New analysis demonstrates the impact of big data and algorithmic trading on mobile advertising

Mobile Real-Time Bidding (RTB) shown to increase Click Through Rates (CTRs) by an average of 97 per cent when compared to non-RTB methods of buying

Programmatically traded mobile ads now dominate: since May 2012 RTB ad impressions have risen from 28 per cent to 60 per cent of the total across Adfonic’s platform

Press release

January 15th 2013. Adfonic, the smarter buying platform for mobile, today releases its ‘AdSnap: Mobile Real-time Bidding (RTB)’ report, which compares the results gained through mobile RTB – the programmatic trading of mobile ads based on algorithms – to non-RTB methods of running mobile ad campaigns.

RTB works in a similar way to stock exchanges and online auction sites, using big data and smart algorithms to determine the best mobile sites and apps for a campaign based on goals set by buyers.

The comparison, based on billions of ad impressions from across Adfonic’s platform, reveals that algorithmic trading of ads increases ad click through rates by an average of 97 per cent.

For some advertiser verticals such as Style and Fashion, the uplift is 231 per cent, showing that the algorithmic trading approach of RTB is highly effective at finding the right ad impressions for the right audiences.

Adfonic’s AdSnap also found that mobile RTB improves CTRs around the globe.

Mobile RTB ads in the UK and US are among the best-performing.

They typically attract around twice as many clicks for the same number of ad impressions as mobile ads bought through non-RTB methods.

A simple chart can demonstrate the propensity of publishers to open their inventory up to programmatic buying.

Publishers benefit from mobile RTB because they only have to supply data once, to be accessible to all buyers across an exchange.

This incentive works: the AdSnap analysis shows eCPMs for publishers are 64 per cent higher on average when compared to non-RTB.

RTB with rich media is a powerful combination

Rich media mobile ad formats include elements that users can interact with, for example by swiping or tilting their mobile devices, and encourage users to engage with brands.

According to the AdSnap analysis these formats prove to be 65 per cent more effective in terms of clickthroughs than standard banner ads.

But when combined with the data-driven targeting of RTB they are on average more than twice as effective at generating CTRs for advertisers, achieving a 218 per cent uplift compared to standard banners.

Wes Biggs, Chief Technology Officer, Adfonic, commented, “In the mobile advertising world everyone is focused on how we can make ads more relevant and effective, especially as mobile advertising is experiencing explosive growth. ”

“The challenge is considerable when dealing with billions of user interactions on a daily basis.”

“The introduction of sophisticated algorithms which analyse huge data volumes is not only essential to keep up with this growth, the results prove that, through them, we can execute more effectively on behalf of our buyers.”

The full AdSnap: Mobile Real-time Bidding (RTB) report can be obtained for free here.

About Adfonic

Adfonic is the smarter buying platform for mobile. It offers advertisers and agencies a smarter way to buy mobile inventory with the widest possible access to global mobile web and app inventory – over 100 billion global ad impressions each month through a single buying point. It brings together the best people, the latest tech, the fastest algorithms and the biggest data. This is why its mobile advertising formats, performance metrics and dedicated agency console give customers better results with more control. Adfonic provides a truly global offering supported by local offices in London (HQ), Madrid, Munich, New York, Paris, and Singapore.

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