Android least valuable platform for advertisers – Opera

by: J. Angelo RacomaOctober 28, 2012

Opera, the popular browser for mobile devices, has released its State of Mobile Advertising report, in which Android as a platform is deemed lagging behind in revenues from advertising compared with arch-rival Apple. What’s even more interesting is that Android has even fallen behind BlackBerry in terms of revenue potential per user.

According to the report, iOS leads in terms of traffic and advertising revenue, at 46.37% and 58.40% share, respectively. Android follows with 25.66% in traffic and 16.79% share in revenue. But what’s interesting here is that when it comes to cost per viewer, Android lags behind Blackberry.

Apple gets a $1.64 effective CPM (cost per 1,000 impressions). Meanwhile, BlackBerry follows closely with $1.06. Android gets a measly $0.88, which is less than the BlackBerry platform.

This means that for advertisers, BlackBerry is more valuable than Android, because they earn more per eyeball. Perhaps this has something to do with the BlackBerry’s primary market, which  is supposedly enterprise. But with the emerging market starting to be the focus of RIM’s marketing campaign of late, maybe that’s about to change soon.

Here are a few other observations:

  • Mobile apps are a big earner of advertising dollars. We know that mobile users are increasingly shifting toward apps rather than mobile web. It only makes sense that advertisers should target app users, too.
  • Mobile apps have generated 73% of the ad network’s revenues. About 80% of traffic came from mobile apps.
  • Opera is set to generate $400 million in ad revenue for mobile publishers, which is a 40% growth from 2011 ad revenues.
  • Opera is quite a popular platform in emerging markets, because of its ability to reduce data charges through compression.
  • Opera says users from the UK are four times more likely to use BlackBerry devices than the rest of the world.
  • The iPhone is the single biggest source of ad traffic and ad revenue for Opera’s platform. However, the iPad gives the most value for advertisers, at $4.42 e-CPM.

You can check out the full report at the source link. One concern here: as an end-user, does it matter to you whether you’re more valuable than users from another platform, from an advertising perspective?

  • Completely misleading use of this data in the conclusions being reached. To use Opera’s highly renationalized chunks of data to reach global conclusions is little absurd and I’m frankly quite surprised that this isn’t more apparent. Some platforms like iOS are highly dominant in some locations, just as Android is in others. The end result is a dramatically skewed global average that doesn’t reflect accurately on any of the platforms included in this report – including even RIM’s BlackBerry. I’m in the growing camp of developers and advertisers who think Android is where the real money momentum is right now. Why do we feel that way? Because of our own results. In September, I was one of several just in my small circle of industry friends who pretty much pulled the plug on inMobi and any place where were focusing any attention on iOS. My bank account was fattened most by Airpush – a mobile ad network for Android and Android only! Despite Opera’s data portending gloom and doom for Android, Android is actually where the growth and money are most obvious today! If anyone sees otherwise, I welcome that debate!

    • observer

      Forgive me if I am wrong.
      I think the Android system is great but I was discussing with someone weeks ago the ease at which apps on the android system can be pirated. She seems to think that because they can be pirated it makes Android a better OS but in reality this would only make it better for the consumer when producers of apps or mobile advertisers would be more likely to focus on other systems such as iOS. Not wanting to start an argument but just get you opinion.

      • Scott Wilson

        It’s pretty easy. Not anywhere near as easy as it is to pirate hundreds of dollars worth of apps by jail breaking iOS (also much easier) and installing Cydia, which any 9 year old kid can do from a website, but it is getting easier. IOS just has a huge head start on piracy, and all the most talented pirates.

  • Scott Wilson

    There’s also the fact that nobody uses opera on Android because it sucks compared to the stock browser, chrome, and dolphin. That is probably skewing their numbers some. I’d imagine their visibility into the most popular mobile OS in the world (70 percent market share ) is severely limited. They are also probably pretty butthurt.

  • MasterMuffin

    Nobody uses opera, it’s so slow and ugly :)