The Growth of Video Advertising on Mobile

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The Growth of Video Advertising on Mobile

For the past few years advertisers have been talking about the growth in mobile device internet usage with mobile bypassing desktop as the main device in 2014 and mobile video accounting for 55% of traffic globally.

By 2016, Australia is set to become the 7th largest mobile ad market in the world, emphasising the importance of mobile optimised websites and mobile advertising. (Source: eMarketer)

The Shift from TV to Digital Video

A new study recently released by the Interactive Advertising Bureau (IAB) showed that 4 out of 5 Australian prefer to watch free, ad-sponsored video content on their mobile device to watching TV. This has caused a drop in TV ratings with 14% of Australian users stating that they watch less TV and more long-form content on their smartphone devices, an increase of 30% year on year.

This is partly due to the rise in online catch up TV websites such as Plus 7, Jump-In, BBC iView and Ten Play that are free to view. However, there is also a growth in online video content on social media sites with users being able to view content that interests them, wherever and whenever it suits them. Findings from IAB show that the most popular time of day to watch content on a mobile device is between 5pm to 11pm, with 45% saying they watch video online between 8-11pm.

Mobile the First Screen for Millennials

Not surprisingly, the main demographic for these findings are 14-29 year olds with 32% not watching free-to-air TV at all (Source: Sydney Morning Herald). Further to this, Millennials are twice as likely to be engaged whilst watching video on their smartphone than on TV, with far less distractions. This shows that, mobile is not the second screen for this demographic, but the first, with 50% of global YouTube views coming from a mobile device. (Source: Think with Google)

Social Media Video Content

Due to this increase in consumption of content on mobile devices, particularly for video, advertisers and content producers are using social media platforms such as YouTube, Facebook and Twitter to target their audience and build brand credibility.

Just this week, a new enterprise to create an online entertainment hub between Twitter and an online video production company has been announced called Amplify Now, aiming to grab the attention of teen audiences with the latest news and topics that interest them. (Source: Sydney Morning Herald)

According to reports by social media sites Facebook, Twitter and YouTube, all have seen an increase in video views on a mobile device with Facebook at 65% of all video views, YouTube at 40% and Twitter promoted videos at 90% of all video views globally.

Google TrueView Ads on YouTube

Online videos can be promoted by using existing videos and promotional ad content or tailoring videos to specific social media sites. Google TrueView ads on YouTube show the need to create engaging online videos that are “unskippable” by experimenting with what makes your audience engage with your video content rather than using the same TV ad. Geico ads are a good example of “unskippable” ads and why the first 5 seconds are so crucial.

If you would like to discuss your mobile video advertising strategy with us, get in touch

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