Mobile advertising budgets and app install campaigns are growing significantly, projected to increase from $195.6 billion in 2013 to $133.7 billion in 2015. Quality of users, not just quantity, is becoming a key performance indicator for app install campaigns. Top developers are also expanding their localization efforts and number of geographic regions targeted for app installs. Major advertisers are consolidating with fewer top-performing partners. Traditional advertising channels like television, out-of-home, and print are seeing increased investment from app developers. Within mobile channels, video advertising is considered the most effective and exciting format.

1. July 2015
Top 10 UA Trends

2. 2013 2014 2015 2016 2017 2018 2019
$195.6 B
$166.6 B
$133.7 B
$101.4 B
$68.7 B
$42.6 B
$19.2 B
Mobile Advertising Budgets Are Growing
2
Top advertisers increasing app install spends with 47.2% CAGR projected through 2019.
eMarketer US Mobile Video Advertising Report - June 2015 and AdColony Spring 2015 Top 100 Grossing Developer Survey
30%
70%
Increasing Not Increasing
App Install Budgets US Mobile Advertising Market

3. Quality Over Quantity
Quality is king as an app install campaign KPI.
3
Source: AdColony Q1 2015 Top 100 Grossing Developer Survey
60%
70%
80%
90%
100%
96%
82%
81%
78%78%
Targeting
Service
Price
Volume
Quality of User
Q: How important is each of the
following in terms of evaluating
ad network and UA campaign
performance?

4. App Install Campaigns Continuing to Become More Global
Top grossing developers are taking over the world for app installs.
4
Source: AdColony Q1 2015 Top 100 Grossing Developer Survey
17%
83%
Localize Assets Don’t Localize
42%
15%
42%
10+ 5-9 1-4
41%
59%
Increasing Geos Maintaining
Expanding Geos in 2015 Localization Regions Localized For

5. Consolidation is Underway
Top advertisers are relying on fewer, top performing partners.
5
Source: AdColony Q1 2015 Top 100 Grossing Developer Survey
9%
30%
61%
Consolidating Neutral Not Consolidating
2015 Mobile LumaScape

6. Growth in Traditional Media
Television, out-of-home and print all growing.
6
Source: AdColony Q1 2015 Top 100 Grossing Developer Survey
TV Out of Home Print
7%
15%
35%
2%
6%
22%
Jul'14
Jan'15
Top apps are becoming
franchises and are being
supported with ad spend across
traditional marketing channels.
As on-device marketing becomes
increasingly competitive,
developers are looking are more
traditional off-platform marketing
opportunities

7. Channel Excitement
7
Video is Most Effective and Exciting
Mobile video ads rank #1 in UA effectiveness against campaign objectives
Source: AdColony Q1 2015 Top 100 Grossing Developer Survey
98%
93%
72%
37%
32%
28%26%
19%19%
13%
Free App Networks
Offer Walls
Playable Ads
Native Ads
Display (banners)
Direct Deals
Cross-promo
Display (interstitial)
Social (Facebook)
Mobile Video Ads
50%
22%
9%9%
2%2%2%
4%
Other
Out of Home
Interstitials
Banners
Television
Playable Ads
Social
Video
Channel Effectiveness

8. 2013 2014 2015 2016 2017 2018 2019
$6.9 B
$6.0 B
$5.1 B
$3.9 B
$2.6 B
$1.5 B
$0.7 B
Video is Exploding
8
Top advertisers increasing campaign spend in video, with a
52.61% CAGR projected through 2019.
eMarketer Worldwide Ad Spend March 2015 and AdColony Spring 2015 Top 100 Grossing Developer Survey
6%
13%
81%
Increasing Neutral Not Increasing

9. Video is Expanding
9
Top advertisers utilize a mix of full
screen 16x9 and in-feed 4x3 video.
Q1 IN-FEED VIDEO GROWTH

10. Trend Toward Shorter Format Video
10
:10 :15 :20 :25 :30
INSTALL RATES
20-22 seconds is ideal for full-screen video, 6-8 seconds for in-feed.
CTR
:15 :20 :30 :15 :20 :30
CVR

11. Methods Used
Data is Exploding
Top advertisers rely on look-alike modeling with mixed interest in retargeting.
11
Source: AdColony Q1 2015 Top 100 Grossing Developer Survey
Look-Alike Retargeting Not Effective Neutral Effective
Look-Alike Effectiveness
Not Effective Neutral Effective
Retargeting Effectiveness

12. Thank You