The Next Progression in Digital Advertising: Mobile Video
February 20, 2015
So, you’ve heard rumblings of mobile video advertising and how it’s the new “hot” trend in marketing, but, if you’re like the majority, the concept is still a little fuzzy. If you find yourself weary of just how important this tactic will become in the next couple of years, consider these projections from eMarketer:
- Mobile video ad spend in the U.S. more than doubled from 2013 ($720 million) to 2014 (1.5 billion)
- The market will reach $6 billion in 2018, representing about half of the total online video ad spend
With mobile video advertising quickly becoming an emerging opportunity for national brands, the Balihoo team delved deeper in this week’s roundup to determine how and when national brands need to really start paying attention and investing.
Marcie Ellison – Marketing Manager
Think with Google: How Mobile Video Can Drive the Future of Brand Marketing
With the explosion of smartphones and digital tablets and the steady rise of internet-connected TVs, gaming system consoles, etc. consumers are – across the board – increasingly watching video content when and where they want to. As a society obsessed with technology, it comes as little-to-no surprise that mobile video advertising is growing at an impressively rapid rate. Just consider the following facts provided by a recent BI Intelligence report* on mobile advertising:
- Mobile video advertising revenue in the US will surpass $4.4 billion in 2018, up by a five-year compound annual growth rate of 73% from 2013.
- Mobile video advertising is expected to grow an impressive five-times faster than desktop: For comparison, desktop video ad revenue will grow by a CAGR of only 15% during the same time period.
There has never been a better time to get into the mobile video arena (well, unless you started yesterday).
*The full BI Intelligence report, detailing mobile advertising, can be accessed here (with subscription or free trial subscription).
Lana Odintsova – Managing Editor
TechCrunch: Why Mobile Video Advertising is Set to Explode
This TechCrunch article does a great job of outlining exactly why mobile video advertising is poised to take the market by storm. The author touches on the “obvious drivers” of expansion, i.e. continued growth in mobile devices, broadband coverage and 4G services, device screen size, and video consumption on mobile devices. However, he also highlights the less obvious drivers that relate to the way users consume video on mobile. He attributes his projections on the following data:
- In-app video inventory is more engaging and can be coupled with more data, which makes it more valuable than mobile web inventory.
- More users are watching video on tablets than on smartphones, which is another contributor to the bottom line since we are seeing that table video ad inventory is usually 30-50 percent more expensive than smartphone video inventory.
- The democratization of video production and distribution is also a key driver. Some of the most impeccable, professionally produced videos are often created on smartphone video cameras. Mobile sharing is easy and intuitive and has immediate, powerful distribution potential across multiple, viral channels.
Amanda Cash-Crowley – Demand Generation Marketing Manager
iMediaConnection: 3 Ways to Integrate Video into Campaigns
Have you ever heard of ROPO? It’s an acronym for a lifestyle trend of Researching Online, then Purchasing Offline. As smartphones become more affordable, and internet speeds increase exponentially, consumer behavior continues to trend towards researching products on-the-go, even in-store. This is just one of the trends contributing to predictions that U.S. online video ad revenue will reach nearly $5 billion in 2016. This article covers your first 3 steps to entering the digital video advertising market.
What’s truly exciting about the future of mobile video advertising is the level of targeting national brands will be able to achieve. We know that localized marketing and advertising drives higher engagement rates, and often outperform their national campaign counterparts. This tactic will serve as yet another vehicle to help brands connect with consumers at the most critical part in their purchase cycle. To learn more about how local marketing can help your brand reach your target audience with the right message, at the right team, and in the right place, visit Balihoo today.