Mobile video advertising spend jumps 122% driven by strong mobile adoption in Mexico
A new report by IAB Mexico has found that investment on mobile platforms increased 117% since 2011, whilst desktop has remained stagnant. Much of that mobile growth is driven by video with $170m having been spent on the format in 2015 – that’s an increase of 122% over the previous year.
Mobile drives video ad spending
Social media ranked second at a growth rate of 71% from 2014 to 2015, whilst banner ads and rich media dropped 14%.
Indeed, Mexico is gaining ground. In 2015, half of all online advertising investment was made on mobile platforms.
Mobile ad spend evolution in Mexico
Gabriel Richaud, GM, IAB Mexico, explains:
“In Mexico, digital advertising’s evolution is similar to other international markets, both regarding an increasing share and a growing mobile environment. But not every player is capitalising it.”
Mobile display advertising during 2015 was highest for social media at 46%, followed by video 35%. IAB says that both video and social media are enabling a stronger interaction and higher segmentation which drives much of the format’s growth.
Mobile display ad spend
Mauricio Hurtado, partner of PricewaterhouseCoopers Mexico, which conducted the research, adds:
“In a global market increasingly complex, the demands of the younger audiences are opening new opportunities of advertising investments in the Internet, both for traditional and new companies.”
IAB Mexico recommends that advertisers strengthen their programmatic strategy in line with market expectations and reevaluate their banner ad strategies, particularly within the mobile environment. Social media and video overall represent better options. In addition, new display formats should be explored such as digital audio, native mobile, advertgaming and others.