Data use by publishers triples revenue in Q4 2015: Report
With the continuing shift towards mobile as the preferred device, data represents a powerful opportunity for publishers for monetising their apps. By 2020, about 90 per cent of the world’s population is expected to have a mobile phone. Publishers who used data brought in higher eCPMs for themselves in the fourth quarter of 2015, according to a new report by Smaato.
The report highlighted that ads with GPS coordinate data increase eCPMs by 162 per cent, and on average publishers who leveraged age and gender data saw eCPMs triple during Q4 2015.
Publishers who provide accurate data get paid significantly more by the advertisers. But in addition to being more valuable in the absolute, passing data is also becoming more valuable over time. While eCPMs for ad impressions without data still rose throughout 2015 (by 42 per cent), ad impressions that passed data saw eCPMs rise by a staggering 120 per cent.
In terms of the region, mobile ad spend in China is growing at a staggering pace. While the U.S. remains the most valuable ad market in the world – and it continues growing at a healthy clip – China experienced a mobile ad spend uplift of 1,246 per cent in Q4 2015.
According to Smaato’s findings, the more accurate a publisher’s location data is, the better. eCPMs based on ZIP/postal code data increased by 74 per cent, while eCPMs based on GPS coordinates increased by 162 per cent.
Publishers who are able to identify male users saw eCPMs increase by 115 per cent, and those identifying female users saw an uptick of 177 per cent.
“Data truly is the new mobile currency. It’s a win-win-win. Making use of this data maximizes revenue for publishers, it allows advertisers to reach their target audience effectively, and the end user gets a better, more relevant ad experience. Now more than ever, it pays to know who your users are,” said Ragnar Kruse, CEO and co-founder of Smaato.
Apps continue to dominate mobile websites in terms of global ad spend. In the Americas, in-app share grew from 64 per cent to 77 per cent in Q4 2015.
Android’s eCPM growth rate was much stronger than that of iOS during Q4 2015. iOS users are no longer 1.55 times more valuable than Android users, and Smaato’s data shows that Android eCPMs are projected to pull even with those of iOS as early as Q4 2016.
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