At the end of the first quarter of 2013, devices running Apple iOS received 75 percent of total mobile ad spend share, despite the large volume of Android devices on the market.
The news comes from a MoPub Mobile Advertising Marketplace Report, which reveals that “iOS [is] dominating Android.” The report looks at data from the MoPub Marketplace, a real-time bidding product the company calls the world’s largest mobile advertising exchange. The data comes from 45 billion monthly ad impressions.
The Growth of iOS During the Quarter
Over the quarter, monthly ad spend share on iPhone grew 12.4 percent, which now accounts for 50 percent of total ad spend in this exchange. That’s more than two times the share of Android phones. When iPhone’s ad spend is combined with iPad and iPod Touch, the share of iOS climbs over 75 percent at the end of the first quarter.
This is despite the fact that over 50 percent of phones in the U.S. run Android. iPhone’s share of the market varies depending on the source, but a recent Time report posts data from two studies that put the range at between 37.8 percent and 43.5 percent.
Another surprising fact is that Android tablets are essentially a non-factor at this point, accounting for less than 1 percent of ad spend share even though tablets running Android represent 42.7 percent of the market.
The Origin of Apple’s Dominance
It is important to note that these numbers fluctuate frequently and that Android was seen as gaining ad spend share throughout the fourth quarter of 2012. However, much of Apple’s stronghold stems from the reality that iOS users are seen as more attractive to ad buyers.
Because many Apple iOS users have iTunes accounts connected to a credit card, they are more likely to make purchases on a mobile phone. However, some of Android’s late 2012 gains were attributed to buyers purchasing high-end devices such as the Galaxy S and the Note.
Mobile Ad Spending Trends to Come
MoPub speculates that ad spending momentum will continue into the next quarter and beyond. Although ad spending was down in January and February, March surpassed spending totals from 2012’s fourth quarter, leading to speculation that a continuation of this trend is likely.
Another cause of this increase is mobile advertisers’ changing approach to ad spending. The report points to four events during the first quarter that saw significant spikes in ad spend: the Martin Luther King Jr. holiday, the Super Bowl, an extreme blizzard and President’s Week. It’s no surprise that those pre-planned events saw spikes, but the blizzard indicates that media buyers are becoming more opportunistic based on real-time events and user behavior.
Leveraging ad strategies with user insights will likely be the way of the future, as well as a significant factor in increased mobile ad spending.
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