App developers outperform the market

5 September 2014

BOSTON: App developers that use the Nexage mobile ad marketplace have experienced 165% revenue growth in 2014, or double the current rate of growth for mobile advertising, the company has announced.

According to its latest Mobile Insights Report, Nexage said this revenue growth was driven by a combination of price and volume gains which involved eCPMs (effective cost per thousand ad impressions) increasing by 55% in 2014.

These eCPM gains were generated by more interest from brand ad buyers in advertising in apps, increased willingness from app marketers to pay more for high-value users, and increased competition for available ad space inventory. As a result, the volume of ads has grown 66% this year.

Nexage also highlighted four key drivers of growth – Device ID, or the distinctive number associated with a smartphone or similar device, location-based ads, high-impact ad formats (rich media and video ads), and brand engagement.

The eCPM for ID-enabled ad impressions commanded a 67% premium over ad impressions without device ID, Nexage said, while location-enabled impressions produced a 49% premium.

Rich media-enabled ad impressions grew 346% this year while video-enabled ad impressions grew at a rate of 516% as developers expanded their means of displaying rich media and video ads. Meanwhile, interstitial-enabled ad impressions grew 194%.

This better yield performance gives developers an opportunity to send fewer and more engaging ads, the report said, as they compete for consumer attention and loyalty.

Advertisers and agencies are adapting to a mobile-centric, app-centric world, Nexage added, where mobile adspend will soon exceed desktop and where apps account for 80% of mobile traffic.

Data sourced from Nexage; additional content by Warc staff