Mobile video ad market is growing like an avalanche

    The mobile video market, and therefore the associated advertising market, is growing day by day. However, until recently, it was a stable, almost linear growth, which is now moving into exponential growth. In the United States alone, over the past year, the mobile video advertising market has doubled, from $ 720 million in 2013 to $ 1.5 billion in 2014. According to eMarketer experts , already in 2018, the volume of this market will increase up to 6 billion US dollars. This will be approximately half of the entire online video advertising market.

    An increase in the number of mobile devices, coverage of mobile operators and 4G services, an increase in the screen of mobile devices leads to an increase in the consumption of video content on mobile devices. Now consumers of mobile video content are watching videos not just on sites, but in the corresponding applications of various services. At the same time, the share of video views on tablets is greater than the share of views from other types of mobile devices. Moreover, viewing an advertisement by a user on the planet is more expensive for an advertiser (by 30-50%) than viewing an advertisement on a smartphone.

    An important role in the growth of the mobile video advertising market is played by a kind of democratization of the production of this type of content, as well as an increase in the number of available ways to distribute content. Some videos and even films are shot by private users, using the camera of a regular smartphone or a camcorder. Thus, a new niche appeared on the market, which was occupied by Saizdat. At the same time, any user can share a good video with his colleagues, friends and acquaintances, which leads to an increase in the popularity of "home-made" videos, rather than professional studio works.

    This further enhances the capabilities of advertisers, and increases the advertising market in media content. True, most brands still prefer to place their ads in premium content rather than “samizdat” videos, but the opposite trend is also gradually appearing.

    Of course, in a situation where everyone can shoot their own videos, the number of videos with children, cats, family celebrations is growing rapidly - and in such content few will agree to place their ads. At the same time, the number of very high-quality user materials is increasing, which contributes to the transition of advertisers to relatively new categories of media content.

    Some media networks like Maker Studios (purchased by Disney) and Fullscreencontribute to increasing the generation of high-quality video content that is suitable for brands. New platforms, for example, Vessel , which are created mainly for smartphones and tablets, also show themselves .

    Major publishers such as Yahoo and AOL also understand the potential of the new mobile video niche and are investing in the creation of a comprehensive mobile content infrastructure (acquisition of Adap.TV's AOL, FAcebook takeover of LiveRall, and other mergers). These companies also understand that the attention of users is now shifting to the mobile sphere. At the same time, traffic is gradually shifting from the desktop sector to the mobile Internet sector.

    Classic publishers are trying to compete with user-generated video, trying to create better content in order to gain a foothold in the mobile sphere.

    Facebook and Twitter are successfully operating in this direction, realizing that advertising for video content is the future of the advertising market. Applications like Snapchat and Tango also generate tons of mobile video content, leaving the possibility of monetizing this kind of material.

    Mobile video infrastructure also provides for the creation of a new advertising model for advertisers, reducing the risks of publishers and their partners. Such a parameter as the price of a thousand video views (CPMV) will allow advertisers to pay for advertising only if the user actually watched the video, but did not open and close it. And the price for full viewing (CPCV) makes the advertiser’s work even less risky, eliminating third-party costs for paying for incomplete views. Of course, there must be a reliable statistics system that allows you to control all of these parameters. For most advertisers, such systems are new, but in the near future, according to some experts (for example, Yoni Argaman ), this model of work will become standard.

    In general, publishers and advertisers, along with users, are gradually getting used to the new conditions for working with video content in the mobile sphere, and are actively working with a model of advertising and / or monetization in the field of mobile video.

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