Top Story

Home >> Digital >> Article

Mobile web spends up 100 per cent, as in-app advertising drops, says Smaato

06-October-2015
Font Size   16
Mobile web spends up 100 per cent, as in-app advertising drops, says Smaato

A global report by digital ad platform Smaato sheds new light on how companies are approaching digital ad spends. The report entitled “Global Trends in Mobile Programmatic” report for H1’15, determined that while apps still command the market for overall ad spending on mobile, spending on the mobile web increased by 100 percent over the past year.

Smaato analyzed data from billions of mobile ad impressions served on its exchange during the first half of 2015 to reveal that mobile web usage is soaring. According to the report spending on the mobile web now accounts for 38 per cent while the percentage spent on apps dropped to 62 per cent from 72 per cent last year.

The report also stated that Facebook and Twitter could be the driving force behind this surge in mobile web usage. A reason for this could be that social media apps are increasingly being used by publishers to spread their content; they contain a large number of posts with external links. So, these might actually be driving more traffic to the mobile web and hence away from apps.

So if Facebook and Twitter’s apps are actually reducing overall app usage, how does it affect in-app advertising?

“While Facebook and Twitter are giant apps that have huge user base, it has to be noted that an average mobile user in Asia has over 30+ different apps installed. As such, in-app advertising is still growing in more verticals other than social networking services,” explained Malcom Wong, MD, APAC at Smaato.

 “The shift to mobile began with the mobile web and then apps took over,” further added Ragnar Kruse, CEO of Smaato. “Although we can’t say for sure whether we’re looking at a huge comeback of the medium, the fact remains that publishers and advertisers can’t afford to ignore the mobile web. Mobile ad strategies - whether it be the size of ads or the use of rich media - must be created with both app and mobile web usage in mind.”

While the United States continues to be the top country on Smaato Exchange for mobile ads inventory and spending, Asia Pacific countries recorded the highest growth during the first half of 2015 compared to the same period in 2014. China grew by 315 per cent, India, 279 per cent, Singapore 225 per cent, Indonesia, 142 per cent and Malaysia, 126 per cent.

 In terms of the target audience, Smaato said advertisers are “doubling down” to target families and parents on mobile. According to the report, spending on this demographic increased by over 300 per cent over the past year, while the second most lucrative vertical only rose by 87 per cent. “Advertisers will pay nearly 4 times as much to target someone by age and/or gender. Publishers who pass this information are seeing dramatically higher eCPMs,” the report stated.

Bigger is better
Another facet of the study was that larger ad formats have found popularity among advertisers, especially in developing markets. The report stated that spends on larger ads (300x250 and up) rose by over 250 per cent, in contrast with the overall spend on the original app-only banner ad size (320x50), which only increased by 30 percent. Spends on larger banner ads (320x480) interstitials grew by 325 per cent.

It is a common perception that the larger the ad format, the more chances of a person actually seeing the ad. However, with new ways of thinking about ad intrusion, many have started to questions this wisdom. Wong agreed that larger formats do in general see a higher average click through rates.

“The key point here is to spread the marketing message via mobile display banners. For advertisers who want a greater emphasis on a key marketing message will prefer larger ad formats. For publishers, some might find larger ad formats intrusive to their user’s experience in the app and some mobile users do not find larger formats receptive. It is important to balance a user’s experience and flow, so that the ads will be more appealing and enticing to users. Basic smaller banners are generally accepted by all mobile users, while the clicks might not be as high, but it does sieve out interested users from its basic marketing message, those will still click to find out more,” he opined.

Programmatic has huge potential in India

With digital and mobile marketing becoming a massive piece of the overall pie, the future for programmatic buying is bright in the country opined Wong. For example, the report placed India as the third highest spender on mobile and the second biggest in terms of supply, with a growth of 279 per cent over 2014 globally

“Mobile adoption rates grows and users are increasing keen on having smartphones. Segments like electronics, retail, banking, food and beverages, fashion, education, etc are spending big on digital. India is growing in programmatic usage for brands who wish to specifically target a defined set of audience. We are seeing more targeting done on parameters of gender, age and specific location,” said Wong.

When asked about specific trends in the digital ad buying landscape, Wong said more players are moving moving from a pure ad network to incorporating RTB buying into their offerings to clients. “Advertising agencies are moving more buys into programmatic as now targeting and engaging the right audience is more important. We see a future trend of big data and retargeting coming mainstream in India,” he said.

The MD of Sai Estate Consultants, Chembur, on their marketing strategy, adopting a carpet bombing approach, response to the Wajood app and why he now allocates maximum of his marketing spends on digital

Prachi Mohapatra on fbb’s latest campaign, one-year after going omni-channel, and its growing reliance on content marketing

The marketing head of Greenpanel on marketing approach and how the company is working towards educating consumer about MDF

BookMyShow, Uber, Chumbak, Viacom18 and Radio City are some of the clients of the company

right
left
KARAN THAPAR & SHEKHAR GUPTA DISCUSS JOURNALISTIC ETHICS AT THE PRINT’S ‘OFF THE CUFF’ WOMEN ECONOMIC FORUM AWARDS 2018 RECOGNIZE WOMEN LEADERS OF THE DECADE THE 6TH EDITION OF IAA AWARDS RECOGNIZES THE WORK OF INDUSTRY PROFESSIONALS 11 INDUSTRY EXPERTS PRESENT  THEIR FAVOURITE DIGITAL CASE STUDIES @AD CLUB’S ‘D-CODE BUSINESSWORLD LAUNCHES 14TH EDITION OF MARKETING WHITEBOOK IN MUMBAI INDUSTRY VETERANS CHEER AS ADMAN AMBI PARAMESWARAN LAUNCHES NEW BOOK SPONG AAAI HONOURS VETERAN ADMAN RAM SEHGAL WITH THE 2018 LIFETIME ACHIEVEMENT AWAR PITCH TOP 50 BRANDS 2018 AWARDS COMPANIES WITH BEST MARKETING PRACTICES TEAM BBDO ORGANIZES AJAI JHALA’S FAREWELL WITH FRIENDS & ASSOCIATES RADIO CITY CELEBRATES ITS 17TH ANNIVERSARY WITH CONCERT, AWARDS AND FUN 5TH EDITION OF TIMES NOW & ICICI BANK’S NRI OF THE YEAR AWARDS GLOBAL INDIANS PITCH CMO SUMMIT BENGALURU SEES TOP INDUSTRY LEADERS AND MARKETERS IN ATTENDANCE DISTINGUISHED JURY COMES TOGETHER TO PICK WINNERS FOR PITCH’S TOP 50 BRANDS PITCH CMO SUMMIT BANGALORE SEES TOP CMOS ACROSS INDUSTRIES IN ATTENDANCE 1ST REPUBLIC TV GULF INDIAN LEADERSHIP SUMMIT & AWARDS HONOUR STALWARTS OF INDIAN GULF BUSINESS COMMUNITY SONY YAY! CELEBRATES ITS FIRST BIRTHDAY WITH PARTY FOR TRADE PARTNERS THOUGHT LEADERS AND TOP DIGITAL MARKETERS SPEAK @ EXCHANGE4MEDIA GROUP’S TECHMANCH 2018 IN MUMBAI EXCHANGE4MEDIA’S IDMA 2018 RECOGNIZES INDUSTRY’S BEST DIGITAL MARKETING CAMPAIGNS REALTY PLUS UNVEILS COFFEE TABLE BOOK AT 10TH CONCLAVE & EXCELLENCE AWARDS @AHMEDABAD EMINENT JURY CONGREGATES TO PICK WINNERS OF INDIAN DIGITAL MARKETING AWARDS 2018

From a humorous take on promotion-led ads during Independence Day to memoirs of those who fought for our freedom, this year, brands have adopted some interesting angles

The company’s EBIT stood at Rs 96.7 crore, up 30.5% from the corresponding quarter in 2018.

Gunn comes to BBDO India via DDB Mudra and Colenso BBDO.