A New King: In-App Inventory

icon_mediaSmartphone and tablet users spend an average 3 hours and 15 minutes using mobile apps each day. The Titanic, a once two-part video cassette, falls just shy of this time interval at 3 hours and 14 minutes. Welcome the new ‘King of the World’, in-app inventory.

This valuable user attention and viewership is causing advertisers to shift their ad spending dramatically.

US advertisers are projected to spend $15.45 billion to serve mobile display ads programmatically, exceeding the amounts spent on radio, newspaper, and magazine ads.

Over half of these mobile programmatic ad dollars are derived from popular social media networks. Digital analysis and spending trends estimate 51% will be spent on Facebook this year. Marketers do not foresee any one network, app, or publisher conquering Facebook’s dominance; however, as more in-app display inventory transacts programmatically, the majority of mobile programmatic ad dollars will be spent outside of Facebook.

The industry’s lag in developing apps has allowed Facebook to reign supreme. Advertisers became familiar with programmatic desktop methods and carried over these ‘web-centric’ buying habits to mobile marketing. The reliance of cookie retargeting, availability of premium content, and distinct worth of the mobile web experience has been predominately considered before the development of an app. Traditional publishers– that advertisers equate as premium inventory– have been primarily web-based. In-app content is presently dominated by game inventory, messaging apps, and social media. In addition, app-based solutions tend to require special software developments, which create construct difficulties as compared to web-based technologies.

Although apps have been challenging, premium publishers are beginning to understand the value in creating these profitable time-consumers. The Weather Channel and Pandora have led the way in establishing programmatic in-app inventory sales. This demonstration of revenue potential has sparked the growth and extended the list of other premium publishers creating likening apps.

Along with ad revenue benefits, in-app inventory will also provide valuable insights by identifying and coupling app data with existing web data. This marriage of technologies will help to illustrate a complete picture of consumer habits, cross-device. Accuracy rates of these matching methodologies have improved significantly over the last two years. Previously, rates ranged from 30% – 40%; however, recent technology developments have allowed for much higher stats, ranging from 70% – 80%. Improvements like these will promote cross-channel programmatic buying and boost advertiser confidence in device technologies.

In-app inventory will continue to flourish over 2016 – 2017. The defined “Driving force behind the growth of programmatic mobile display” will change the programmatic world as we know it.

Is in-app inventory and cross-channel advertising of interest to you? We can help! Contact Liquidus to learn more about our programmatic mobile offerings today.



Sources: http://bit.ly/2api5Gt | http://imdb.to/1hZzAbZ