PubMatic Research Finds Mobile Advertising Propelling With 5G Fueling Video Ads

The marketing budget of almost every company is spread across a wide array of media, but one of the most crucial areas of concern remain is digital ad spending, which covers the spending on displays, videos, media, paid search, and more.

The first Quarterly Mobile Index (QMI) of 2019 by PubMatic, a premium digital technology company, includes key trends, providing both advertisers and publishers with insights around mobile advertising, leading to smarter programmatic strategies and future mobile opportunities. 

In the US, digital ad spends recently passed $100 billion due to dominant increases in mobile advertising and video ad spend. As mobile advertising continues to evolve, it’s imperative for advertisers and publishers to both understand and prepare for these changes.

PubMatic’s Q1 2019 QMI report reveals the top four trends to watch:

• Due to Video, Mobile Ad Spend Accelerates – The promise of 5G has the potential to bring powerful and interactive content and experiences, changing the way and speed at which video is consumed. 
• Mobile In-App Header Bidding Still Needs Time to Grow - Despite recent popularity and publishers’ pressure to optimize mobile in-app header bidding, lack of knowledge has led to new obstacles in adoption.
• Safety Practices Take Center Stage as Fraud Rises – The majority of additional programmatic display dollars over the next year will go to private setups like PMPs.   
• The Opportunity for Growth in APAC is Massive – Marketers in APAC are becoming more knowledgeable in programmatic strategies, illuminating the need to adapt to automated ad strategies in other parts of the world.

Going forward, the consumption across mobile devices is expected to overtake television, as video viewing habits continue to impact the fight for attention. This has led marketers to spend $29 billion globally on mobile video advertising.

The appearance of 5G makes focusing on mobile all the more important, as the expectations arise that consumers, advertisers, and publishers will see a dramatic change in how video is consumed. This will lead to more seamless, complex video ad experiences for mobile users. 

Paulina Klimenko, SVP, Corporate Development, and GM, Mobile at PubMatic explained,

“Mobile advertising continues to see monumental increases in spending, while still making strides towards greater transparency and returns, which is hugely important for publishers and advertisers. That said, the industry is only now learning how to properly take advantage of in-app header bidding, which has led to more obstacles.”

He further added,

“To find success, app publishers should consider the differences in header bidding between desktop and in-app and how the implementation efforts will impact their dev teams.”

Despite mobile advertising’s massive growth, spend within Android apps is down 17% year-over-year, while iOS has seen an increase of 68%. Most recently, Google blacklisted 6 apps from a major app developer for large-scale fraud, reflecting a trend of ad fraud schemes targeting GooglePlay apps.

To avoid fraudulent apps and unreal traffic impressions, marketers’ tactics have shifted inventory to in-app PMPs. 

Programmatic, the automated buying and selling of digital media,  is an intrinsic aspect of the advertising industry in North America and Europe, but there’s still room for growth in the Asia-Pacific (APAC) region.

As mobile connectivity and mobile phone users have grown in APAC, the region’s advertisers and agencies are seeing the benefits in targeting mobile-first consumers through automated buying, though at roughly different paces.

With about 359 million new mobile users expected to join in the next half-decade, there is a need of the hour to follow automated ad buying techniques.

Written By

Arpit Business Development Head

He is responsible for marketing programs, brand management, and corporate sponsorships. He thrives on challenges, particularly those that expand the company’s reach. Next to work, Shadow, his dog, immensely contributes to his happiness.

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