Mobile Video Will Outshine Web Video
Mobile advertising is taking off
By: Markus Bäckström
Sep. 3, 2012 02:00 PM
Smartphone penetration in the US recently passed the 50 percent mark and it's a similar story in Europe. There are now nearly 110 million smartphone owners in the US alone, according to comScore. The tablet market is also growing fast and mobile devices are claiming an ever-greater share of overall web traffic. The average amount of content people consume on their smartphone or tablet every day is rising steadily. Wi-Fi and network improvements are making streaming video a reality for us all.
Mobile Advertising Is Taking Off
Estimates on in-app mobile advertising for this year are around $2.4 billion but a recent report from Juniper Research is suggesting that figure will grow to $7.1 billion by 2015.
While advertising on mobile devices clearly represents a big opportunity, many companies are uncertain about how to proceed. Any campaign on a mobile device has to be tailored to the technology for a good user experience. It has to be suitable for a smaller screen and it should encourage a click-through call to action. Ads should always be as relevant as possible if you expect consumers to engage.
Building Consumer Trust
First, ads need to engage the viewer. A recent Medialets study showed that mobile ads with video recorded 35% higher engagement rates. Currently only 30% of mobile ads on tablets and 12% on smartphones contain video. Combine a video element with some form of interactivity and engagement rates are dramatically increased. One of the largest providers of digital video advertising services BrightRoll, is predicting that the mobile video ad market will overtake the online video ad market this year. Its CEO Tod Sacerdoti has said the number of global mobile ad requests handled by his ad network grew 4000% last year.
Second, ads need to be served in the right context. If an ad relates well to the app it is being played within, then it's more likely the consumer will watch it. Take that one step further and consider that you can identify your audience and even their location through a mobile device. The possibility for serving a targeted ad to exactly the potential customer you want is definitely there.
Mobile Video Will Grow and Grow
Consider the size of the potential audience right now and bear in mind that the smartphone and tablet market is still growing. The technical limitations in terms of hardware and software are gone. Mobile video ads are significantly outperforming online video ads in terms of retention and completion rates. As more and more people consume video content on their mobile devices, not just short form content, but full TV shows and movies, their willingness to watch full screen ads can only rise.
The strength of a video ad that can include an interactive element or a call to action should not be underestimated. A simple tap by the user at the end of the video could take them straight to a Facebook campaign or e-commerce page, for example. That's something that traditional TV can't compete with, not even close.
If you want to engage consumers on mobile devices then the answer is clear - it's time to use video.
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