Mobile Beach Conference ‘16

The State of Mobile Ads: trends and forecasts.

About Appodeal

About Appodeal

About Appodeal

70,000,000Monthly Active Users

(MAU)

About Appodeal

6,000,000,000 impressions a month

About Appodeal

2,500 app developers

Market Overview: Mobile first world

Market Overview: time spent in mobile

Market Overview: device preferences

Market Overview: common trends

• Interstitials and banners account for the majority of the ad revenue. Lead tolower retention rate, but will remain major formats for ad-based apps in 2017.

• Native is a good replacement for banners and will gain more advertisers.

• Rewarded Videos remain a good alternative to in-app purchases, but low ARPDAU.

Market Overview: common trends

• Auction Based Ad Mediation will continue to ramp up and be adopted by publishers.

• Hyperlocal targeting is growing.Pass device location to attract advertisers.

• Ad Revenue attribution per user cohort becomes real, just like with in-apppurchases. Leads to more accurate LTV.

Ad Formats Performance Overview

ARPDAU eCPM Retention Effect

Impressions per DAU

Interstitials 0,013 $ 5,97 $ Bad 2,28

Banners 0,009 $ 0,4 $ Bad 22,9

Rewarded Video 0,007 $ 6,76 $ Good 0,87

Native Ads 0,007 $ 1,1 $ Good 6,39

Video Interstitials 0,006 $ 4,74 $ Bad 0,2

Interstitials Overview

ARPDAU eCPM Retention Effect

Impressions per DAU

Interstitials 0,013 $ 5,97 $ Bad 2,28

• Highest ARPDAU• Brand advertisers• Mostly programmatic• Most annoying

Interstitials: Core Ad Networks

ARPDAU eCPM Competitive fill rate Ad types Geo

Admob 0,003 $ 2,22 $ 53,4 % Brands, CPI World

Mopub 0,004 $ 3,85 $ 17,08 % Brands, CPI Tier 1

StartApp 0,001 $ 0,99 $ 80 % CPI World

Facebook 0,003 $ 2,03 $ 17,59 % Brands, CPI World

MyTarget 0,002 $ 1,25 $ 36,87 % Brands, CPI Russia

Banners Overview

ARPDAU eCPM Retention Effect

Impressions per DAU

Banners 0,009 $ 0,4 $ Bad 22,9

• Outdated format (for advertisers, but not for publishers)• Brand advertisers• Mostly programmatic• Good choice for long sessions

Banners: Core Ad Networks

ARPDAU eCPM Competitive fill rate Ad types Geo

Admob 0,002 $ 0,12 $ 53,19 % Brands, CPI World

Amazon 0,003 $ 0,51 $ 7,74 % Brands, CPI US

Inneractive 0,002 $ 0,2 $ 12,97 % Brands, CPI Tier 1

Mopub 0,001 $ 0,19 $ 12,14 % Brands, CPI Tier 1

Video Interstitials Overview

ARPDAU eCPM Retention Effect

Impressions per DAU

Video Interstitials 0,006 $ 4,74 $ Bad 0,2

• Can be a good addition to interstitials

Video Interstitials: Core Ad Networks

ARPDAU eCPM Competitive fill rate Ad types Geo

Applovin 0,0013 $ 1,5 $ 75,52 % CPI World

Mopub 0,0025 $ 3,31 $ 7,27 % Brands, CPI Tier 1

Vungle 0,0011 $ 1,68 $ 42,8 % CPI Tier 1

UnityAds 0,0006 $ 1,18 $ 36,58 % CPI World

Rewarded Videos Overview

ARPDAU eCPM Retention Effect

Impressions per DAU

Rewarded Video 0,007 $ 6,76 $ Good 0,87

• Programmatic drives branding demand• Mostly CPI advertisers• Neutral effect on retention• Offers great eCPM, however ARPDAU is typically low due

to low # impressions per DAU

Rewarded Videos: Core Ad Networks

ARPDAU eCPM Competitive fill rate Ad types Geo

Applovin 0,001 $ 2,05 $ 83,36 % CPI Tier 1

UnityAds 0,001 $ 1,76 $ 61,94 % CPI World

Chartboost 0,005 $ 3,89 $ 22,16 % CPI World

Vungle 0,001 $ 1,66 $ 40,64 % CPI Tier 1

AdColony 0,0008 $ 1,3 $ 38,83 % CPI / Brands Tier 1

Mopub 0,001 $ 3,5 $ 4,54 % CPI / Brands Tier 1

Native Ads Overview

ARPDAU eCPM Retention Effect

Impressions per DAU

Native Ads 0,007 $ 1,1 $ Good 6,39

• Great alternative to banners• Programmatic is growing => Branding advertisers• Neutral effect on retention• 30% - 200% eCPM improvement compare to banners

Native Ads: Core Ad Networks

ARPDAU eCPM Competitive fill rate Ad types Geo

Facebook 0,00160 $ 0,46 $ 14,07 % CPI / Brands World

MyTarget 0,00044 $ 0,18 $ 44,72 % CPI Russia

Avocarrot 0,00058 $ 0,2 $ 9,5 % CPI / Brands Tier 1

PubNative 0,00117 $ 0,69 $ 3,49 % CPI Tier 1

Flurry 0,00119 $ 0,18 $ 9,64 % CPI / Brands Tier 1

Mopub 0,00008 $ 0,14 $ 46,2 % CPI / Brands Tier 1

StartApp 0,00009 $ 0,05 $ 74,68 % CPI World

Native Ads vs. Standard Banners

• Higher Retention Rate

• eCPM uplift:18% - 200%

Device Model CTR: Android

0

0,35

0,7

1,05

1,4

Alcatel Samsung HTC ASUS Sony / Lenovo Prestigio

CTR, %

Device Model CTR: Battery State

0

0,45

0,9

1,35

1,8

1-10% 21-30% 41-50% 61-70% 81-90%

CTR, %

Device Model CTR: Connection Type

0

0,325

0,65

0,975

1,3

Wifi 3G

CTR, %

Device Model CTR: Day of Week

0

0,25

0,5

0,75

1

Sun Mon Tue Wed Thu Fri Sat

CTR, %

Device Model CTR: Hour of Day

0

0,25

0,5

0,75

1

0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23

CTR, %

Forecast for 2017

• Interstitials will remain accountable for the majorityof mobile game ad revenues.

• Native Ads will be adopted by publishers to improve retention rate and monetize non-paying users.

• Videos will remain a good alternative to monetize non-paying users, however, its volume and ARPDAU will stay relatively low.

Forecast for 2017

• Programmatic Native and Video will continue to grow, bringing more branding advertisers and ad networks into the space.

• Ad Revenue attribution per user cohort will become available to publishers, just like IAP revenue attribution.

• Traditional Waterfall model will be replaced with Header Bidding (Flat Waterfall) model.

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