Report: Advertisers to spend $30bn on mobile video ads in 2019
November 14, 2018
By Sanjeev Bhavnani
PubMatic, the publisher-focused sell-side platform (SSP) for an open digital media future, has released its third Quarterly Mobile Index (QMI) of 2018. The report includes key insights around the growth in mobile app advertising, highlighting trends in mobile video, header bidding and the expansion of cross-channel monetisation.
Advertisers are expected to spend more than $180 billion on mobile advertising in 2019 (eMarketer) and so it is imperative to understand where the growth is taking place to plan accordingly. PubMatic’s Q3 2018 QMI Report reveals the top three trends to watch:
- Mobile Video Reached A Milestone – Advertiser interest is driving global mobile video ad spend growth, creating incremental revenue opportunities for publishers
- Mobile Header Bidding Rises as Use Extends to Apps – After becoming mainstream on the web, header bidding is now making strides into app environments
- Back-to-School Season Boosts Mobile Ad Volume in Retail – Evolving consumer behaviour is extending advertising windows for the back-to-school shopping season, increasingly leveraging mobile as well
Mobile video is the fastest-growing video type among consumers and currently takes the greatest share of time spent. As such, advertisers are expected to spend nearly $30 billion on mobile video advertising in 2019 (Cowen and Company). For publishers hoping to take advantage of this growing opportunity, it is important to focus on high-value content and robust quality controls that will attract brand advertisers.
The report found that mobile header bidding volume nearly doubled with a 95 per cent year-over-year increase in Q3 (desktop volume up three percent). Additionally, in-app parallel bidding (header bidding equivalent) continues to gain traction, reaching 14 per cent of total mobile header bidding volume, following a fourth quarter of strong growth.
“In-app header bidding technology development is poised to continue into and throughout 2019, incorporating the benefits of server-to-server functionality to minimise the current SDK drawbacks,” said Mike Chowla, Director of Product Management at PubMatic. “Publishers who keep up with the evolution of in-app header bidding will stand to tap into a fast-growing revenue stream over the next 18 months.”
In planning for 2019, advertisers should also be aware that the back-to-school season drove triple-digit growth in retail mobile ad volume. Retail publishers saw a 142 per cent increase in monetised mobile impression volume worldwide in Q3 2018. Moreover, retail publisher impressions monetised through apps increased 62 times year-over-year to take a 41 per cent share of mobile volume enabled by PubMatic this year. Advertisers interested in capturing more consumers should take note of these trends when delivering relevant, timely messaging to a new generation of shoppers during peak purchasing periods throughout the year.