Saturday, 24 June 2017

Chinese developers overtake US in global mobile ad spend on Android

PapayaMobile
Thursday 19 December 13

Chinese developers spent 25 percent more than U.S. developers on mobile ads on Android in Q3 2013, according to a new report from AppFlood, the mobile advertising network from PapayaMobile. In 2013, Android developers also saw a 332 per cent increase in mobile ad revenue, driven largely by Chinese advertisers. The report, entitled “AppFlood Global Android Advertising Industry Insights&rdquo…

Chinese developers spent 25 percent more than U.S. developers on mobile ads on Android in Q3 2013, according to a new report from AppFlood, the mobile advertising network from PapayaMobile. In 2013, Android developers also saw a 332 per cent increase in mobile ad revenue, driven largely by Chinese advertisers.

The report, entitled “AppFlood Global Android Advertising Industry Insights”, is based on an analysis of AppFlood’s traffic in the third quarter of 2013. To date, AppFlood has served ads in more than 290 million unique mobile devices.

According to the AppFlood report, Chinese developers are allocating more of their marketing budgets for in-app mobile advertising, and between March and September 2013 increased their ad spend by 151 per cent.

Other key findings in the report include:

• Chinese advertisers purchased 55 percent of total users on AppFlood’s network in Q3 2013, compared to U.S. advertisers who purchased just 10 percent of total new users

• In Q3 2013, Chinese developers spent just 0.06 percent of their budget to acquire Chinese users, compared to 7.5 percent in the U.S., 7.2 percent in India, 6.5 percent in Saudi Arabia, and 4.9 percent in Indonesia

• Chinese developers in Q3 2013 spent 28 times more to acquire users in Southeast Asia than in China, and twice as much to acquire users in Southeast Asia than in North America

With large volumes of mobile ad inventory now available across multiple markets, including Southeast Asia, app developers and publishers are profiting as advertisers compete both for users in high-growth emerging markets, and also inventory to meet the growing demand from developed markets.

Driving this demand in 2013 are Chinese developers, who use Southeast Asia and the Middle East as an international test bed for their app or game before launching it to the rest of the world, in the same way that Western developers use Canada and New Zealand for pre-launch testing. Growing numbers of Chinese developers have now set their sights on global expansion beyond China, inspired by the international success that Chinese apps such as WeChat, Go Launcher, 360 Mobile Security, and Clean Master have generated.

According to the AppFlood report, Chinese developers now purchase 38 percent of global app traffic to drive their expansion plans internationally. As a result, publishers with traffic in emerging markets in Southeast Asia and the Middle East are seeing their eCPM rates and mobile ad earnings soar.

“This year, Chinese developers with deep pockets have been scaling up their apps in parallel with China’s newfound global influence on the app economy,” said Si Shen, PapayaMobile’s CEO. “As Chinese developers increase their mobile ad spend to expand into emerging markets, developers with traffic from Southeast Asia and the Middle East - which have previously been undervalued - are suddenly earning more revenue from these regions. As China’s influence continues to grow globally in 2014, expect more and more developers to monetize traffic from these emerging markets, which have until now been underestimated and undervalued.”


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