Mobile traffic monetization: challenges and solutions


Discover all latest facts & figures on the mobile advertising industry and it’s monetization challenges in our new article and infographic

Mobile is finally in the center of the strategic vision of the global internet economy, both hardware and software vise. But smartphone and tablet penetration also boosted the volumes of mobile data traffic, urging the telecommunication market  to move rapidly toward data services. Let’s take a closer look at some of the latest mobile data traffic statistics, with its arising opportunities and challenges.

Mobile data traffic: facts & figures

The latest statistics gathered in the Ericsson Mobility Report show the pace of this growth: mobile broadband subscriptions grew 35 % year-on-year, reaching 2.3 billion, while close to 65 % of all mobile devices sold in Q1 2014 were smartphones. These factors combined caused naturally the increase in the amount of data usage per subscription that resulted in 65% growth in mobile data traffic between Q1 2013 and Q1 2014.

But how “heavy” is mobile traffic data? According to Cisco, mobile traffic in 2013 alone, generated 1.5 Exabytes[1] of data per month (1 Exabyte is 1 billion gigabytes), that was 18 times more than all traffic across the global Internet in 2000. The predictions bring more incredible numbers:  by 2018 mobile data traffic is expected to reach an annual run rate of 190 Exabytes!

There are several reasons that fuel this incredible growth, aside the devices penetration. Important positive boost comes from the 4G technology, that is faster and higher performing, and it encourages the use of advanced, multimedia apps. Today 4G connections represent only 2.9% of all mobile connections but they already account for 30 % of all mobile traffic. The Cisco report estimates that mobile 4G connections will grow from 203 million in 2013 to 1.5 billion by 2018.

Traffic market share: global overview

The latest analysis State of mobile advertising by Opera brings very interesting data for the first quarter of 2014. When it comes to traffic share, Android is the market leader, accounting for 42%, while iOS takes 38% of the market. On the other hand, when it comes to monetization, Android with 33% is still tailing iOS, that accounted for 52% of revenue share.

If we take a closer look at the Android device market, Samsung is leading among the device manufacturers, with the 60%  of impressions, followed by LG with 11% and Motorola with 5%.

First quarter of 2014 brought some interesting changes in the top app and site categories. The Social category still leads in mobile ad traffic volume, but the Arts & Entertainment category displaces Music, Video & Media from the leading position as a revenue generation. When it comes to the highest revenue per impression, the Business, Finance & Investing category is firmly holding its top position for over a year now.


How to monetize mobile traffic: Neomobile’s solutions

Even though all of the figures are positive, mobile traffic is experiencing much harder marketing conversions, when compared to PC and desktop. The volume of mobile traffic continues to increase dramatically, but monetizing smartphone users’ activity is still a challenge for publishers. What are the possible solution for this mismatch between the growth in mobile usage and mobile monetization?

Here in Neomobile we are keeping track of all new trends and initiatives by both operators and publishers, and thanks to our business intuition and “pure mobile” nature of our company we have created advanced mobile traffic monetization solutions based on carrier billing.

On one hand, our offer is focused on content distribution directly to the end user based on a Subscription model. The secret of success lies in 3 key factors:

  • global offer with deep local markets knowledge
  • seamless “one-click” flow as a best converting model
  • targeted traffic, that give numerous benefits for publishers

On the other hand, we empower mobile merchants to monetize their products and services through carrier billing integration, relationships with operators  and of course the local market support and advisory.

Neomobile’s offer has one more important asset: focus on Android. Google’s OS is dominating global mobile market in terms of market share, but also in terms of the AD monetization, while iOS stays strong in terms of In App monetization.

For both operators and publishers the challenges of mobile traffic are continuous. The operators strive to satisfy the global “hunger” for mobile broadband connections, while publishers try to discover better and more intuitive ways of advertising, such as location based and context Ads. One thing is sure: if you have mobile traffic but not sure how to monetize it, you’re in the right place!

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[1] The exabyte is a multiple of the unit byte for digital information. The prefix exa indicates multiplication by the sixth power of 1000 or 1018 in the International System of Units (SI). 1 EB = 10006bytes = 1018bytes = 1000000000000000000B = 1000petabytes = 1millionterabytes = 1 billion gigabytes (source Wikipedia)