High-quality Mobile Inventory Driving Ad Spending

Tim Maytom

pubmaticAdvertisers demanding high-quality mobile inventory over the holiday period saw ad spending shift towards mobile private marketplaces in Q4 2015, with volume up by as much as 45 per cent in the weeks preceeding Black Friday.

According to PubMatic's latest Quarterly Mobile Index, advertisers directed spending to higher-quality inventory, especially through more transparent mobile private marketplaces, in an effort to secure customers over the crucial Christmas period.

As a result of this shift, premium publishers are garnering higher prices for their inventory and attracting more mobile ad spending, helping to close the gap between mobile ad spending and consumption, which has traditionally outpaced spending by a significant margin.

According to the report, mobile private marketplaces (PMP) are being favoured by major brands looking to target mobile consumers with timely, relevant advertising over the 2015 holiday shopping season, as the number of people researching and purchasing via mobile grew.

In the weeks approaching Black Friday, weekly mobile PMP monetised impression volume increase by 45 per cent, with retail and technology sectors growing even more in this period, by 106 per cent and 285 per cent respectively. eMarketer predicts that ad spending in PMPs in the US will reach $3.65bn (£2.5bn) this year, up from just $80m in 2013.

"Our data shows that the shifting industry focus to high-quality ad inventory is paying off for premium publishers," said Rajeev Goel, CEO and co-founder of PubMatic. "As low quality inventory is cleared out of the ecosystem, publishers are receiving higher CPMs.

"Publishers are also focused on creating higher-quality media experience for consumers, to combat ad blocking and encourage more media consumption, which also contributes to higher CPMs and attracts more ad spending from brand advertisers. We're seeing that private marketplaces also enable timely and scalable targeting of specific audiences. 2016 brings several major events, such as the presidential election and the Summer Olympics, which present immense opportunities for publishers and advertisers trying to reach mobile audiences with relevant marketing messages."