As mobile video advertising grows and becomes a dominant marketing tool for marketers what are we learning. Where is it impacting our marketing efforts, how can we improve results, what is the message and how do we deliver it. The Page Group has been heavily involved in developing video shorts for clients over the years that deliver a message quickly and effectively to our clients consumers. This article talks about the rapid growth of this medium and what we can learn from it.
Mobile video advertising is growing three times as fast as spending on desktop video
Video is quickly becoming the dominant medium of the smartphone era.
YouTube, Facebook, Instagram, Twitch, BuzzFeed, and Snapchat videos are increasingly keeping audiences glued to their small screens, opening up new greenfield opportunities in advertising.
In this all-new in-depth research from BI Intelligence, we find that US digital-video advertising revenue from PC- and mobile-based video ads will top nearly $5 billion this year, and grow at a five-year compound annual growth rate (CAGR) of 21.9%. Total revenue will reach $13.3 billion by year-end 2020, according to BI Intelligence estimates based on historical data from the Interactive Advertising Bureau (IAB).
Here are some of the key takeaways:
- Video is quickly replacing static display advertising on desktop. Video will account for 41% of total desktop display-related spending in 2020, up from a 26% share this year.
- Video ads perform better than standard display ad units. In-stream video ads, including ads that play at the start, during, and after video content, yielded click-through rates (CTRs) that were 18x higher than HTML5 banner ad units in February 2015, according to Google’s Rich Media Gallery.
- Video’s premium status within digital is reflected in the format’s high prices. Video ads tend to cost significantly more (e.g., 2x or 3x) than non-video ad units on premium publishers like Vice and Instagram.
- Facebook, Instagram, and Twitter have all introduced new digital-video ad products. Social video offers several major advantages from an advertiser perspective, including huge built-in mobile audiences, advanced targeting, and native-style ad units.
- But despite their high prices and strong results, video ads create a special set of challenges around viewability.