Mobile Video Advertising To Grow 119% in 2014

For starters, mobile video advertising is on pace to more than double this year, making it the fastest growing area of advertising, eMarketer said in a just-released report. Mobile video ads will grow 119% this year to $1.44 billion, and that compares to a strong 26.4% growth rate for online video ads, which will generate revenue of about $4.45 billion this year. In addition, the growth rate in mobile video ads will exceed traditional online video ads on desktops or laptops. By 2018, mobile video should hit $5.44 billion in revenue, putting it close to online video’s $6.83 billion, the report said.

The reasons behind this growth are twofold. First, buyers are shifting some money from TV -- about 15% of ad buyers said they’re moving money to digital. The second is the audience. Smartphone and tablet usage are skyrocketing and as penetration grows, so does video use and ads on those devices, especially on tablets, per eMarketer.

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Mobile Video Ads Drive Higher Engagement [study]

Mobile video ads are getting higher engagement rates, based on a Jun Group study of 10.2 million mobile and online video views in the first and second quarter of 2013. Mobile video ads are clocking in with a 5% interaction rate, compared to a 2.4% rate for online video spots. That means mobile viewers are more likely to visit a brand’s Facebook page or website  to share the video. The reason? Mobile users often have fewer tabs open, so they are less distracted. They’re paying more attention to the ad in the first place, and when that happens they’re more inclined to interact in some fashion.

The research also found that mobile video ads aren’t much shorter than desktop videos. Jun Group said that 54% of mobile video ads weigh in at the standard 30-second length. About 10% are 60 seconds, and 32% are 90 seconds.

But regardless of the length, video ads fare best when they are designed for the medium on which they appear. Ads customized for the Web earned a 3.3% interaction rate, compared to 2.5% for a standard pre-roll spot. As the lines between traditional and digital formats blur, users demand something new or unique from advertisers before they click or share.-MediaPost

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