Weekly Recap: Google Tackles Bad Ads, In-App Revenues, and Where CPM’s Stand
Google Chrome Will Throttle ‘Resource-Heavy Ads’
Following the Better Ads Standards update, Google has announced a plan to address ads that fall into the ‘unacceptable’ category. “We have recently discovered that a fraction of a percent of ads consume a disproportionate share of device resources, such as battery and network data, without the user knowing about it,” -Marshall Vale, a product manager at the Chrome team.
In order to save our users’ batteries and data plans, and provide them with a good experience on the web, Chrome will limit the resources a display ad can use before the user interacts with the ad. When an ad reaches its limit, the ad’s frame will navigate to an error page, informing the user that the ad has used too many resources.
Google’s Chrome team has shared a list of measures advertisers and publishers can take in preparation for the August update which could result in ads being removed from their site
In-App Revenues Increase 8% in May
In-app revenue rise continues as usage remains high and installs drop with consumer spend in apps increasing a further 8% this week. It has been on the rise since week 4 (Mar 17-23), growing 36% to date thanks to heightened usage (sessions).
On top of that, about 60% of app categories in the US and EMEA have seen a revenue uplift in the last two weeks, while in APAC and LATAM numbers were lower at 50% and 45%, respectively.
Appsflyer also noted that gaming monetization has reached new heights. In fact, revenue in Gaming apps has increased by 37% since week 4, with a further 16% jump this week alone. Gaming app marketers were extremely active during the second of March, and are now reaping the rewards. Since then, their UA activity decreased by over 20%.
Where Programmatic And Social CPMs Stand
A report by Omnicom Media Group has revealed that CPM has declined for advertisements across programmatic and social channels.
The report found that programmatic display CPMs are down 40% (below $2) since early March, but premium video CPMs, which include CTV, are down just 5% (roughly $21).
Display CPMs have retracted due to supply fluctuation, but premium video CPMs aren’t as affected since most deals are transacted on a fixed-price basis. For Omnicom, this applies to about 90% of CTV buys and 65% of all premium programmatic video buys.
The social picture: On social, pricing varies based on ad formats and campaign objectives. Since early March, CPMs are down between 20% to 40% on average across Facebook, Instagram, Snapchat, Pinterest and Twitter,