This document summarizes key insights from InMobi about the state of app monetization in Q3 of 2014. Some of the main findings include: - Tablet ads outperformed smartphone ads, yielding higher eCPMs and CTRs, especially on iOS devices. - Game, automotive, and dining ads generated the highest eCPMs for developers. - Rich media ads earned developers the highest eCPMs, while new formats like native and video ads showed promise. - Ads served early in the week or in the evening hours on weekdays performed best.

1. State of App Monetization

2. INMOBI INSIGHTS
!
THE STATE OF
APP MONETIZATION, Q3 - 2014
!
NOVEMBER 2014

3. TABLE OF CONTENTS
1 Key Insights
2 Network Landscape
3 Ad Categories
4 Ad Formats
5 Most Lucrative Times
6 Key Takeaways
7 About Our Research

4. KEY INSIGHTS
• Ads on tablet apps yield higher eCPMs compared to
smartphones. iOS performs better than Android across
smartphones and tablets
• Game ads yield the highest CTRs; QSR & dining, Automotive
and Telecom ads earn app developers the highest eCPMs
• Rich media ads currently earn app developers the highest
eCPMs; new ad formats, such as native, video & playable
ads, are also gaining traction and yielding positive results
• In-app ads served at the beginning of week or during
evening hours yield the highest eCPMs for app developers

5. NETWORK LANDSCAPE

6. REACHING
872 M
monthly uniques
138
BILLION
Monthly
Ad Impressions
!
4.8
BILLION
Ad Requests/Day
!
200 +
Countries

7. 32% INCREASE
In-App Ad Impressions Increased Globally
by 32% from 2014 Q2 to 2014 Q3

8. SMARTPHONE vs. TABLET
% Impressions
CTR eCPM
85 92 95
15 143 128
Smartphone
Tablet
In-app tablet ads
experienced CTRs
55% higher than in-app
smartphone
ads and earned
eCPMs 35% higher
than their smaller
counterparts
Index is calculated against the 2014 Q3 global device average;
% difference calculated against absolute numbers

9. Android Devices vs. iOS Devices
CTR eCPM
89 82
120 87
Smartphone
Tablet
CTR eCPM
Android tablet ads recorded 23% higher CTRs but 25% lower eCPMs compared to
in-app iOS smartphone ads. Similarly, Android tablet ads experienced 35% higher CTRs
but only 5% higher eCPMS compared to in-app Android smartphone ads. This may be
in-part attributed to the common belief that iOS users spend more for apps and in-apps
than Android users
Index is calculated against the 2014 Q3 global device average;
% difference calculated against absolute numbers
98 116
159 156
Smartphone
Tablet

10. AD CATEGORIES

11. ==
1 Games
2 Entertainment
3 Retail 1
4 Social & Communications -1
5 Business 1
6 Consumer Electronics Tech -1
7 Telecom 1
8 Lifestyle 3
9 Travel
10 Finance
=
11 Automotive 1
12 QSR & Dining 1
13 Sports -6
14 Education 1
15 Health & Fitness 1
2014 Q3 TOP 15
AD CATEGORIES,
BY IMPRESSIONS
Note: Rank change calculated against 2014 Q2
=

12. 2014 Q3 Top 5 Ad
Categories, by CTR
Game ads yielded the
highest overall CTRs of
any ad category; game
ads, social &
communication ads,
and health and fitness
ads all over-indexed
during both 2014 Q2
and 2014 Q3
113 Games
!
112 Social & Communication
!
108 Health & Fitness
!
106 Travel
!
92 Consumer Electronics
!
Index is calculated against the Q3 global average;
non-conventional categories not depicted in results

13. Indexed eCPM, Top 10 Ad Categories by Impressions
Telecom
Travel
Finance
Lifestyle
Consumer Electronics
Games
Social & Communications
Entertainment
Retail
Business 68
79
77
87
98
120
113
165
182
231
Index is calculated against the Q3 global average;
non-conventional categories not depicted in results

14. AD FORMATS
(Rich Media, Standard Banner & Text)

15. Interstitial Ads Over-Index at
More Than 7x the Average
eCPM
761
424
219
109
73
Interstitial
Expandable
Rich Banner
Standard
Banner
Text Ads
eCPM
Index is calculated against the 2014 Q3 global average

16. Rich Media Ads Out-Perform Standard
Ad Formats in Asia
Asia Pacific Europe North
America
864 902 634
315 649 447
159 424 432
84 153 141
57 95 108
Interstitial
Expandable
Rich Banner
Standard
Banner
Text Ads
While apps generally earn lower eCPMs in Asian than in other
countries; however; eCPMs for interstitial ads in Asia are higher
than those in the US and comparable to those in Europe
Index is calculated against the 2014 Q3 global average

17. New & Emerging Ad Formats
Native ads
Native ads are less intrusive than
standard banner or skyscraper
ads. On mobile, native ads are
integrated wholly and seamlessly
into the app experience and
often mimic app content
Rewarded ads
Rewarded ads, particularly
rewarded video ads have
recently proven successful.
Users opt-in to watch the video
in exchange for a tangible
benefit within the app, e.g.
premium currency in game apps
Playable ads
Playable ads are ad units in
which users can experience the
actual gameplay of advertisers’
apps. They allows advertisers to
create a virtual versions of their
apps that users can play without
having to download the apps.
App Gallery
A type of native ad, an app
gallery is the evolution of a tool
that some developers have used
to cross-promote their own
apps. App galleries can be
supported in an interstitial or a
less obvious “more apps” button,
and it allows developers to also
feature other publishers’ apps

18. MOST LUCRATIVE
TIMES

19. Impressions Peak at the Beginning of the week but
eCPMs peak on Thursday and Friday
In the US, apps accrued the most ad impressions on Mondays and Tuesdays, but ads
experienced higher CTRs and yielded higher eCPMs on Thursdays and Fridays
120
108
95
83
Impressions CTR eCPM
Sunday Monday Tuesday Wednesday Thursday Friday Saturday
Index
Note: US Apps only, calculated PST

20. 100% eCPM Spike at 4 PM PST (7 PM EST)
Ad impressions remain relatively consistent throughout the day and spike around 4 PM PST
(7 PM EST); CTRs are highest around 3 - 4 AM PST (6 - 7 AM EST). eCPMs are highest around
4 PM PST (7 PM EST) - this is likely due to an increase in brand advertiser spend and higher
170
135
100
65
performance CPCs targeted to consumers after work/ class
Impressions CTR eCPM
12 AM PST NOON 11 PM PST
Index
Note: US Apps only, calculated PST

21. Want More?
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We think you might also be interested in:
The State of App Monetization - Q2, 2014

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