Pubmatic released its quarterly mobile index and it was filled with good news for the mobile advertising industry. That good news was mostly for large, premium publishers but it’s good news nonetheless.
The retail and technology sectors had very strong performance within Q4, with the latter clocking a 285% increase in private marketplace (PMP) volume between the start of the quarter and Black Friday. Many of the increases did come in the form of PMP buying, which heavily favors very large sites and apps; you need a critical mass of inventory in order to create a private marketplace.
Large publishers and large exchanges have made a concerted effort over the past year to eliminate low quality inventory and Pubmatic cites that effort as one of the big factors driving PMP growth. Pubmatic still sees mobile CPMs that are higher than desktop CPMs, though both are growing at a strong 36% clip year over year.
One of the biggest takeaways was the strong performance they are seeing from Android apps. Android ads have traditionally under-performed other ad types, particularly iOS ads. Pubmatic found that Android ads had larger increases in both CPM price and inventory volume than any other ad type. Android ads are finally catching up.
In general, events with a large impact on the general population drive higher ad sales, particularly on exchanges. That being the case, we should all be in for a very good 2016. The industry is already gearing up for normal first quarter events like the Super Bowl, March Madness and holidays like Valentine’s Day.
In addition to annual events, this year will have the summer Olympics and a presidential election that will likely contain more ad spending than any other in history. That’s debatably bad news for the average American but great news for those in the ad industry. For app developers specifically, the rise of Android ads and the strong mobile CPMs are fantastic news and 2016 will be filled with opportunities for developers monetizing with ads.