Report: 70 Percent Of Mobile Ad Revenue Coming From “Interstitials”

China-based mobile ad network appflood.com has released its first report on the state of global mobile advertising (for Android apps). The data are based on activity gleaned from 400 million unique smartphones globally.

While the company does business globally I would caution that AppFlood’s data, in addition to reflecting Android only, may skew regionally and not be fully representative of the North American or European trends.

AppFlood says that global cost-per-app-install rates declined in Q1 to $0.30 globally. This is a global average. North American and European markets CPI rates are higher.

Publisher eCPMs climbed to an average high of $1.26 in February before falling by half in March. Regional data are not provided in the report. Hopefully they will break all these data down by region in future reports.

AppFlood says that most of the ad revenue it sees is being generated by “interstitials.” The category is not fully delineated; interstitials can include video or rich media. However, rich media is a separate category in the report.

Interstitial ads generated a full 70 percent of global app-ad revenue according to AppFlood. Rich media, however, is gaining.

As an aside, I would argue that video is an increasingly prominent and important component of mobile advertising and will probably reach 50 percent or more (at least in North America) in the next couple of years.

AppFlood reported that most of the traffic on its network came from Asia, followed by the Middle East. These data to me are an indication of the regional skew of its network. It’s very unlikely that the Middle East region objectively drives 23 percent of global app traffic.

There’s much more data in the report. If you’re interested in reading more it’s available here.

About The Author

Greg Sterling

Greg Sterling is a Contributing Editor at Search Engine Land. He writes about the connections between digital and offline commerce. He previously held leadership roles at LSA, The Kelsey Group and TechTV. Follow him Twitter or find him on LinkedIn.