New PubMatic Research Finds Mobile In-App Monetization Spurred by Video and Header Bidding, Though Challenges Remain

Company Releases Q4 2018 QMI Report, Highlighting Key Trends in Mobile Advertising Growth

PubMatic, the publisher-focused sell-side platform (SSP) for an open digital media future, released its fourth Quarterly Mobile Index (QMI) of 2018. The report highlights key trends influencing mobile advertising growth, allowing publishers and advertisers to make smarter decisions around their programmatic strategies.

Advertisers are increasingly attracted to the enhanced targeting and increased customer engagement of mobile in-app, with many buyers opting for programmatic transaction methods for this inventory (Forrester Consulting). PubMatic’s Q4 2018 QMI Report found that in-app video ad spend was up over 200 percent year-over-year in 2018 as buyers embrace in-stream opportunities. Header bidding technology is also beginning to take hold within the in-app environment, with impression volumes growing more than 300X year-over-year in 2018.

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Innovative technologies such as server-side (S2S) header bidding are unlocking opportunities for publishers to reap the benefits of efficiency and increased competition. However, quality concerns still remain a challenge in-app, driving buyers to rely on private marketplaces for in-app inventory. As the open market becomes safer for the web, desktop and mobile web saw a rise in OpenRTB transactions. In-app inventory, on the other hand, experienced relatively flat growth in OpenRTB, while PMP impression volume experienced a 78 percent increase.

“Mobile is undeniably a huge growth driver for the programmatic industry, spurred by huge opportunities available in-app,” said Jeff Hirsch, CMO and head of US publisher development at PubMatic. “PubMatic is committed to advancing the technologies and services that will empower our clients to embrace programmatic in-app advertising. We also acknowledge that we all must work together to address the quality concerns that remain, so we can unlock the full potential the format has to offer.”

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For the first time, mobile is forecast to account for over one-third of global ad spend in 2019, becoming a more than $230 billion market (eMarketer). PubMatic’s Q4 2018 QMI report indicates five keys trends as publishers and advertisers look to further capitalize in 2019:

• In-app opportunities propel mobile into a leadership position in digital video.
• In-app header bidding is beginning to take hold.
• Advertisers increasingly leveraged private marketplaces to improve in-app quality.
• In-app monetization thrived, while mobile web experienced greatest growth.
• Holiday shopping provided a huge boost to mobile ad spend globally.

With this report, publishers and media buyers will be armed with insights into the trends and innovations impacting this burgeoning market and better positioned to capitalize on the growing opportunities available in-app. As a leader in mobile advertising technology, PubMatic will continue to invest in growing their capabilities over the course of the year, particularly around in-app, video, header bidding and PMPs.

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