This past year has been all about consumer empowerment. Internet users are advocating for more control over the use of their personal data, and regulations are being put in place to give them just that. It was one year ago that the General Data Protection Regulation (GDPR) went into effect, requiring data collectors to clearly inform users on how their data is collected, used, and shared. Most importantly, this regulation requires data collectors to obtain a clear opt-in from consumers to share data. Now, one year after the initial implementation, we are taking a look at the GDPR has changed the mobile advertising industry.
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.
There’s no contesting that the in-app advertising industry is huge — but with great size comes great complexity. In Q1 2019, there were 30 billion app downloads worldwide.1 Considering that over 90% of apps are free to consumers,2 publishers are relying heavily — and sometimes solely — on advertising to monetize their app. Mobile programmatic ad spending in the US grew 45% from 2017 to 2018, and it is expected to grow a further 23% in 2019 to reach an impressive $55 billion.3
Alongside this monetary growth, the number of players and the complexities of their technology has also increased. The ad tech world today is full of acronyms and industry-specific lingo that can confuse even the most seasoned ad tech veterans. This post will examine the roles that ad networks and supply-side platforms (SSPs) play in the programmatic supply chain and what differentiates them from each other.
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.
With time spent in-app doubling globally over the last three years, advertisers are moving their focus and budgets towards mobile advertising.1 Mobile ad spending in the US reached $71 billion in 2018, and the number of ad requests on the Smaato platform grew 27% from H2 2017 to H2 2018.2
Senior Recruiting Manager EMEA
Meet Madlin Sattler, our Senior Recruiting Manager for the EMEA region here at Smaato. Working out of our Hamburg office, Madlin is responsible for sourcing, interviewing, and hiring amazing new Smaaties for our talented team. Madlin came to Smaato in 2016 after working at a recruiting agency in London for over two years. She was attracted to Smaato for its fast-paced environment and international team — and today, she gets to help Smaato grow this team by identifying and hiring qualified candidates that will advance the company’s mission to keep apps free.
Even apps with a very successful monetization strategy can find ways to improve their revenues. As an Account Manager at Smaato, I'm working closely with app publishers using the Smaato Publisher Platform (SPX) every day to help them improve ad revenues and optimize their existing revenue. I often dive deep into the data to find opportunities for the publishers that can help them reach their monetization goals. While there are some best practices that only apply to specific apps, I wanted to share some tips that every publisher using SPX can implement today.
The always-on mobile device travels with us everywhere we go, making it closely connected to our personal lives and daily habits. The ability to make use of mobile location data provides advertisers the unprecedented ability to deliver highly relevant messages to consumers wherever they may be — and this data is something for which advertisers are willing to pay a premium. On the Smaato platform, apps that pass location data can have 70% higher eCPMs and 50% higher fill rates than the overall average.
Smaato is committed to creating a protected mobile marketplace, where both publishers and advertisers are safe from external threats. To achieve this, we deploy a multi-faceted strategy that includes employing an in-house team of experts, partnering with leading tech partners, and fostering transparent discussions about the risks of fraud. Beyond those measures, it's essential to take significant steps to combat fraud. To that end, Smaato is now the first in-app advertising exchange to receive the Certified Against Fraud seal from the Trustworthy Accountability Group (TAG).
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.