This report examines trends in mobile programmatic advertising observed on MoPub Marketplace -- the world's leading mobile programmatic exchange -- in Q1 2016. Key themes include advertising spend around major events, the use of high impact ad formats, and growth in EMEA and APAC.

1. Global mobile
programmatic trends
A MOPUB MARKETPLACE REPORT | Q1 2016
PUBLISHED MAY 2016

2. FOREWORD
An emerging channel just a few years ago, mobile
programmatic has grown immensely to become one
of the largest sources of investment for advertisers.
While it has always been an effective channel for
performance advertisers, the influx of brand buyers
has brought realities like seasonal pricing and event-
based spending to become the norm.
Last year, we saw mobile advertising explode during
the 2015 NFL Super Bowl. This trend of reaching
mobile in-app audiences during key moments
continued when we found major campaigns spike in
spend in sports apps during college and professional
football game days last Fall. Event-based campaigns
have continued to expand. In this report, we explore
how presidential candidates focused their spending
around key voter events as well as how tax services
companies sought after customers leading up to
federal and state taxes being due in the US.
We also look into how seasonal trends impacted
mobile advertising — similar to the most established
advertising mediums. Fortune 1000 brands made up
the majority of mobile in-app ad spend in Q4. This
quarter, performance buyers capitalized on lower
eCPMs in Q1 by spending 10% more in early Q1 than
early Q4. As we progressed through the quarter,
advertiser spending increased each month, as did
eCPMs.
Our report also delves further into how competition
is evolving for ad formats, and how continued growth
is impacting the mobile programmatic landscape in
EMEA and APAC. All of the trends we have seen
point to mobile programmatic advertising reaching a
state of maturity and becoming cemented into the
budgets and campaign planning of the world’s
advertising ecosystem.

3. SUMMARY
Mobile programmatic —
from emergent to
established
Industry embraces
mobile-focused ad
formats
Savvy buyers and
sellers spur growth
in EMEA and APAC
Event-based and seasonal
trends early this year now
point to alignment with the
most established
advertising channels.
High impact ad formats like
interstitials, native, and
video see growing adoption
and strong results among
buyers and publishers.
Growth in mobile
programmatic advertising
continues in region for
EMEA and APAC with
increased adoption of high
impact ad formats

4. Mobile programmatic — from
emergent to established
Event-based and seasonal trends early this year now point to
alignment with the most established advertising channels.

5. Politicians sought to reach their audiences on mobile in order to drive support —
particularly around key debates and voter events.
Presidential candidates harnessed voters’
attention on mobile around key events
DEMOCRATS OUTSPENT
REPUBLICANS ON MOBILE IN-
APP ADVERTISING IN Q1 2016
>
Q1 2016 presidential candidate political ad spending
1/1/16 2/1/16 3/1/16
Lead up to Iowa
Caucus
Feb. 1
Mid-March
primaries
Mar. 12-15
Late March
primaries
Mar. 22
ADSPEND

6. ADSPEND
Q2 2015 Q3 2015 Q4 2015 Q1 2016
Tax services companies also focused major ad spend in Q1 on reaching their audience on mobile during the time of
year that matters most: the weeks and months leading up to the collective national due date for federal and state taxes.
Tax services companies poured in budgets leading up
to Tax Day to reach their audience on mobile
30xhigher spending in
VS
Q1
2016
Q4
2015

7. eCPMs
Q1 2015 Q2 2015 Q3 2015 Q4 2015 Q1 2016
Quarterly eCPMs Q1 2015 - Q1 2016
Similar to the most established
advertising mediums, mobile
programmatic saw a slight dip
in eCPMs in Q1 2016 vs. Q4
2015. Lower seasonal prices
coincided with broader
distribution of spend, as non-
Fortune 1000 companies
spent more ad dollars in early
Q1 than early Q4. eCPMs still
increased over 26% in Q1 2016
vs. Q1 2015.
Spend shifted from Fortune 1000 dominance in Q4
to more distribution across the ecosystem in Q1
51%
share of Q4 2015
spend that came from
F1000 companies
+10%
increase in non-
F1000 spend
Q1 2016 vs. Q4 2015

8. Following the laxed pricing in early Q1, advertisers across the ecosystem increased spend each month in conjunction
with steadily rising eCPMs through the quarter. February and March has 1.4% and 4.8% higher eCPMs than January,
respectively.
eCPMs rise again through the quarter as advertisers
across the ecosystem increase spend each month
eCPMs
January February March
+1.4%
higher than January
+4.8%
higher than January
Monthly eCPMs Q1 2016

9. Industry embraces mobile-
focused ad formats
High impact ad formats like interstitials, native, and video see
growing adoption and strong results among buyers and
publishers.

10. There was more competition from buyers for larger and higher impact ad formats like interstitials and video,
versus traditional banner inventory. Competition is measured by bid depth — which refers to the average
number of buyers bidding on an available impression.
Demand was greatest for larger, higher
impact ad formats
Competition
Banner Interstitial Video
Competition by ad format Q1 2016
+36%
higher than banner
+53%
higher than banner

11. In addition to competing for higher impact formats on the open exchange, buyers strived to secure interstitial and
native inventory through private marketplaces. In fact, these same buyers were willing to pay 77% higher eCPMs on
average on interstitials in private marketplaces vs. the open exchange.
Buyers leveraged private marketplaces to secure
even more high impact ad format supply
88%
9%
3%
Banner
Native
Interstitial
+77%
These same
buyers paid
higher eCPMs on interstitials
in private marketplaces vs.
the open exchange
Private marketplace spend by ad format
Q1 2016

12. Revenue
In the span of just one quarter, publishers added over 32% more video supply. Meanwhile, revenue from video
ads more than doubled in Q1 2016 vs. Q1 2015.
Video ad revenue Q1 2016 vs. Q1 2015
Publishers continued to bring on video supply and
saw revenue increases
+121%increase in video
ad inventory
32%
VS
Q1
2016
Q4
2015
Q1 2015 Q1 2016

13. Similar to video, publishers showed substantial growth in adoption of native ads — which
coincided with tremendous revenue gains in Q1 2016 vs. Q1 2015.
Publishers also increased adoption of native ads
alongside revenue gains
Inventory
Q1 2015 Q1 2016
Native ad inventory Q1 2016 vs. Q1 2015
+531%
Native ad revenue
increase in
305%
VS
Q1
2016
Q1
2015

14. Case Study: Major auto brand drives 150K+
dealership visits in two months with native ads
OBJECTIVE
Increase awareness for their brand and drive
visits to local car dealerships.
APPROACH
Reach consumers with native ads on MoPub
and encourage people to come to dealerships
and test drive new cars
RESULTS
In just two months, they achieved the following:
• Reached consumers on more than 21.8
million unique devices
• Generated 3.53% click-through rate
• Spurred 150,000+ dealership visits
Native ads use a single set of creative assets, but
automatically reassemble across MoPub supply to match the
unique look and feel of each app.
Test Drive Test Drive
Test Drive
*Read the full case study online. Campaign managed by demand-side partner Adelphic and location measurement handled by Placed.

15. Savvy buyers and sellers spur
growth in EMEA and APAC
Growth in mobile programmatic advertising continues in
region for EMEA and APAC with increased adoption of high
impact ad formats

16. Widespread adoption of mobile programmatic continued in EMEA, with 52% more inventory
and 97% more spend on our exchange in Q1 2016 vs. Q1 2015.
EMEA sees major overall growth in mobile
programmatic
Inventory
Q1 2015 Q1 2016
+52%
AdSpend
Q1 2015 Q1 2016
EMEA inventory Q1 2016 vs. Q1 2015 EMEA ad spend in Q1 2016 vs. Q1 2015
+97%

17. Similar to trends seen globally, native and video were key focus areas for publishers and advertisers in EMEA over
the past year. Publishers continued to open up inventory rapidly for both formats, while demand grew significantly.
Sophisticated buyers and sellers in EMEA
are quickly scaling higher impact ad formats
NATIVE AD INVENTORY
+287%
NATIVE AD SPEND
+217%
Q1 2016 vs. Q1 2015
+62%
+228%
VIDEO AD INVENTORY
VIDEO AD SPEND

18. APAC publishers and advertisers continued to buy-in to mobile programmatic, showing strong
growth in overall inventory and ad spend.
APAC continues to grow rapidly for
buyers and publishers
Inventory
Q1 2015 Q1 2016
+127%
AdSpend
Q1 2015 Q1 2016
APAC inventory Q1 2016 vs. Q1 2015 APAC ad spend Q1 2016 vs. Q1 2015
+104%

19. 56%
44%
Banner
All Other Formats
Banners make up nearly half of APAC supply,
but higher impact formats are growing faster
Just a year ago in Q1 2015, banners made up 77% of all
APAC supply. They still make up close to half, but higher
impact formats like video, interstitials, and native are the
fastest growing inventory segments.
APACAnnualSupplyGrowth
Banner Interstitial Video Native
+31%
+52%
+189%
+1,345%

20. In line with inventory growth, more buyers are looking for larger, higher-impact, ad formats like
interstitials and video — leading to more competition from advertisers for those ad formats.
APAC demand is strongest for
larger interstitial and video formats
Competition
Banner Interstitial Video
+83%
higher than banner
+117%
higher than banner
Competition by ad format in APAC Q1 2016

21. Summary

22. Seasonal and event-based trends in mobile
programmatic point to alignment with the most
established advertising channels. Key events like
tax season and presidential primaries saw major
spending from tax services companies and
presidential candidates, respectively, during this
past quarter. Likewise, performance buyers
capitalized on lower ad prices — reflecting seasonal
trends of the overall advertising technology
industry.
Exciting trends emerge
and continue
Mobile programmatic
advertising has matured1

23. High impact ad formats like interstitials, native, and
video see growing adoption and strong results
among buyers and publishers. Interstitial and video
ad inventory saw the greatest competition from
buyers. One large automotive brand drove over
150,000 visits to local car dealerships by reaching
their audience with native ads.
Exciting trends emerge
and continue
Industry embraces
mobile-focused ad formats2

24. Growth in mobile programmatic advertising
continues in region for EMEA and APAC for
publishers and advertisers alike. Sophisticated
buyers and sellers in EMEA have quickly scaled
inventory and spend for video and native. And even
though banners still make up 44% of inventory in
APAC, that decreased from 77% in Q1 2015 as
native, interstitials, and video were the fastest
growing inventory segments.
Exciting trends emerge
and continue
Savvy buyers and sellers spur
growth in EMEA and APAC3

25. GLOSSARY
MOPUB MARKETPLACE: The MoPub Marketplace is a real-time bidding exchange for mobile ads where advertisers,
agencies and their trading desks, and demand side platforms can bid on ad inventory from thousands of mobile
application publishers in an efficient, real-time market.
PRIVATE MARKETPLACE: A private marketplace is a programmatic trading environment whereby a publisher makes a
segment of inventory available to an advertiser or group of advertisers at a defined price.
eCPM: Effective cost per thousand advertising impressions is the most common way to refer to prices in mobile
programmatic advertising.
CTR: Click-through rate is the number of clicks that an ad receives divided by the number of times that ad is shown. This
is a common metric to measure consumer engagement with an ad.
eCPC: Effective cost per click is a metric used by marketers to gauge the effectiveness of their campaigns. Sometimes it
is referred to as estimated cost per click. It is calculated by the price paid for mobile ads divided by the number of clicks
generated from that campaign.
CLEAR RATE: Clear rate is an important metric for demand-side partners that helps them measure their buying efficiency.
It refers to the rate at which a purchased ad impression renders and displays in a publisher’s mobile app.
BID DEPTH: Bid depth is a metric that measures how many demand-side partners bid in any given auction for an available
ad impression.

26. DSP: Demand-side platforms are technology companies who build software used to purchase advertising in an
automated fashion. DSPs are most often used by advertisers and agencies to help them buy display, video, mobile and
search ads.
BANNER AD: Banner ads in this report refer to mobile in-app ads, which are typically anchored to the bottom of the
screen and measure in dimensions of 320x50 or 728x90.
INTERSTITIAL AD: Interstitial ads in this report refer to fullscreen mobile in-app ads that measure in dimensions of
320x480, 480x320, 768x1024, or 1024x768. This type of advertisement can be a static image or a video.
NATIVE AD: Native ads in this report refer to mobile in-app ads that match the form and function of the app in which it
appears. Typically, they appear in content feeds of apps. Native ads are comprised of up to 5 separate components from
advertisers, which can render in many different ways to match the look and feel of a publisher’s application.
VIDEO AD: Video ads in this report refer to mobile in-app video ads. Video ads typically play in a full screen interstitial
setting and are either 15 or 30 seconds in length.
GLOSSARY

27. ABOUT THE REPORT
The Global Mobile Programmatic Trends Report provides market data from real-time bidded auctions for mobile ad
impressions, aggregated from mobile applications, advertisers, and demand side platforms on MoPub Marketplace, one of the
world’s leading advertising exchanges for mobile apps.
MoPub Marketplace is a real-time bidding exchange for mobile ads, where advertisers, agencies and their trading desks, and
demand side platforms can bid on ad inventory from thousands of mobile application publishers in an efficient, real-time market.
MoPub Marketplace data is representative of over 45,000 active mobile apps, more than 450 billion monthly ad requests, more
than 1 billion unique devices, and 175+ demand-side platforms.
The data reflected here is solely representative of exchange-traded media on MoPub Marketplace and does not include any ad
network or ad network mediation data.
The information contained herein is based on internal data and data from a third-party that we do not control, and could be
subject to errors and omissions.
Questions, comments, or data inquiries about this report can be sent to MoPub-datareports@twitter.com
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© 2016 MoPub, Inc.
TWITTER, MOPUB and the Bird logo are trademarks of Twitter, Inc. or its affiliates. All third party logos and trademarks included
are the property of their respective owners.

28. ABOUT MOPUB
MoPub, a Twitter company, is the trusted, mobile-first monetization platform that powers a high-growth revenue
strategy for mobile app publishers. MoPub’s platform ensures publishers earn more revenue by combining
powerful ad serving, flexible network mediation controls, rich ad formats, and access to the one of the largest
sources of advertiser demand, MoPub Marketplace. MoPub Marketplace provides mobile publishers with
unparalleled programmatic revenue and highly relevant ads by enabling buyers such as demand side platforms to
reach a high quality audience on mobile apps through a powerful interface, strict supply quality measures, and a
transparent bidding experience. MoPub’s world-class service and years of proven expertise benefit both publishers
and DSPs with insights to grow their businesses and adapt to their changing needs.
For more information, please visit mopub.com and follow MoPub on Twitter at twitter.com/mopub.
For specific data inquiries, email mopub-datareports@twitter.com.
© 2016 MoPub, Inc.
TWITTER, MOPUB and the Bird logo are trademarks of Twitter, Inc. or its affiliates. All third party logos and trademarks included
are the property of their respective owners.