MoPub’s report on its mobile ad market emphasizes the fact that advertisers made “significant improvements to ad spend optimization and to refine opportunistic tactics” in the quarter, the result being “exponential payoff for this effort.”
MoPub is representing over 230 “tier 1 brand advertisers,” including 58 of the 100 top advertisers in the United States. Instead of buying ad inventory or selling advertising, this firm is reporting “market data from real-time bidding auctions for mobile ad impressions.”
As stated above, according MoPub, in the first quarter, mobile advertising outpaced the previous holiday season quarter, but the way advertisers are spending their money is in favor to Apple’s iOS at the expense of Google’s Android. At this moment, while Android devices continue to sell in large quantities Apple claims a 75 percent ad spend share of the leading ad server marketplace.
Regarding the trends reviled in MoPub’ s report, the monthly ad share grew 12.4 percent for Apple’s iPhone in the quarter, and now accounts for more than half of all ad spend in its marketplace. That is more than twice the share claimed by Android smartphones. In addition, the report says that Android accounted for less than 1.0% of ad spend, the tablets failing to gain traction.
Apple’s platform has been outperforming Android, not only because millions of Apple’s users are connected to an iTunes or App Store account with a credit card, but also thanks to the ads that do more than just display a banner for users to click on.
In 2010, when Apple released iAd, the company began improving the mobile ad experience. iAd uses HTML5 content that runs in a special security context. It was built not only to constrain malware, but also to prevent the inadvertent opening of unanticipated vulnerabilities that has plagued interactive middleware such as Adobe Flash or Microsoft Silverlight.
The launch of iAd was seen as an attempt to develop an engaging ad experience that was not annoying to users, and might instead be inviting, useful or even entertaining. It was not designed to earn lots of money but to improve users’ experience and help developers fund the development of new apps. At the release of iAd, Apple’s App Store had 185,000 apps. Today, the iOS platform has more than 775,000.
Although competitors tried to make iAd seem ridiculous, Apple has maintained its position as the third largest mobile ad network, despite being exclusive to iOS.