Investment Reflects Regional Growth Far Outpacing Worldwide Rates
Vungle, the leading performance marketing platform for in-app video ads, announced it has opened an office in Singapore, the latest step in its expansion throughout the Asia-Pacific region (APAC). This investment was driven by the rapid growth in revenue from accounts in the region. Revenue from publishers based in Southeast Asia and India grew by 177 percent in the second quarter of 2017 when compared to the prior year.
Vungle’s investment in the Singapore office, expected to grow to 25 people by 2020, builds upon prior investments in the region which began with opening an office in Beijing in 2014. Vungle has seen great success in the Chinese market, which grew from seven percent of global revenue in Q2 of 2015 to 15 percent in the most recent quarter, while growing over 1,000 percent in absolute dollar terms in the same period.
According to a recent App Annie report, global in-app advertising spend is set to nearly triple in size from $72 billion in 2016 to $201 billion in 2021, with ad revenues increasing by 50 percent from 2016 to 2017. With the mobile user base expected to double to 6.3 billion in 2021 and time spent in apps expected to grow to 3.5 trillion hours, advertisers and publishers have a unique opportunity to capitalize on this rapidly growing market.
“The App Annie report projects that APAC will outpace other regions and hit $77 billion by 2021. Based on similar reports and what we’re experiencing in the region, we know APAC is poised for significant growth,” said Zain Jaffer, CEO of Vungle. “By opening the office in Singapore we will be able to work more closely with local publishers and advertisers to take advantage of the rapid growth in this region and around the world.”
“The mobile advertising industry in Asia is growing dramatically, and this presents a huge opportunity for advertisers and publishers in the region,” said Artur Grigorjan, head of marketing growth at Playrix. “Vungle is known as a leader in the in-app advertising space globally, and is driving top conversion rates through their creative innovation and technology. That’s why they’re a trusted partner of Playrix as both an advertiser and publisher.”
The digital ad market is also heating up in India and is expected to surpass the $1 billion mark in 2017. Vungle has seen explosive growth in this market as well, with a 181 percent increase in revenue and a 172 percent increase in user growth in Q2 compared to the prior year.
Jihong Lee, global expansion for Southeast Asia at Supercell, said, “Southeast Asia has been a huge area of growth for the mobile advertising market. There are now more people and devices online than ever before, presenting big opportunities for developers. Companies like Vungle are important to growing this ecosystem and we look forward to seeing them do well in the region.”
Jaffer added, “When we look beyond the data that only focuses on volume, we’re able to identify and target loyal, high-value consumer audiences that generate significant ROI for our advertisers. This is driving growth for our partners and enabling Vungle’s continued expansion.”