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Video rising by the numbers

Video rising by the numbers

We’re bullish on mobile video and the industry agrees, and eMarketer’s recent report supports this claim. Based on a survey conducted by Cowen and Company, significant growth is expected for digital video ad spending. It’s projected that US digital ad spend for mobile video will grow 1.5x from 2016 to 2017, and that by 2020 this number will grow 4x. With the robust reach of our own platform we sought to observe the growing interest in mobile video, as we see on our platform. Examining the past month, we found a few interesting figures worth sharing.

Mobile video ad requests are more common when devices are connected to wifi than to cellular connection. With consumers’ rising concerns about data wastage by apps it’s no surprise that the majority of video ad request traffic originates in devices that are not using cellular connections. It’s possible that with network upgrades, and more accessible data packages this may change but at the moment wifi is where it’s at.

Video is touted as a far more engaging format than its static banner counterpart. With far more information, eye catching movements and the ability to entice users with more complex content, this comes as no surprise. On our own platform we see that video ads have a CTR that is almost 2x that of banner ads, supporting the notion that video ads are more engaging.

With video ads’ superior click rates and its being better received by users, this inventory is far more lucrative to buyers. This interest empirically translates to higher bids for these ad slots on the exchange, making for an average bid price that is 5x greater than that of a banner ad.

We’re looking forward to video having an even wider adoption, and for the improvement of cellular networks so that these ads are accessible regardless of connection type. Will mobile video meet the expectations? We certainly think so.

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