” says Ragnar Kruse, CEO and co-founder of Smaato. “Given consumers’ pronounced shift to in-app over the past year, it is not surprising that advertisers followed, especially considering the significant targeting precision and tracking accountability advantages that in-app advertising give advertisers versus any alternative — whether mobile web, desktop or traditional television.”
Other interesting findings from the survey is that millennials are primarily the major targets when it comes to mobile advertising when compared to other demographics such as Gen Z, Gen X and Baby Boomers, capturing a 79 percent share worldwide. The data revealed that advertisers paid the highest global eCPMs for millennial smartphone users.