The State of Mobile Ads | Pavel Golubev

Casual Connect USA‘16

The State of Mobile Ads: trends and

forecasts.

About Appodeal

About Appodeal

About Appodeal

80,000,000Monthly Active Users (MAU)

About Appodeal

7,500,000,000 impressions a month

About Appodeal

13,522 apps

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 supportto in-app purchases, but low ARPDAU.

Market Overview: common trends

• Flat Waterfall Ad Mediation replaces traditional mediation waterfalls.

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

• Ad Revenue attribution per user cohort comes in sight, 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• Outdated format (for advertisers, but not for publishers)• Brand advertisers• Mostly programmatic• Good choice for long sessions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

Samsung HTC ASUS Sony / Lenovo

Prestigio0

0.33

0.65

0.98

1.3

1.63

CTR, %

Device Model CTR: Battery State

1-10% 11-20%

21-30%

31-40%

41-50%

51-60%

61-70%

71-80%

81-90%

91-100%

0

0.45

0.9

1.35

1.8

2.25

CTR, %

Device Model CTR: Connection Type

Wifi 3G0

0.33

0.65

0.98

1.3

1.63

CTR, %

Device Model CTR: Day of Week

Sun Mon Tue Wed Thu Fri Sat0

0.25

0.5

0.75

1

CTR, %

Device Model CTR: Hour of Day

0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 230

0.25

0.5

0.75

1

1.25

CTR, %

Forecast for 2017

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

• Native Ads will be adopted by publishers to improveretention 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 togrow, bringing more branding advertisers and adnetworks into the space.

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

• Traditional Waterfall model will be replaced with Flat Waterfall model.

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