Mobile marketing statistics & growth for Q2 2014 seem upbeat and on a strong growth curve.
With 4.55 Billion people globally owning a mobile phone and of which 1.75 Billion of them being smartphones, the user base and size of the market is massive.
In 16 countries, smartphones are now in majority as compared to the old generation feature phones. 2.23 Billion of these users, ie. half of the mobile phone users, will go online on mobile in 2014. A natural fallout of this is a never before interest of marketers in targeting this audience and finding ways to engage them even better.
AppFlood released a report based on the findings of their own ad network, focusing on ad spends, traffic and key metrics surrounding mobile marketing. The mobile marketing stats for Q2 2014 is buoyant and alludes to a medium that has plenty of opportunities in store.
Mobile Advertising Spends – Q2, 2014
Mobile advertising spends grew 58.1% from Q2 2103 to Q2 2014. Presumably, much of this could be attributed to a growing app ecosystem which touched 2.5 Million this quarter. Many premium brands have also continued to engage audience to continue capturing mind share through a 360 degree presence.
Mobile Advertising Formats Growth 2014
There are several ad formats that got introduced in the last few months – many of them trying to overcome the ‘banner blindedness’ that had set in over the last few years. Of the new formats, the ones that got real traction with regards to publisher eCPM improvement and CTR are interstitial, rich media and app lists. It appears that in terms of growth, rich media ads have shown the sharpest growth followed by interstitial.
Mobile Advertising Spend Allocation 2014
As a percentage of the total ad spends, mobile advertising has remained at the bottom, but that situation seems to be steadily improving.
Although AppFlood’s study is only across select advertising, there seems to be a gradual rise. With more brands & premium advertisers investing in apps for audience engagement – there is more investment to distribute these apps, which alone is a great driver. As a consequence, ad spends per advertiser grew MoM 19.1% in the last 12 months.
Mobile Advertising Spend (By Region) Allocation 2014
Across the Middle East and Asia, advertisers invest half their budgets on mobile advertising, which is truly telling of the influence this region has on the overall ecosystem. Given the size of the market combined with the fierce growth rates in most of these developing markets, it looks inevitable for advertisers not to give half their focus in the Asia Pacific and Middle East.
Mobile Traffic Volumes Growth 2014
Owing to the sheer growth in the volumes of user base, mobile phone penetration, internet access growth and growth in available services and applications, the traffic volumes have shown stunning growths, ie. 56.5% growth over the last 12 months. There should be a huge contribution from the fast growing markets like Latin America, Asia Pacific region, Africa & the Middle East.
Here’s the region wise split – as expected, the Middle East and Asia markets contribute more than half!
Mobile Advertising eCPM 2014
eCPM is earning for each 1000 impressions served. This is the single most important metric which drives the mobile advertising industry and has a high impact on decisions made by publishers. While, there is a jump in eCPMs towards the end of Q2 2014 – the averages for the Q1 and Q2 remained stagnant. Appflood attributes the jump in eCPM to huge Chinese advertisers.
App Advertising Cost Per Install 2014
With the proliferation of app advertising, advertisers are keeping a close watch on the effective Cost Per Install, that is the average cost of getting one install. For better scalability and a faster return on investment, it is extremely critical to keep the Cost Per Install (CPI) low and sustainable. The figures from Appflood show that Q2 2014 had an average CPI of $0.29. However, this is a global average and CPI varies across geographies sharply. In the US, it could be as high as $4.00, in some countries in Asia like India or Indonesia it could be as low as $0.10 to $0.20.
The distribution of app installs globally by different regions is as follows:
AppFlood’s full report is available for download on the following .