Mobile video has begun to accumulate scale, and has also turned out to be one of the few types of mobile content — along with games — that monetizes reliably and drives premium ad rates.
That’s reflected in the much higher prices that mobile publishers can command for mobile video ads, compared to standard mobile formats like banners. eMarketer estimates mobile video will account for $US520 million in ad spending in the U.S. this year, or 13% of the digital video ad market.
In a recent report, BI Intelligence breaks down the mobile video ecosystem, analysing the behaviour and devices behind the growth in consumption, and examining the demographics and behaviour of mobile video consumers.
We specifically detail how mobile video monetization is booming, and look at the new video ecosystem that is taking shape, with mobile devices — rather than television — at the center.
Take look at this infographic from our report:
Thanks in large part to this growing ecosystem, brands and agencies are becoming more familiar with mobile video ad formats and in putting together mobile video ad campaigns. Thanks to technology and better know-how among ad platforms, mobile video ad units are easier to deploy across the mobile landscape than they were in the past.
As we detail in our report, tablet-specific ad units are beginning to proliferate, as are non-ad videos that brands push out on their own digital platforms. So are anecdotes about increased mobile video ad transaction volume:
- YuMe, a provider of brand video advertising services, saw its mobile video advertising revenue in France and the U.K. grow over 500 per cent in 2012. Mobile video ad specialist AdColony also reported U.S. revenue growth above 500 per cent in 2012.
- Michael Bayle, senior vice president of ESPN Mobile, says he sees the automotive industry diving quickly into mobile video as a complement to TV spending. “We see automotive highly skewing in favour of mobile,” he told Business Insider. ESPN benefits because its audience is 85 per cent men, and auto advertisers are often chasing male eyeballs.