Report: Android lags iOS in mobile ad spend, value
The value of ads running on Google's (NASDAQ:GOOG) Android-enabled devices declined sharply quarter-over-quarter, while ads for Apple's (NASDAQ:AAPL) iOS-enabled devices grew, according to a new report from MoPub. In fact, devices running iOS--including the iPhone, iPad and iPod touch--control over 75 percent of ad spend share, the report said.
MoPub, an ad management company, released its "Q1 Global Mobile Advertising Report," which examined cost per mille (CPM), click through rates (CTR) and competitive Factor to determine how consumers and advertisers interact with and purchase mobile advertising.
"In Q4 we definitely saw some a ramp up of demand and traction around Android, but in Q1 the traction wasn't sustained," explained Paul Gelb, MoPub's head of strategy, in an interview with FierceMobileContent. While Android gained some ad spend market share in February, by March it dipped lower than it had been in January before the increase.
"Monthly ad spend share on iPhone grew 12.4 percent over the quarter and now accounts over 50 percent of ad spend on the exchange or more than two times the share of Android smartphones," stated the report.
Android tablet traction was especially low and made up less than 1 percent of ad spend. Gelb credited this to fragmentation in the Android-enabled tablet market. "You definitely don't have a halo tablet device that has really captured the full attention of advertisers like you have with the iPad," said Gelb. If consumers gravitate around one type of tablet, this could increase the amount of ad spend targeted at Android tablets.
"Tablet impressions are extremely valuable, and there's a lot of commerce activity that goes on around tablets. Advertisers that have entered this space focus on tablets because of the bigger size, said Gelb. He cited the mobile-inspired Facebook Newsfeed redesign, which emphasized larger images.
Android's shrinking share of the mobile ad spend market is interesting, given its dominance in the U.S. smartphone OS market. Last month, comScore reported that Android powered 53.7 percent of smartphones, leading iOS' 38.9 percent market share. IDC, in a recent report, predicted that on the tablet side, Android would soon surpass Apple in terms of market share.
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