Mobile video ad spend is slow to catch up with desktop and TV
A new study by eMarketer has found that mobile video ad spending is relatively slow to catch up with desktop video and TV due to growing pains of the format. The US Mobile Video Advertising 2015: Video Viewing Goes Mobile, but Advertisers Aren’t Going All In (Yet) report finds that despite mobile ad spending predicted to grow 70% to $2.62bn this year, it underperforms as part of digital video ad spending. By 2019, desktop and mobile will have moved closer together in terms of spending. However, eMarketer predicts that whilst mobile will make up $6.86bn of the $14.38bn digital video ad spend, desktop will still rank ahead with $7.52bn.
Mobile digital video advertising spend underperforms
Jeremy Kressmann, Analyst at eMarketer and author of the report, says:
“Mobile video ad spend is experiencing rapid growth, thanks to larger audiences of video viewers and growing time spent on smartphones and tablets. But challenges with the format are causing growing pains for the industry.”
Reasons for the slow growth are the challenges associated with this relatively new format. Advertisers aren’t exactly clear about metrics and standards to successfully measure video ads will need to be implemented for ad campaign success to be evaluated. Uneven ad inventory as well as uncertainty over web or in-app channels are additional challenges.
However, the research found that demand for mobile video is high with over 105m US smartphone users watching video on mobile at least once monthly in 2015. This represents a 13.9% increase from 2014. US tablet video viewers are also projected to rise by double-digits in 2015. Kressmann adds:
“As consumers are becoming increasingly agnostic about the device they use to watch video, some advertisers are finding the most valuable strategy to be buying mobile video ads as part of broader cross-device campaigns on television and digital video.”
Indeed, marketers have begun to incorporate video ads into cross-channel campaigns. Given the interactivity of mobile touch screens, engagement with mobile video is high, more personal and intimate than that on desktop.