Mobile Advertising Monthly Insights April 2013 - MoPub

Mobile Advertising Monthly Insights April 2013

Wednesday, May 8, 13

Market Color This is our first month of the MoPub monthly insights report, designed to give you a high level view of programmatic activity in mobile more frequently than the usual quarterly report. Please let us know what else you’d like to see here! Highlights

• This month, we saw a strong rebound in all key metrics compared to Q1 2013: bid depth, eCPM, win rate and eCPC

• Facebook reported their Q1 results and showed “real revenue” from their app install business, which is likely taking share from lower performing performance channels

• Desktop participants adopting RTB quickly: Turn and AppNexus joined the MoPub Marketplace in April and are ramping up campaigns this month

• We observed material iOS7 traffic for the first time in late April/early May: roughly 2K monthly unique devices concentrated in US and Vietnam

MoPub Proprietary Data. For more information contact [email protected] Wednesday, May 8, 13

Platform pricing is outpacing Q3 and early Q4 metrics, as competition increases for available inventory Although Competitive Factor is not as high as we observed in late Q4, it is enough to move prices considerably higher than even October and November records Effect of Demand on Pricing on MoPub Marketplace (Banners + Interstitials) - May 2012 to Apr 2013 $1.20 10.0 $1.00

$1.03

8.0 $0.80 $0.77

$0.60

$0.66

$0.66 $0.55

$0.60

$0.61

$0.63

$0.76

$0.81

$0.69

6.0

$0.62

$0.40 4.0 $0.20 $0

May 2012

Jun 2012

Jul 2012

Aug 2012

Sep 2012

Oct 2012 Nov 2012 Dec 2012

eCPM MoPub Proprietary Data. For more information contact [email protected] Wednesday, May 8, 13

Jan 2013

Competitive Factor

Feb 2013

Mar 2013

Apr 2013

2.0

Programmatic buying increased in April with Bid Depth up 60% and Win Rate nearly doubling April produced record highs in our key buy-side metrics of Win Rate, which nearly doubled, and Bid Depth, which was up 66% quarter over quarter Bid Depth

Win Rate

1.25

20% 20% 18%

1.00

15%

0.75 %

+66

0.50

0.56

10%

10%

5%

Apr 2012

Jan 2013

Apr 2013


%

0.51

0.25 0

+97

0.85

0%

Apr 2012

Jan 2013

Apr 2013

Platform-wide eCPM and eCPC showed more modest growth sequentially Q/Q

eCPM grew 5% from $0.77 to $0.81, while eCPC increased 8% from $0.048 to $0.052, indicating a higher overall per-install price platform wide eCPM (USD)

eCPC (cost-per-click, USD)

$1.00

$0.100

$0.90

$0.080

$0.80

$0.81

$0.060

$0.77

$0.70

$0.040

+3%

+5%

$0.60

$0.020

$0.50

$0

Jan 2013

Apr 2013


$0.052

$0.048

Jan 2013

Apr 2013

Demand has increased 3X for Interstitials compared to banners, as performance app-install spend grows New demand partners have “discovered” interstitial formats and have started to bid them up substantially just in the last three months Bid Depth

Win Rate

1.25

30%

1.33

29%

1.00

24%

0.75 0.50

18%

0.79

0.50

18%

12%

4X

3X

9%

0.25 0

6%

0.31

Jan 2013

0%

Apr 2013 Banner


Interstitial

7%

Jan 2013

Apr 2013

Android still has a 30% discount in pricing compared to iOS, but Bid Depth increased nearly 2X Android’s eCPM stayed flat despite increased bid depth; previously unpurchased Android inventory is now clearing through RTB as Win Rate increased from 8% to 22% eCPM

Bid Depth

$1.00

1.25 $0.95

1.00

-30%

$0.80

$0.84

0.83

0.75 $0.60

$0.62

0.87

$0.62

0.50

0.54 0.46

$0.40

$0.20

0.25

Jan 2013

0

Apr 2013 iOS


Android

Jan 2013

Apr 2013

iPad showed better resiliency in Bid Depth and Win Rate through the traditionally soft Q1 period Bid depth for iPhone grew 77% compared to growth on the iPad of 33%, but ended up comparable Bid Depth

Win Rate

1.25

30% 1.10

1.00 0.75 0.50

27%

1.05

0.84

15%

0.62

8%

Jan 2013

0%

Apr 2013 iPad


18%

12%

0.25 0

25%

23%

iPhone

Jan 2013

Apr 2013

iOS6 Adoption is nearly complete with over 90% of iOS MAUs using a 6.0 version or later Unique iOS6 Devices seen on MoPub Marketplace from Nov 2012 - Apr 2013 95%

300M

88%

240M 222M 201M

81%

180M

162M

74%

120M 115M

67%

60%

80M

60M

62M

Nov 2012

Dec 2012

Jan 2013

% iOS Devices using iOS6 MoPub Proprietary Data. For more information contact [email protected] Wednesday, May 8, 13

Feb 2013

Mar 2013

Apr 2013

iOS6 Monthly Active Users (MAUs)

0M

iPad becoming an increasing share of total iOS footprint, continuing strong growth even after “iPad Christmas” Unique iOS6 Devices seen on MoPub Marketplace from Nov 2012 - Apr 2013 300M

240M

60M 49M 41M

180M 33M

120M 23M 18M

60M

0M

Nov 2012

Dec 2012

Jan 2013

MAU (iPhone + iPod) MoPub Proprietary Data. For more information contact [email protected] Wednesday, May 8, 13

Feb 2013

Mar 2013

MAU (iPad)

Apr 2013

Three core themes are driving consumer and advertiser interest in mobile

• Consumers are rapidly adopting smartphone and tablets for Internet access outside of the workplace • Mobile apps are an increasing share of time spent on mobile, as they provide the best experience for consumers and marketers alike • Advertisers are adopting programmatic buying mobile faster than they did in desktop MoPub Proprietary Data. For more information contact [email protected] Wednesday, May 8, 13

How to Read the MoPub Marketplace Monthly Insights Report The MoPub Marketplace Monthly Insights Report provides market data and insights on the trends of programmatic buying in mobile advertising. Out conclusions and measurements are based on all of the auctions that we have conducted from October 2011 to present.

Auctions / Month - 2012-13

50B

MoPub Marketplace is a real-time bidding exchange for mobile ads, where advertisers and their 65+ demand-side partner bidder platforms can bid on 1.5B ad requests every day. Questions, comments, or data inquiries about this report can be sent to [email protected].

40B

RTB Glossary - a definition of key terms used in this report:

•

Bid Depth. The total number of bids received divided by the number of auctions conducted. This provides a rough measure of overall demand for inventory.

• • •

30B

Competitive Factor. The average number of bids received for all auctions with a winning bid. Bid Average. The average of all submitted bids across all auctions. Win Rate. The percentage of auctions that had a winning bid that exceeded the publisher’s

20B

floor price. These auctions are referred to as “won auctions.”

• •

eCPM. The average clearing price of all won auctions (all auctions are bid on a CPM basis). eCPC. The implied CPC on the MoPub exchange, calculated by dividing the total auction revenue generated by the number of clicks tracked on those purchased impressions.

•

10B

Banner. We consider 320x50 and 768x90 to be banner formats. We typically do not include 300x250 in computations as it can be used in a modal or modeless context.

•

Interstitial. We consider 320x480 and 1024x768, in both orientations, to be interstitial, or “modal” formats.


0B

Jan

Feb

Mar

Apr May Jun

Jul

Aug Sep

Oct

Nov Dec

Jan

Feb

Mar

Questions about the Report? Contact: Natalie Sandoval, [email protected]

Wednesday, May 8, 13