Android increases mobile-ad market share, mobile video on the rise
Opera Mediaworks’ State of Mobile Advertising report reveals top trends for the third quarter of 2014
Android continues to close the gap with iOS in mobile advertising revenue, while its share of impressions is now almost double that of iOS, according to the Opera Mediaworks’ State of Mobile Advertising report, released today.
Earlier this year, Android overtook iOS in impression volume. The gap widened further in the third quarter of 2014, with Android devices capturing 58% of impressions vs. iOS at 30%.
In monetization terms, Google’s mobile OS gained three percentage points, compared to Q2, reaching nearly 42% of revenue in Q3. Apple still commands higher revenue at 51%, but it is lower than Q2, when it was at 53%.
Mobile video on the rise
For the first time, 1 in 10 mobile ads delivered in the United States are video. In addition, video eCPMs (effective cost per thousand impressions) were eight times higher than banner ads and two times higher than rich-media ads. The data comes from Opera Mediaworks’ most recent acquisition, the mobile-video ad platform, AdColony.
"We're seeing brands continue to embrace the power of sight, sound and motion by investing in mobile video advertising as a key component of their marketing strategies," says Will Kassoy, CMO and CEO of Opera Mediaworks and AdColony, respectively.
"Mobile video is clearly a big catalyst for the industry, fueled by higher production value content -- especially in native apps -- together with an insatiable demand from consumers for video experiences. At Opera Mediaworks, we are pleased to see this momentous shift in the app ecosystem and are well positioned to capitalize on these market trends."
Additional highlights from the report:
Mobile video is showing rapid, unadulterated growth
- In 2014, mobile video impressions grew 3.5 times, and mobile video continues to be the fastest growing category in mobile advertising.
- Overall, brand spending on in-app HD mobile video ads has increased by 36% from the previous quarter.
- Advertisers running video-ad campaigns on apps in the Shopping, Sports, Social and Health & Fitness categories saw the highest video completion rates, with percentages from the upper 80s into the high 90s.
- Shorter-form video formats are becoming more popular, with more than half of video ads served in the range of less than 20 seconds.
- Entertainment brands are employing mobile video ads most often, with 22% of impressions coming from their campaigns.
iOS 8 adoption slower than iOS 7
- One week after the release of iOS 8, it accounted for just under 29% of impressions served to Apple devices. The same metric for iOS 7 is far greater: one week after its 2013 release, the adoption rate was more than double (65%).
Breakout quarter for the Americas
- Though the United States is still the leader, with 44% of impressions and 58% of revenue, the non-U.S. Americas (Canada, Latin America and the Caribbean) have nearly doubled their share of impressions in the last quarter and now account for nearly 1 in 10 mobile ad impressions, globally.
- Mexico and Argentina are the biggest drivers of that growth.
- Revenue for the Americas is also strong, at 10% share of the total.
- Asia, on the other hand, still struggles with monetization. The region is in second place for impressions, at 27%, but monetization, at 8%, still lags well behind Europe, with 17%.
Social still No. 1
Social Networking is still the most popular category in mobile advertising, accounting for about 1 in 5 ad impressions. At the same time, Music, Video and Media sites and apps drive the most revenue, with 23%.
View the full report at http://operamediaworks.com/insights/sma_Q3_2014.html.
About Opera Mediaworks
Opera Mediaworks is the first mobile ad platform for brands, delivering surprise and delight at scale. Our technology powers the biggest publishers in the world and enables marketers to provide the highest quality experiences to more people in more places when it matters most. Our exclusive Instant-PlayTM HD video technology and award- winning rich media touches, engages and creates deep interaction with consumers in the most popular mobile apps and sites around the globe. We work with over 90% of the AdAge Top 100 advertisers and 18 of the top 25 global publishers. A fully-owned subsidiary of Opera Software, Opera Mediaworks is headquartered in San Mateo, California, with offices worldwide. To learn more, visit www.operamediaworks.com.
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