July, 8: Programmatic, China, Mobile Video, CPI, A2P etc.
Weekly Mobile Marketing News Digest by Clickky

1
80% of all digital advertising spending projected to be programmatic by 2018

July 4, 2016
Around 70-80% of all digital spend will be programmatic by 2018. The share of programmatic mobile ad sales was found to having doubled from 37% in 2013 to 64% in 2014. 40% of mobile display ads were sold programmatic-direct and 24% through programmatic exchanges in 2014. Just 30% were sold directly. A fifth of video ads are also traded programmatically. This only proves the growing popularity of the ad format. He estimates that around 70-80% of all digital spend will be programmatic by 2018.
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2
43% China mobile payment users are 21-29 years old in top cities
July 5, 2016
China users in 21 to 29 age group from the first-tier and the second-tier cities are the main mobile payment users, accounting for 43%, followed by users in 30 to 39 age group (30%). Most  mobile payment users use WeChat and Alipay. 60% respondents use Alipay to pay for daily bills, while 17% respondents use WeChat. 56% respondents use Alipay to pay for financial business; only 14% use WeChat. Although mobile payment is becoming a trend, it is somewhat popular in the first and the second-tier cities for now.
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3
Mobile video growth driven by desire to reach new ad audiences
July 6, 2016
Mobile video revenue is set to hit $25bn by 2021. The Global Mobile Video Forecast: 2010-2021 report also finds that mobile video users will more than double to 2bn users by 2022. That’s a 36% penetration among global mobile users. In 2010, advertising made up just 2% of mobile video revenue. Since then, it’s shot up to 40% in 2016 and is poised to reach 66% by 2021. Advertising spending on mobile video will grow at a 28 percent CAGR in the next five years.
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4
Resurrection of the tablet – Mobile video consumption driven by tablet views
July 5, 2016
According to the Q1 2016 Global Video Index from Ooyala, 18% of all views now coming from tablets. Mobile devices accounted for 55% of all Subscription Video on Demand (SVOD) views. Smartphone users still prefer to view shorter content (66%). Brands are expected to spend over $114bn more on mobile ads by 2018 compared to PCs. Interestingly, views on tablets have continued to increase, up from 12% in Q3 to 14% in the first quarter of this year. The report suggests that it is tablet consumption which has driven overall mobile viewing.
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5
Mobile phone market continues to grow in Mexico
July 5, 2016
The mobile phone user base in Mexico has grown by 9 million users from 2012 to the first quarter of 2016, according to data from GSMA. At the same time, population penetration has deepened, from 65% in 2012 to 69% in Q1 2016. GSMA estimates that there were 52 million of smartphone users in Mexico in 2015, a figure set to rise to 91 million by 2020; as of last year, smartphones made up 50% of all mobile connections, but by 2020 will make up 70%.
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6
How much are advertisers ready to pay for installs? Clickky CPI Index 
July, 2016
Clickky CPI Index shows the current state of market demand for different countries and categories (accumulated May’16 data from 186,187 Android and 29,936 iOS ad campaigns). Over the period of May-April 2016 Argentina again showed the greatest change with an iOS CPI gap up to -$0.79 (e.g. the average iOS CPI in April-March was +$0.67). CPI in each category varies greatly for different countries. E.g. Android Business CPI is $1.7 in USA and $1.04 in Canada. In APAC countries, iOS Social CPI is $2.14 in Japan and $0,32 in South Korea. Within each country, there is a great CPI difference between platforms for some categories. E.g., in Italy the CPI for Games is $2.27 for iOS and $0.81 for Android.
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7
Mobile video ads outperform other ad formats, deliver 11x higher eCPMs
July 5, 2016
Global ad spend on Smaato platform increased 89 percent from Q1 2015 to Q1 2016. The Americas had the 123% ad spend growth, at percent from Q1 2015 to Q1 2016. The Americas were followed by APAC (+65%) and EMEA (+32) ad spend growth year-over-year. Arts and entertainment apps accounted 52% of total ad spending. Music apps accounted for 59% of ad impressions in the arts and entertainment category in Q1 2016. Mobile video ads compared to traditional ad formats (like text and image ads) delivers 11 times higher eCPMs for publishers, at a 1,042 percent uplift.
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8
The A2P messaging market could hit $58.8 billion in 2020, says new report
July 7, 2016
The A2P (Application-to-Person) messaging market was worth $12.9bn in 2015. The market is poised to reach $58.8bn by 2020 driven by mobile operator investment into next-generation SMS revenue assurance platforms to unlock white-route messaging. Grey-route traffic is costing the industry hugely, with a total predicted $82.1bn of potential cumulative revenue lost on mobile networks between 2015-2020. Average revenue per subscription is forecast to rise from $0.15 per month in 2015 to $0.55 by 2020 with the proportion of revenues from white-route traffic increasing from 74% to 96. Nevertheless, converting the remaining grey-route traffic to white would see total revenues of $70.14bn in 2020 and average revenue per subscription rise to $0.66 per month.
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9
Chinese game developers aren’t happy about new censorship rules
July 8, 2016
China announced a rule that meant all games had to be pre-approved by SAPPRFT before going live. SAPPRFT has also allowed a three month grace period in which existing games must be submitted and post-approved. According to Techweb in China, fairly generic English gaming words like “mission start”, “warning” and “boss” were used and therefore deemed unsuitable by the censorship bureau. According to reports, other developers also had games denied for the same reason, while traditional Chinese character were also being banned. Others were complaining that the process was taking too long.
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10
Mobile wallets — and mobile purchases — on the rise in India
July 8, 2016
Mobile purchasing will also make up 70% of digital purchases by 2020. In 2015 nearly 60% of digital purchase payments in India were made via cash on delivery (COD), a May 2016 report forecasts that this share will fall to 45% by 2020, primarily dude to buyers’ expected embrace of mobile wallets. Mobile wallets are set to grow the most, nearly doubling from 8% of purchases in 2015 to 15% by 2020. By 2020, males will transact 58% of all such purchases, with females jumping more than 20% to 42% of all purchases.
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