Nexage said app developers that use its mobile ad marketplace have seen 165 percent revenue growth in 2014. That growth rate is more than double the rate of growth of the market for mobile ads.
The revenue growth was driven by a combination of pricing and volume gains. Effective cost per mil (eCPMs), or the ad revenue generated for 1,000 ad impressions, has grown 55 percent so far in 2014 as brand ad buyers become more interested in advertising in apps. App marketers are willing to pay more for high-value users, and the result is increased competition for the available inventory of ad space in apps. Meanwhile, the volume of ads has increased 66 percent so far this year.
Boston-based Nexage released the details in its new Mobile Insights Report today. The report shows that ad inventory based on a Device ID, or the distinctive number associated with a smartphone, has become a popular way to target users with relevant ads. The eCPMs for ID-enabled ad impressions get a 67-percent premium over impressions without device IDs.
Developers can also target users based on location, resulting in more effective ads. Location-enabled impressions have a 49 percent eCPM premium over impressions without location.
Developers are also expanding their ability to display rich media and video ads, which Nexage calls high-impact ad formats. Since those kinds of ads get more viewership, the revenue associated with them is higher. Rich media-enabled ad impressions grew 346 percent so far this year, while video-enabled ad impressions grew 516 percent.
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