App developers see 165% revenue growth as demand for device ID and location data rises, Nexage report shows

App developers on Nexage’s mobile programmatic platform have seen 165 per cent growth in revenue in 2014, according to a report from the firm.

The growth is double the current market projections for mobile advertising and has been driven by increasing consumption on mobile and growing targeting capabilities, the report said.

Developers offering ID and location data are in increasing demand from advertisers, with eCPM’s for ID-enabled impressions taking a 67 per cent premium over impressions with no device ID. According to the report, marketer efforts to link screens and build more comprehensive targeting strategies is notching demand up for ID and location data. Location-enabled impressions gave a 49 per cent eCPM premium and a 131 per cent greater bid density.

Victor Milligan, CMO at Nexage, said: “The beginning of the story is that app traffic – traffic from the developers and publishers that ‘appified’ their content – together represents about 80 per cent of all mobile traffic.

“The massive app ecosystem is unique to mobile and relatively new to brand advertisers more familiar with the online world. The analyses tell us that brands and media buyers are becoming increasingly comfortable with advertising in the app ecosystem. This is not a revolution, but it does represent an important and positive shift.”

App developers are also responding to the demand for more creative and content-friendly advertising formats after interstitial-enabled ad requests increased by 194 per cent, rich media-enabled ad requests grew 346 per cent and video-enable ad requests went up by 516 per cent.

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