According to the latest Android Ad Insights report by the cross-promotion platform for trading mobile traffic, AppFlood, for Q3 2013, the revenue generated from mobile advertising increased 332% between March 2013 and October 2013. Thus indicating the high marketing and revenue potential in mobile advertising.
Who is monetising the most from Mobile Advertising?
The earnings from advertising on Android apps, is mainly being acquired by the ‘non-western’ regions, which include countries in APAC, Middle East and Africa. Asia was 3 percentage points below North America’s global share of revenue.
Even though the Eastern region dominates the total revenue earned, according to the report, USA is the country with highest mobile ad earnings in Q3 2013, followed by India. Also, the company cites that ‘Mobile users from emerging regions are becoming serious contenders for sources of mobile ad revenue.’
Who is spending the most on Mobile Advertising?
As per the findings of the research done by the company, there has been a sudden shift in advertising trends in Q3, from United States being the leading developer of mobile ads, now several Eastern companies are emerging into the scene, maximum being in China.
As a result, the Chinese tech companies, namely Tencent, Xiaomi, Alibaba, and Baidu, are actively investing in mobile ad development to stay ahead. Chinese advertisers spent 151% more on their mobile advertising campaigns between March and September.
The release further says that the “Chinese tech giants invested the largest chunk of their budget into acquiring Asian users(outside China) – as much as 33% of the total budget. Outside of Asia, as much as 22% of China’s total spend went into the Middle East. Western regions on the other hand including North America and Western Europe accounted for just half of China’s total spend on Asia.”
What does this mean for developers and companies in other countries?
Considering that Chinese developers are actively investing huge sums of money to expand their consumer base beyond their own country, the ad developers and publishers in other Asian countries are facing a stiff competition for the same.
In most of the cases the revenues and customers, the companies targeting mobile users in Southeast Asia and Middle East region, are not able to convert their ad traffic into profit.
However, looking at the potential that mobile advertising is holding, it will be viable for the developers to start monetizing on how much ever traffic they are getting. Plus, mobile advertising could soon become a lucrative industry globally, considering the rapid worldwide mobile penetration.
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