Delivered at Casual Connect Asia 2016 Appodeal covers the latest changes in mobile ads and makes predictions for the market development.

1. Casual Connect Singapore ‘16
The State of Mobile Ads: trends and
forecasts.

2. About Appodeal

3. About Appodeal

4. About Appodeal
70,000,000
Monthly Active Users (MAU)

5. About Appodeal
6,000,000,000
impressions a month

6. About Appodeal
2,500
app developers

7. Market Overview: Mobile first world

8. Market Overview: time spent in mobile

9. Market Overview: device preferences

10. Market Overview: common trends
• Interstitials and banners account for
the majority of the ad revenue. Lead to
lower retention rate, but will remain major
formats for ad-based apps in 2017.
• Native is a good replacement for banners
and will gain more advertisers.
• Rewarded Videos remain a good alternative
to in-app purchases, but low ARPDAU.

11. Market Overview: common trends
• Auction Based Ad Mediation will continue
to ramp up and be adopted by publishers.
• Hyperlocal targeting is growing.
Pass device location to attract advertisers.
• Ad Revenue attribution per user cohort
becomes real, just like with in-app
purchases. Leads to more accurate LTV.

12. Ad Formats Performance Overview
ARPDAU eCPM
Retention
Effect
Impressions
per DAU
Interstitials $0.013 $5.97 Bad 2.28
Banners $0.009 $0.4 Bad 22.9
Rewarded
Video
$0.007 $6.76 Good 0.87
Native Ads $0.007 $1.1 Good 6.39
Video
Interstitials
$0.006 $4.74 Bad 0.2

13. Interstitials Overview
ARPDAU eCPM
Retention
Effect
Impressions
per DAU
Interstitials $0.013 $5.97 Bad 2.28
• Highest ARPDAU
• Brand advertisers
• Mostly programmatic
• Most annoying

14. Interstitials: Core Ad Networks
ARPDAU eCPM
Competitive
fill rate
Ad types Geo
Admob $0.003 $2.22 53.4% Brands, CPI World
Mopub $0.004 $3.85 17.08% Brands, CPI Tier 1
StartApp $0.001 $0.99 80% CPI World
Facebook $0.003 $2.03 17.59% Brands, CPI World
MyTarget $0.002 $1.25 36.87% Brands, CPI Russia

15. Banners Overview
ARPDAU eCPM
Retention
Effect
Impressions
per DAU
Banners $0.009 $0.4 Bad 22.9
• Outdated format (for advertisers, but not for publishers)
• Brand advertisers
• Mostly programmatic
• Good choice for long sessions

16. Banners: Core Ad Networks
ARPDAU eCPM
Competitive
fill rate
Ad types Geo
Admob $0.002 $0.12 53.19% Brands, CPI World
Amazon $0.003 $0.51 7.74% Brands, CPI US
Inneractive $0.002 $0.2 12.97% Brands, CPI Tier 1
Mopub $0.001 $0.19 12.14% Brands, CPI Tier 1

17. Video Interstitials Overview
ARPDAU eCPM
Retention
Effect
Impressions
per DAU
Video
Interstitials
$0.006 $4.74 Bad 0.2
• Can be a good addition to interstitials

18. Video Interstitials: Core Ad Networks
ARPDAU eCPM
Competitive
fill rate
Ad types Geo
Applovin $0.0013 $1.5 75.52% CPI World
Mopub $0.0025 $3.31 7.27% Brands, CPI Tier 1
Vungle $0.0011 $1.68 42.8% CPI Tier 1
UnityAds $0.0006 $1.18 36.58% CPI World

19. Rewarded Videos Overview
ARPDAU eCPM
Retention
Effect
Impressions
per DAU
Rewarded
Video
$0.007 $6.76 Good 0.87
• Programmatic drives branding demand
• Mostly CPI advertisers
• Neutral effect on retention
• Offers great eCPM, however ARPDAU is typically low due
to low # impressions per DAU

20. Rewarded Videos: Core Ad Networks
ARPDAU eCPM
Competitive
fill rate
Ad types Geo
Applovin $0.001 $2.05 83.36% CPI Tier 1
UnityAds $0.001 $1.76 61.94% CPI World
Chartboost $0.005 $3.89 22.16% CPI World
Vungle $0.001 $1.66 40.64% CPI Tier 1
AdColony $0.0008 $1.3 38.83% CPI / Brands Tier 1
Mopub $0.001 $3.5 4.54% CPI / Brands Tier 1

21. Native Ads Overview
ARPDAU eCPM
Retention
Effect
Impressions
per DAU
Native Ads $0.007 $1.1 Good 6.39
• Great alternative to banners
• Programmatic is growing => Branding advertisers
• Neutral effect on retention
• 30% - 200% eCPM improvement compare to banners

22. Native Ads: Core Ad Networks
ARPDAU eCPM Competitive
fill rate
Ad types Geo
Facebook $0.00160 $0.46 14.07% CPI / Brands World
MyTarget $0.00044 $0.18 44.72% CPI Russia
Avocarrot $0.00058 $0.2 9.5% CPI / Brands Tier 1
PubNative $0.00117 $0.69 3.49% CPI Tier 1
Flurry $0.00119 $0.18 9.64% CPI / Brands Tier 1
Mopub $0.00008 $0.14 46.2% CPI / Brands Tier 1
StartApp $0.00009 $0.05 74.68% CPI World

23. Native Ads vs. Standard Banners
• Higher Retention Rate
• eCPM uplift:
18% - 200%

24. Device Model CTR: Android
0
0.35
0.7
1.05
1.4
Alcatel Samsung HTC ASUS Sony / Lenovo Prestigio
CTR, %

25. Device Model CTR: Battery State
0
0.45
0.9
1.35
1.8
1-10% 21-30% 41-50% 61-70% 81-90%
CTR, %

26. Device Model CTR: Connection Type
0
0.325
0.65
0.975
1.3
Wifi 3G
CTR, %

27. Device Model CTR: Day of Week
0
0.25
0.5
0.75
1
Sun Mon Tue Wed Thu Fri Sat
CTR, %

28. Device Model CTR: Hour of Day
0
0.25
0.5
0.75
1
0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23
CTR, %

29. Forecast for 2017
• Interstitials will remain accountable for the majority
of mobile game ad revenues.
• Native Ads will be adopted by publishers to improve
retention rate and monetize non-paying users.
• Videos will remain a good alternative to monetize
non-paying users, however, its volume and ARPDAU
will stay relatively low.

30. Forecast for 2017
• Programmatic Native and Video will continue to
grow, bringing more branding advertisers and ad
networks into the space.
• Ad Revenue attribution per user cohort will become
available to publishers, just like IAP revenue attribution.
• Traditional Waterfall model will be replaced with
Header Bidding (Flat Waterfall) model.

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