Digital video advertising on mobile devices set to grow rapidly


new report from BI Intelligence finds that video advertising on mobile devices is growing up to three times faster than on desktops. Over the next five years, mobile video ad revenue is projected to grow to 39.5%, compared to 12.9% on desktops. Total revenue is to rise from $5bn spending this year to $13.3bn in 2020.

Video advertising on mobile devices is outgrowing desktop ads rapidly

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As the number of smartphone users worldwide grows, it comes as no surprise that mobile devices are popular among advertisers. In addition, BI Intelligence research highlights the high rate of success of video ads, saying that in-stream video ads generated click-through rates 18x higher than HTML5 banners.

Opera Mediaworks recently announced similar findings. The mobile ad platform says that mobile video advertising generates over half of its own and its publishers’ revenue growth. In its latest report, the company says:

“In the past year, the share of impressions from video ad formats has increased over 5X, from 2.5% of all impressions in Q1 2014 to now just over 12.8% of impressions. Meanwhile, revenue from video has grown to become over 55% of revenue delivered to publishers.”

Additionally, advertising company Vdopia found that the average American consumes 33 minutes of mobile video per day. Meanwhile, Facebook confirmed that 75% of video views from its embedded video player came from mobile devices, with mobile ads accounting for 73% of the social site’s revenue.

Verizon Communications recently jumped on the trend and bought AOL for $4.4bn for their innovative online video advertising technology. Mike McCormack, Analyst, Jefferies & Co said:

 “(Verizon executives believe AOL can drive) a significant improvement in ad dollars as they move into mobile video.”

It seems all of this is just the start, as VentureBeat predicts a “golden era of mobile video”. The site attributes both the success of Youtube and Snapchat to the rise in mobile video formats and as more apps flood to the market, the potential for advertisers to feature content is ever growing.