Mobile digital video advertising is the future

Posted on Posted in business strategy, customer aquisition, operational finance

Video is quickly becoming the dominant medium of the smartphone era.

According to the recent study by BI intelligence, US digital-video advertising revenue from mobile-based video ads will top over $1.2 billion this year, equaling ca. 25% of the total video advertising revenue. That figure is expected to grow at a five-year compound annual growth rate (CAGR) of nearly 40%, reaching $6.5 billion in year 2020 (or ca. 49% of total video advertising revenue).

Overall surge in digital-video advertising is driven by the simple fact that video ads are more effective than standard display ad units. Google's Rich Media Gallery estimated that in-stream video ads (including ads that play at the start, during, and after video content) yielded click-through rates that were 18x higher than HTML5 banner ad units.

Social-networking sites are best positioned to be the biggest gainers of this trend, as they already have huge built-in mobile audiences, advanced targeting, and native-style ad units.

written by Oleksiy Nesterenko