It's not exactly breaking news that in-app advertising is more popular than ever. In the US alone, annual digital ad spending has hit $100 billion for the first time. Mobile advertising accounts for 65% of that figure.1 That's great news for publishers looking to improve their app monetization strategies. However, beyond that big-picture trend, there are a few other app monetization trends publishers should be aware of.
Rewarded video is one of the best-liked ad formats by advertisers, app publishers, and the viewers watching the ad. This format gives users the opportunity to opt into viewing a short video advertisement. In exchange for viewing the ad, users receive some sort of in-app reward, such as extra in-game currency or lives.
Just how popular has rewarded video become? Smaato's Global Trends in Mobile Advertising H2 2018 report found that rewarded video ad spending grew by 139% — triple the growth of other video ad formats — compared to the previous year.
At Smaato, we're committed to creating the technology that makes our customers successful. Behind that commitment is a team of more than 240 Smaaties from around the world and across different disciplines. With so many people committed to driving innovation, it's essential to provide our team with not just a place to work, but a place that inspires creativity and collaboration. We also wanted to create a welcoming space to host events for the community. That's precisely why we created the new Smaato Innovation Lab.
MWC 2019 in Barcelona is at an end, but the hottest topics from the show will be talked about for a long time to come. Our team was on the ground in Barcelona to meet with partners, as well as discuss the future of mobile advertising with visitors to our booth. The conversations we had varied, but there were a few common topics that we heard repeated throughout the four-day event. Here’s what some of our team members had to say:
Mobile advertising has never been more popular than it is today. Global mobile ad spending will hit $230 billion this year with a growth rate of more than 20%.1 But as brands continue to shift their spending to mobile, fraudsters are trying to take advantage of this ecosystem. At Smaato, our top priority is to protect both mobile users and mobile investments, but we also want to help educate the market on the various types of fraud and how to fight it.
Mobile ad fraud is a scam committed by criminals that affects the entire supply chain: publishers, advertisers, and everyone in between. The methods used by fraudsters are increasingly sophisticated, as mobile ad fraud is conducted with the goal of evading detection to steal as much money as possible. The cost of ad fraud across all types of digital advertising totaled an estimated $19 billion in 2018.2
The mobile advertising industry is constantly evolving. For advertisers and publishers, it's important to stay aware of the latest trends and topics that are affecting the industry. To help keep you updated, we've compiled insights from our team of in-app experts on a variety of important topics in the world of mobile advertising.
In-app advertising has never been more popular. Advertisers appreciate the targeted traffic that makes their campaigns effective, while app publishers value the fact that they can grow an audience and monetize without charging a premium price. But there is a downside to the massive growth of in-app advertising. Fraudsters are incentivized to try gaming the system with invalid traffic.
When it comes to targeting, everyone in the mobile advertising business knows the benefits of location targeting. The ability to reach people in specific areas, whether it's as broad as a state or as specific as a sports stadium, is crucial to the success of many campaigns. A much less utilized, but also an invaluable form of targeting, is language targeting.
2018 was a landmark year for digital advertising, as it was the first time that digital ad spending exceeded TV ad spending. Video advertising was a significant reason why the industry achieved this milestone. With users spending more time streaming content on mobile devices, brands are shifting their advertising dollars away from TV to reach users on their mobile phones. It's looking like 2019 will be another big year for video advertising. With that in mind, here are a few major trends to look out for this year.
Out of all the fast-growing countries, none have the advantages that China does when it comes to mobile advertising or increasing app monetization. Advertisers and app publishers from around the world are looking to China to unlock new levels of growth.
It's for good reason that China has become so desirable in the mobile world, as no country offers such favorable numbers in this category.