5 Trends That Define The State Of APAC Mobile Advertising In Q2 2015

State of APAC Mobile Advertising from Opera Mediaworks states that smartphone use continues to grow at a pace on par with the rest of the world. Listed are 5 trends from the report

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Global mobile advertising data from Q1 2015 showed Android not just leading in traffic, but even on revenue by holding a 45.8 percent share of total revenue generated on the platform. This was revealed in May by the State of Mobile Advertising report by Opera Mediaworks.

In the latest report by APAC State of Mobile Advertising from Opera Mediaworks, in partnership with the Mobile Marketing Association, smartphone use in the Asia Pacific region continues to grow at a pace on par with the rest of the world, with page-view volume on mobile websites and apps approaching global averages. The findings in the report are based on Q2 2015 data from 400 million unique users on the Opera Mediaworks platform.

While much of the growth and adoption of mobile advertising has been fueled by the strength of the mobile ad market in Japan, Korea and China, significant growth has been in the four countries – India, Indonesia, Philippines and Vietnam. In the report all the four have been grouped into a sub-region called The Power 4, or P4.

The demographics for the P4 when it comes to average age it runs from 21 in Vitenam, Philippines to 24 in Indonesia. Males dominate the user division in all the countries except Philippines where the male-female ratio is 54.5% – 45.5% respectively.

APAC_Mobile_Demographics

According to the report findings, Vietnam and Indonesia have a higher percentage of high-frequency users than the global average, while India and the Philippines contain more low-frequency users. Interestingly, the “regular” frequency group for the P4 are all similar in market share and are also quite close to the global average.

1. The Power 4 – India, Indonesia, Vietnam and Philippines

India, Indonesia, Vietnam and the Philippines, countries which Opera refers to as the “P4” (Power 4) sub-region, has seen a dramatic 545% increase in smartphone adoption since 2013, making it one of the fastest growing sub-regions in the world.

APAC_Opera_Mobile_Report

The P4 countries represent less than half (43%) of the population of Asia, account for less than 30% of regional internet users — yet over 76% of these users access the internet via mobile. For India, Opera estimates that 77% of internet users can access the web via a mobile device.

Compared to global averages, use of mobile websites and apps tends to be lower in the P4. However, this sub-region is on par with the rest of Asia, and both the Philippines and Indonesia exceed the global average for page views consumed per user.

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Vietnam trails the average volume of page views by a significant margin, but it has a sizable lead in data consumption, with each user in Vietnam using 85 MB per month – very close to the global average of 90 MB/month.

2. Android and Other OS makers dominate the market

Android still dominates the market, driving the lion’s share of impressions globally, regionally (Asia) and also within the P4. In fact like the last quarter, globally Android continues to lead in revenue generation over the second place iOS, with the gap remaining less than one percentage point (47.66% vs. 47.16%). Android is also the leader in traffic, as measured by impressions.

Android_Impressions_APAC However, due to the continuing presence (and large market share) of “Other” devices, which monetize at lower rates, the Asia region and the P4 both fall below the global averages for monetization potential, or the ratio of money earned to impressions served. The P4 ratio of percentage of revenue to percentage of impressions is 0.47:1, just under that of APAC (0.49:1).

Asia region and the P4 have a much higher percentage of “other” devices (i.e., those with operating systems other than iOS or Android) than the global user base.

OS_Platforms_in_APAC

These devices tend to monetize at lower rates than Android or iOS, and they also tend to drive fewer impressions per user. However, in Asia – and more specifically, in the P4 region – these devices do drive a significant number of impressions.

3. Demand for Mobile video

Globally, there has been an increased demand for and rapid adoption of mobile video-ad units. Oceania was the top market for relative interest in video advertising, driven by world leader Australia. Japan, Germany and Canada also have a high interest in mobile video ads.

Mobile_Video_Advertising_APAC

Within the P4 region, the Philippines has the highest ratio of video-ad impressions compared to the volume of all impressions served in its market, and it also exceeded the expected global standard (ratio of 1:1). Both India and Vietnam exceeded the average across all of Asia (0.41:1).

4. Social Networking is far more popular in the Philippines

Social Networking is far more popular in the Philippines than other markets, but interest in other categories wanes, particularly for News. Indonesians also top the global average for Social Networking use, but far outpace the rest of the world when it comes to consumption of Business content.

Mobile_app_usage

Vietnam shows a strong preference for News. In India, mobile users are visiting more sites and apps in the Music, Video, Media & Entertainment and the Technology & Computing categories than the average global user.

5. Business, Finance & Investing sites and apps rule revenues

On a global level, Social Networking is the top category in terms of total mobile traffic, as measured by impressions. This holds true as well in the P4 region. However, when it comes to revenue, there is a big difference. Globally, Social Networking leads in total revenue generation, but in the P4 region, Business, Finance & Investing sites and apps are the clear winner. They are responsible for nearly 42% of the revenue paid to publishers across the P4 sub-region.

APAC_Mobile_revenue_breakdown

Additionally, Business, Finance & Investing publishers fared well, accounting for a whopping 42% of revenue paid to mobile publishers across the P4 region.  In India, Social Networking sites and apps provided the highest number of impressions for advertisers, followed by News & Information and Sports category. However, the highest eCPMs were earned by News & Information publishers.

The impressions of advertising on Communication Services is much higher than global average by and as much as 15x higher for revenue.