Insights from PubMatic’s Q3 2016 Quarterly Mobile Index

After analyzing the data behind the billions of impressions that flow through PubMatic’s SEVEN platform on a daily basis, we’ve seen four key trends emerge that demonstrate the power of programmatic for mobile advertising. PubMatic’s Q3 2016 Quarterly Mobile Index (QMI), released today, shows that publishers are seeing tremendous results in mobile performance and efficiency.

The two most significant findings from our Q3 2016 QMI boil down simply to ‘private marketplace’ and ‘header bidding.’ Basically, we’re seeing mobile rapidly adopt strategies and tactics for programmatic buying and selling at a faster pace than display has executed on.

Through our analysis we found that mobile private marketplace inventory is valued nearly 200 percent more than the mobile average. Given the benefits of mobile private marketplaces—specifically, the ability to serve ads in environments that provide transparency, help limit fraud and promote accountability—this growth demonstrates the continued shift of brand dollars to programmatic as brands become more comfortable with this channel. Going a step further and looking at the IAB publisher categories that saw the most growth in mobile web eCPM (Entertainment & Leisure, Real Estate, Sports & Automotive, etc.), it’s clear that publishers in the Lifestyle category should make premium mobile inventory available to buyers via PMP.

Our report also demonstrates that publishers around the globe are adopting header bidding strategies for their mobile web inventory as the result of the significant lift generated when all sales channels are able to compete at the impression level. While mobile web header bidding impressions were just emerging one year ago, PubMatic found that mobile web accounted for nearly one-in-five impressions transacted via header bidding in Q3 2016.

Header bidding impressions create more opportunities for advertisers to win an auction for the highly-coveted mobile consumer. Not only does this tactic generate higher eCPMs due to demand, but valuable cookie information gets passed that will allow buyers to make better decisions as well. Now that header bidding is table stakes for desktop and mobile web, the next frontier will include bringing header bidding beyond the header and into mobile apps. This will ultimately provide increased opportunities for growth.

Furthermore, during the Q3 Back-to-School season, retail publishers saw more than 230 percent increase in mobile web eCPM value. Shoppers are spending more of their time researching products and making purchased on their mobile devices, providing further opportunities for effective and engaging mobile advertising. This is particularly important heading into the retail-obsessed holiday season, during which publishers in the retail category should ensure that they are making their higher-quality mobile inventory accessible to advertisers targeting mobile consumers.

Although mobile app inventory share increased worldwide, mobile web monetization continued to provide the largest opportunity for premium publishers. PubMatic data shows that mobile web eCPMs grew twice as fast as mobile app eCPMs between Q3 2015 and Q3 2016, with a growth rate of 32 percent versus 16 percent for mobile apps. Advertisers and publishers need to balance mobile strategy to leverage the growing popularity of apps and monetization opportunity with mobile web. Partnering with programmatic experts can help achieve this goal.

We’ve summarized the key findings from our latest Quarterly Mobile Index in the infographic below, and you can download the full report by clicking here. Be sure to check back in a few months for our Q4 2016 Quarterly Mobile Index as well.

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March Madness: The Number One Seed in Ad Spend

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As March Madness tips off this week, the first round teams lace up to step on the court, and employees in offices across the country prepare their brackets, we are reminded of the marketing power behind mega sporting events and why it’s important to begin thinking about them as immense marketing opportunities.

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3 Topics We’re Excited to Discuss at Mobile World Congress Next Week

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We are thrilled to return to Barcelona next week for Mobile World Congress, where PubMatic’s global mobile experts will be eager to discuss the top-of-mind issues for leaders in publishing, media and advertising today.

As we prepare for the conference, we wanted to share a brief preview of the top three focus areas we’re looking forward to discussing with attendees: effective monetization strategies for publishers, inspiring media buyer confidence and global mobile growth opportunities. Read more about these trends below, and we look forward to meeting with you at the conference to talk further.

To schedule a meeting with someone on our team, click here or visit our booth at Hall 8.1 – App Planet Stand 8.1E61.

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2015’s Momentous Mobile Milestones

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By Evan Krauss, VP, Publisher Development

As we reflect on the changes and trends from 2015, it’s clear that it has been a transformative year for the media industry. In addition to the rise in private marketplaces and video capabilities, maturity in mobile took center stage. 2015 saw significant strides for the smartphones and mobile devices we carry everywhere, with U.S. adults spending an average of 2 hours and 54 minutes per day on these devices, according to eMarketer. As we enter 2016, we outlined three major developments from last year that indicate mobile’s continued ascension toward consumer and media dominance:

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Three Reasons Publishers Need an Ad Server Ready for a Mobile & Programmatic World

Mobile ImageBy Tim Cronin, Senior Director, Ad Serving at PubMatic

We have been catapulted into the era of mobile and programmatic. A recent study by Pew Research found that 39 of the top 50 U.S.-based news sites now see more visitors engaging with their site’s content on mobile devices than on the desktop. Mobile is also projected to account for 72% of U.S. Digital Ad Spend by 2019. And when it comes to programmatic spend specifically, eMarketer projects that mobile will surpass desktop as early as this year, accounting for 56.2% of all programmatic ad expenditures.

The challenge for publishers is clear: adapt your content and monetization strategy to take full advantage of a mobile and programmatic world. For many publishers, this shift will require rethinking a lot of what they have been taking for granted for the past decade – including their technology infrastructure.

One of the key pieces of infrastructure that needs to be reconsidered is the ad server. A mobile-first world calls for an ad server that was built for the unique challenges and opportunities that mobile offers publishers. A mobile-first world that is also shifting to programmatic requires an ad server that helps publishers effectively manage the massive amount of ad spend that is coming from their direct sold and programmatic campaigns. It’s an enormous opportunity for publishers and therefore getting it right will be crucial.

Here are three ways publishers benefit from using a mobile optimized ad server:

1) Geo-fencing – By now everyone understands that a significant part of the value of mobile is the ability to target consumers based on location. The ability to do this as precisely as possible is a critical differentiator. Indeed, PubMatic’s research into monetizing mobile impressions demonstrated that publishers that offer this data can see a 600% jump in mobile eCPMs. Mobile ad servers with geo-fencing capabilities can effectively target consumers who are in a specific location, whether that location is a coffee shop, the World Cup Final or the middle of Times Square.

2) Rich Media, Native, and your SDK – In a mobile first world, every publisher needs the ability – in both its mobile application inventory and mobile web inventory – to deliver everything from rich media to native units. Consumers and advertisers now expect a full rich media experience on their mobile devices. An ad server that is able to standardize rich media across ad units is able to meet the expectation of a more dynamic and interactive experience on smartphones and other mobile devices.

3) Advanced Server Integrations –The mobile world has been quicker to adopt server-to-server integrations than the desktop world. This creates a much more efficient and less error-prone environment. This is especially crucial in the complex mobile environment with so many different types of devices.

At PubMatic we offer publishers an ad server that is designed to meet the challenges of a mobile-first programmatic world. Last week, we celebrated the one-year anniversary of PubMatic’s acquisition of Mocean Mobile, an enterprise grade ad server and mobile monetization platform. PubMatic now offers an end-to-end solution for managing and monetizing publishers direct sold, programmatic, and third-party campaigns. Our comprehensive solution allows publishers to maximize their revenue, improve operational efficiency and “future-proof” their advertising business.

Learn more about our mobile solutions for publishers here.