Mobile video ad spend almost triples in 2015
Mobile video advertising has been making huge strides. Growing five times faster than desktop video ads, a new study by mobile advertising companies AppLoving and AppsFlyer, finds that mobile video is the fastest growing ad format at a rate of 190% during the first three quarters of 2015. User retention for the format is generally 40% higher than others. The companies examined one billion devices worldwide and found that video spend across 2015 had been steadily increasing, growing from 23% to 66% between January to August.
Video ad spend climbing high in 2015
Mobile video ad spend for non-gaming advertisers rose from 16% to 46% during the same time period. Spending for gaming advertisers jumped from 20% to 71%. Games marketers have been early adopters of the technology, recognising its benefits to showcase games in more detail and engaging their users.
Mobile gaming advertisers have been quick to adopt mobile video
The fast growth in mobile video ad spend is mostly due to the format’s effectiveness in retention rates. Having measured retention over one day, seven and 30 days, the study found that video ads experienced a 34% better retention rate than non-video advertising. If a gamer downloads a gaming app after viewing a video, s/he is more likely to keep the app for longer than non-video ad viewers.
Video ad retention rates are 34% better
Ran Avrahamy, head of marketing, AppsFlyer, explains:
“Videos ads are able to demonstrate what an app is truly like way more effectively than a text ad or a static display ad. It gives the user a chance to see the app in action and get a good sense of its graphical movements, its gameplay, or whatever its best features are. So when a user chooses to install an app after watching its video trailer, they’ve already decided that they’re interested in it and the chances are pretty good they’ll like it once they start using it. With other types of ads, the user has to take more of a leap of faith that the app is something they might like.”
Marketers are realising the importance of mobile video and should shift their budgets accordingly. Similarly, app publishers and developers can benefit from the trend and find ways to engage their users in-app.