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Mobile Video Advertising Explained

Mobile Video Advertising Explained

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According to Gartner, $13.1 billion was spent on mobile advertising worldwide in 2013 with 25% alone going to Facebook. In 2014 mobile video is one of the fastest growing segment of mobile advertising spend, so it’s no wonder that Facebook is also rushing to add video ads that autoplay on news feeds. Facebook estimates that mobile video represents an additional one billion dollars of top line revenue growth for its business.

The traditional 30 to 60 second video ad format has been helping marketers move their advertising budgets from TV, which has shrinking audiences, to programmatic digital video ad buying and online content hubs such as Hulu. However on mobile, measurement studies show that video ads that are 15 seconds or less perform the best for completion rates. Companies such as TubeMogul, a video DSP, are helping enable video inventory access all channels including display pre-roll, in-banner (user-initiated), social, mobile, tablet and connected TVs.

Technical factors such as encoding, resolution, bit-rate, and video delivery streaming are less of a hurdle as the mobile video market has largely simplified these issues and our personal mobile smartphones are more capable than ever as mobile entertainment devices. Clicks, time spent with view rate percentages, and number of completes are fairly standardized video measurements, but savvier mobile video advertising metrics also include local call-to-actions such as navigation. Leveraging mobile location data is also being used to dynamically personalize video content. If you’re in San Francisco, it’s likely to see a Golden Gate Bridge in a video pre-roll, as well as local retail information about where to purchase products in-store.

Today’s top mobile video ad companies include market leader AdColony, who says its mobile video ad platform has reached $100 million in gross revenue; InMobi’s recently relaunched video ad networkTremor Video, who’s coming off its successful IPO; and Vungle for in-app video advertising. Traditional video display companies such as YuMe do have some mobile offerings for their publisher network, as does Google AdWords, which supports video but is not the only market leader in mobile.

Watch for the rapidly streaming mobile video ad space to continue to grow in 2014 as marketers and consumers are more open than ever to new types of engaging mobile content.

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