Since 2008, digital advertising changed forever with a swift from the desktop to the mobile. Lately the trend is using more applications instead the browser, so mobile advertising in applications has nowadays an unprecedented value.
This growing trend of mobile advertising has made advertisers focus on getting the best revenue of their ads in mobile applications.
Mobile Advertising Spending. What is the trend?
According to the eMarketer study, the $ 195 billion of advertising spending expected in the world in 2019 for mobile devices and tablets is expected to be more than 1,000% higher than in 2013. The figures in mobile advertising trends are to go crazy, but let’s see now another fact: this expenditure will account for 70 % of the total digital advertising investment. Wow.
Mobile advertising spending. Which countries invest more?
Here we can see how the leaders who lead the ranking, the United States and China increase their spending on mobile advertising this 2018 doubling the values of 3 years ago. Also noteworthy is that countries such as Canada or Australia that start near the middle of the table, climb positions and are now located just behind the top 5 investors in mobile advertising. The opposite happens to Spain, the values that were expected for 2018 are lower than India´s investment.
Mobile advertising metrics. Where to invest?
Another factor to take into account when investing in mobile advertising will be in which countries we´ll obtain higher returns for our investment. To understand the cost and revenues of mobile advertising we should know the metrics used to measure these advertising campaigns:
CPM: Cost per mille. It´s the cost an advertiser pays for one thousands views. This will be the metric that we will use in the following graphs.
CPC: Cost per click. The advertiser only pays if the user clicks on the ad.
CPA: Cost per action. The advertiser pays if the user performs the indicated action, which can be to register in a site, to request a subscription, or make a sale.
In these charts by adtapsy we see the CPM by countries during the last month taking AdMob as an example. This will give us an idea about in which markets are more interesting to be present with our app.
Let’s compare to understand better in this graph the 5 countries whose “clicks” generate greater benefits depending on whether the operating system chosen for mobile advertising is iOS or Android. We observe that in both iOS and Android the countries with the highest revenues are the United States, Canada and Australia, but also Norway and the United Kingdom. But the differences according to the platform are relevant, let’s look at the example of United Kingdom that has a CPM of 7.10 on iOS and 2.78 points on Android or Canada which iOS CPM is 6 , 58 and Android CPM is only 1.75.
In Spain we also see significant differences according to the platform. This graph offers the evolution of the CPM in mobile advertising in both Android and iOS platforms.
We can check how Spain does not escape the trend of other countries with a higher CRM throughout its evolution in iOS. It is seems widespread that the owner of an app has higher return when mobile advertising appears in an iOS application.
Mobile advertising: comparative growth
We observe in these data that the company specialized in ROI Zenith offers, that the trend of most of the media is growing despite the blunt in mobile advertising investment, although in general they do so on a very small scale. The growth forecast for radio and television by 2020 is a shy 1 % per year. On the other side of the coin are traditional media such as the desktop computer, newspapers and magazines in which an annual decrease in investment of around 6 % is expected.