Mobile Video Consumption Driving Increased Ad Spend
The number of consumers who watch video on a digital device is increasing exponentially, with mobile consumption driving a lot of that growth. In 2018, according to Recode, people will spend 36 minutes on average watching mobile video and advertisers are looking to capitalize on this new trend.
“The sheer volume of mobile video consumption will push mobile video ad spending past non-mobile next year. In 2018, mobile video ad spending is expected to grow 49 percent to nearly $18 billion, while fixed online video ad spending is expected to decline 1.5 percent to $15 billion.”
From the advertiser perspective, video ads are viewed as incredibly engaging because they take full advantage of the interactivity of mobile. Video ads encourage users to interact with the mobile touchscreen, and videos ads expand to fill the whole mobile screen when playing which creates an immersive, personal user experience. Users are responding positively to video advertising experiences, and, when compared to banners and full-page interstitials, video ads show the strongest performance.
Though there are still some issues with mobile video advertising surrounding data usage and effectiveness on lower-end phone, video ads are finding unmatched success in developing markets. While a user in the US may be more exposed to TV advertising, desktop video, and mobile video during their day, users in some developing markets are much more likely to view video on their mobile device because it is one the primary mediums of entertainment. Any advertising that can enhance this entertainment experience is sure to perform well.
As more users begin to un-tether themselves from traditional TV & as many digital consumers are trading in their laptops for smartphones and tablets, many advertisers who have resisted the pull of mobile until now may also find themselves needing to build a full mobile video ad strategy.