Apple's iOS beating Google's Android in mobile ads with 75% spend share

Posted:
in iPhone edited January 2014
While Android devices continue to sell in large quantities, the advertising dollars that support the platform are increasing going to Apple's iOS, which now claims a 75 percent ad spend share of the leading ad server marketplace.

mobile ad spend share by device
Source: MoPub


Mobile advertising in the first quarter outpaced the previous holiday season quarter, but the way advertisers are spending their money is favoring Apple's iOS at the expense of Google's Android, according to a report by MoPub.

Trends in mobile advertising favoring iOS

Among the trends noted by MoPub: monthly ad share grew 12.4 percent for Apple's iPhone in the quarter, and now accounts for more than half of all ad spend in its marketplace. That's more than twice the share claimed by Android smartphones.

Add in iPad and iPod touch, and Apple's iOS platform accounts for "slightly over" 75 percent of ad spend share, despite a quarterly decline among non-iPhone iOS devices.

In contrast, the report notes that "Android tablets have failed to gain traction, accounting for less than 1.0% of ad spend."

That indicates that Apple has the same roughly 75 percent "lion's share" of mobile advertising that it also has in mobile hardware profits, mobile software apps sales and mobile content downloads through iTunes.

Apple also ahead in ad, user value

MoPub identified two broad areas where Apple's platform has been outperforming Android. The first is that millions of Apple's users are connected to an iTunes or App Store account with a credit card.

Android began catching up in this area last fall with the popularity of higher-end Samsung products like the Galaxy S and Note lines, which ad buyers initially associated, MoPub reports, with "high value" users likely of possessing credit cards and "significant disposable income.""Many ad buyers discovered the increase in user value on Android devices was offset by a poor conversion rate of users from of ads."

However, during the first few months of 2013, "many ad buyers discovered the increase in user value on Android devices was offset by a poor conversion rate of users from of ads."

After an initial increase in ad spend share in February, Android has seen a decrease to levels below January. Apple's iPhone keeps edging upward in ad spend share, while the iPad and iPod touch are together larger than all Android spending combined.

Apple also ahead in rich media ads

In addition to serving a higher value audience, Apple's iOS also accounts for most "rich media advertising," which describes engaging ads that do more than just display a banner for users to click on.

Apple focused on improving the mobile ad experience in 2010 with the release of iAd, an effort to develop an engaging ad experience that wasn't annoying to users, and might instead be inviting, useful or even entertaining.



iAd uses HTML5 content that runs in a special security context to constrain malware and prevent the inadvertent opening of unanticipated vulnerabilities that has plagued interactive middleware such as Adobe Flash or Microsoft Silverlight.

While competitors launched a scoffing campaign that ridiculed Apple's iAd program and suggested that each expansion into lower tiers of advertisers with smaller budgets was actually a desperate admission of defeat, Apple has maintained its position as the third largest mobile ad network, despite being exclusive to iOS.

More good news for iAd: MoPub notes that "ad budget overwhelmingly sought out more engaging and effective ad units," with nearly 80 percent of the ad spend going into rich media ads (below).

"Rich media and iPhone were the only ad impression segments that increased ad spend share in February and March," the firm noted before adding, "However, most of the rich media ad spend share are also iPhone impressions. The inability for Android to capitalize on increased value generated by rich media exposes a major issue that will need to be addressed."

rich media ad spend share
Source: MoPub

Optimizing mobile ads

MoPub's report on its mobile ad market notes that advertisers made "significant improvements to ad spend optimization and to refine opportunistic tactics" in the quarter, resulting in "exponential payoff for this effort."

MoPub represents over 230 "tier 1 brand advertisers," including 58 of the 100 top advertisers in the United States. The firm's real-time market serves smartphone publishers in the US, Europe, Asia and Latin America.

Unlike other mobile ad networks, MoPub doesn't buy ad inventory or sell advertising. Instead, the company reports "market data from real-time bidding auctions for mobile ad impressions."
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Comments

  • Reply 1 of 33
    tallest skiltallest skil Posts: 43,340member


    Google can't even do ads right, even with all that marketshare, and it's the only thing they care about. image

  • Reply 2 of 33
    solipsismxsolipsismx Posts: 19,566member
    Google can't even do ads right, even with all that marketshare, and it's the only thing they care about. :lol:

    1) Note this article is mostly about where ads are being placed. You can still use AdMob on the iPhone, right?

    2) This is only one source so be wary of taking it as a blanket statement. That said, this all seems reasonable considering the iPhone's presence in other stats compared to the competition.

    3) This indicates that Apple's iOS platforms isn't crashing and burning as some here are stating despite no evidence to support it.
  • Reply 3 of 33


    But, but, but - Eric Schmidt told me Android is winning.

  • Reply 4 of 33
    I hope fair justice of its success will come to AAPL.
  • Reply 5 of 33

    Quote:

    Originally Posted by Tallest Skil View Post


    Google can't even do ads right, even with all that marketshare, and it's the only thing they care about. image



     


    Quote:

    Originally Posted by EricTheHalfBee View Post


    But, but, but - Eric Schmidt told me Android is winning.



     


    Did both of you fail to notice that that this article never mentions where that ad money was actually spent? Android has 25%, which is guaranteed to be 25% that is NOT going to Apple. That leaves the other 75% of mobile ad spending. Do you honestly think iAds is getting 75% of all mobile ad spending? If so, you're delusional (especially since the article states they're still third in mobile advertising). The fact is Google doesn't really care which platform advertisers target as long as the give their money to Google.

  • Reply 6 of 33


    It's because Apple users have more purchasing power than android users. Lots of them bought android because it's cheaper.


     


    Those techie/geeks who are louder that android is great and all are cheapskates.

  • Reply 7 of 33
    Watching that video of the late SJ it is amazing how iAds is really a much better experience.To this day still, when I see an iAd banner, I'm interested in clicking on it to see what they have done vs the other ads that I either couldn't care less about, or delete the free app because the ads are annoying.
  • Reply 8 of 33
    sockrolidsockrolid Posts: 2,788member


    Originally Posted by AppleInsider View Post



    ...  advertising dollars that support the platform are increasing going to Apple's iOS, which now claims a 75 percent ad spend share of the leading ad server marketplace.


     


    Winning.

  • Reply 9 of 33


    I'm yet to see a single iAd. 

  • Reply 10 of 33

    Quote:

    Originally Posted by caliminius View Post


     


     


    Did both of you fail to notice that that this article never mentions where that ad money was actually spent? Android has 25%, which is guaranteed to be 25% that is NOT going to Apple. That leaves the other 75% of mobile ad spending. Do you honestly think iAds is getting 75% of all mobile ad spending? If so, you're delusional (especially since the article states they're still third in mobile advertising). The fact is Google doesn't really care which platform advertisers target as long as the give their money to Google.



     


    Quote:

    Originally Posted by AdeFowler View Post


    I'm yet to see a single iAd. 



     


    Both of you don't get it. It's not about whether the money goes to Apple or iAd. It's about the fact that iOS devices are a better way for companies to spend their $$$ if they want to effectively reach customers.

  • Reply 11 of 33
    anonymouseanonymouse Posts: 6,558member

    Quote:

    Originally Posted by EricTheHalfBee View Post


    But, but, but - Eric Schmidt told me Android is winning.



     


    Android may be winning by some metric (worldwide market share?), but Android developers are certainly not winning: you can't make money selling Android apps, and, apparently, there's not much ad money to garner either.

  • Reply 12 of 33
    gatorguygatorguy Posts: 18,907member


    FYI.


     


    2010: iOS App Store has 20 times the revenue of Google's Android app store:


    http://techcrunch.com/2011/02/21/861-5-percent-growth-android-puny/


     


    Nov. 2011: iOS App Store has more than six times the revenue of Google's Android app store:


    http://www.wired.com/gadgetlab/2011/12/ios-revenues-vs-android/


     


    Nov. 2012: iOs App Store has over four times the revenue of Google's app store:


    http://thenextweb.com/insider/2012/11/29/google-plays-revenue-rises-by-311-but-apples-app-store-sees-4-times-more-sales-study-says/


     


    January 2013: iOS App Store has 3 1/2 times the revenue of Google's app store:


    http://blog.appannie.com/app-annie-index-january-2013/


     


    April 2013: iOS App Store has about 2 1/2 times the revenue of Google's app store:


    http://thenextweb.com/insider/2013/04/17/app-annie-google-play-app-revenue-grew-90-in-q1-2013-but-apples-app-store-still-saw-2-6-times-more-sales/

  • Reply 13 of 33
    nagrommenagromme Posts: 2,834member


    Anti-Apple takeaway:


     


    "iPod Touch Ad Spending Plummets - Final Nail in Apple's Coffin?"


     


    Trolls can have that one for free :)

  • Reply 14 of 33


    to all those android fanboys wondering why google is building iOS apps, here is your answer.

  • Reply 15 of 33
    propodpropod Posts: 51member


    Ok - and the $$$ goes to?

  • Reply 16 of 33
    mstonemstone Posts: 11,510member

    Quote:

    Originally Posted by AdeFowler View Post


    I'm yet to see a single iAd. 



    Same here. I have very few apps and the only free apps I have are from big names like Skype, Twitter, Google, etc. which don't have iAds. Google doesn't have any ads in their apps either, at least I have not seen any.

  • Reply 17 of 33
    joshajosha Posts: 901member

    Quote:

    Originally Posted by AdeFowler View Post


    I'm yet to see a single iAd. 



    You must not use data apps very much.

       I get an increasing number of ads on my iPhone.


     


    As for android phones not being nearly as much on the web, I see that with my android friends.


    They just want a phone with a screen.  Most are attracted to the lower up front cost and some to the larger screens.


    Most don't look at the real costs, are taken in by deals.  A few pay for data, but don't even use it, partly because  they aren't very computer knowledgeable.


    Of course they mostly buy few years back  previous model android phones, because they are so low cost up front and  carriers actually pay you ($0 plus gift cards) to take them away on contract.

  • Reply 18 of 33
    mstonemstone Posts: 11,510member

    Quote:

    Originally Posted by OllieWallieWhiskers View Post


    to all those android fanboys wondering why google is building iOS apps, here is your answer.



    What is the answer? Does Google have ads in their apps? Which ones?

  • Reply 19 of 33
    joshajosha Posts: 901member

    Quote:

    Originally Posted by anonymouse View Post


    Android may be winning by some metric (worldwide market share?), but Android developers are certainly not winning: you can't make money selling Android apps, and, apparently, there's not much ad money to garner either.



    That's so true;  because obviously most android users are bottom end users.

  • Reply 20 of 33
    joshajosha Posts: 901member

    Quote:

    Originally Posted by mstone View Post


    What is the answer? Does Google have ads in their apps? Which ones?





    Google's SW is spyware.


    They are much less obvious in their activities than others.


    They collect info on you for their advertisers, who may send you spam Emails.

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