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Mobile advertising soars in developing countries: Study

There has been a massive growth in mobile ad impressions in the third quarter in Asia Pacific and Latin America, according to the latest trends report by Smaato on mobile programmatic. With Venezuela and Indonesia growing by 91 and 84 per cent in the third quarter, respectively, these regions represent the next frontier of mobile advertising for publishers and advertisers alike.

While the strongest regions on the Smaato platform remain those with highly-developed mobile, advertising and commerce infrastructures (i.e., the United States, United Kingdom and Germany) and those with large populations and a mobile-first mentality (i.e., India and Russia), Latin America and Asia Pacific are new to the list of leading regions. This comes as a result of rapidly developing mobile networks and a proliferation of smartphones, which have combined to create a wealth of opportunities for mobile publishers and advertisers on the Smaato platform.

“As the world gets more connected, it’s never been more crucial to go global with your mobile advertising strategy. India, with its massive, mobile-first population, has long been considered the ‘next big market.’ While India remains a growing powerhouse, our data also shows that countries like Indonesia and Brazil are up-and-coming markets in Latin America and Asia Pacific – and offer incredible opportunities for publishers to monetize, and for advertisers to connect with consumers,” said Ragnar Kruse, CEO and co-founder of Smaato.

Meanwhile, Smaato found that a subtle year-over-year shift in Q3 away from the mobile web in favour of apps. This shift could come as a result of publishers directing users to apps to avoid ad-blocking software, which is primarily a mobile web issue. Smaato’s exchange saw a six per cent positive shift in favour of apps in both supply (publisher inventory) and spend (advertisers’ spending on the Smaato exchange) during the third quarter of 2015, relative to the mobile web.

The report also highlights that the operating system with strongest growth continues to be Android, with supply and spending soaring by a whopping 67 per cent during the third quarter of 2015 from the year before.

Larger ad formats result in higher eCPM. While traditional banners (320×50) are still growing, their rate of growth is dropping in favor of larger sizes like the medium rectangle (300×250) – up 85 per cent – and the interstitial ad (320×480) – which grew 77 per cent.

Rich media continues to generate higher and higher revenues for publishers and app developers – now generating 116 per cent higher revenues than image-based ads.

Shubhi Tandon

Shubhi Tandon is the Assistant Editor at Digital Market Asia. Fascinated by the evolving digital media industry, she has focussed on tracking developments in the Asia Pacific market since 2014.