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App marketers are only slowly adopting in-app header bidding technologies despite proven advantages @ Business of Apps

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Just 31% of app marketers are utilizing in-app header bidding solutions, whilst the majority (57%) is still using waterfall-based systems where ad opportunities are presented to advertisers in sequential order.

However, waterfalls tend to come with a range of issues including latency and high costs which render them less effective than in-app header bidding.inmobi1

Indeed, the latest survey by InMobi highlights that by using waterfalls ad revenues tend to remain the same for 32% of respondents, whilst 24% did not even track their performance.

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Another 43% said they used real-time bidding strategies, signalling a move away from waterfalls over time.

According to the new InMobi survey, 52% of app marketers said they currently had a mediation partner.

However, among the reasons why waterfalls have survived this long is because app publishers aren’t aware of the alternatives. 40% of marketers said they had a limited or moderate understanding of in-app header bidding. Another 59% of respondents believe that header bidding is not advanced enough just yet to resolve issues related to waterfalls.

However, a limited understanding (31%) and implementation issues (23%) were the core reasons for preventing publishers from adopting in-app header bidding solutions.

inmobi3Among those who did utilize in-app header bidding solutions, 36% had seen their revenues improve, whilst 49% were expecting to see gains over the coming 12 months.

In addition, 38% said it reduced latency, whilst 37% found the technology to provide better transparency on impressions and bids.

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The survey also noted that publishers were now using in-app header bidding for banner ads (67%), interstitial ads (52%) and videos (47%) among other types.

When it comes to finding the right in-app header bidding partner, brand safety ranks as a top priority for 39% of respondents, followed by transparent auction dynamics (19%).

Despite in-app header bidding holding much promise, InMobi expects it may still take a while for the technology to catch on.

Source: Business of Apps