Mobile Digital Ads to Grow Through 2020

Are we ready for the next five years in mobile video?  We are learning how to make it viewable, and how to make it measurable. But do we know how to make it effective?

A new BusinessInsider report gives a very rosy picture of digital ad spend over the next five years, especially on mobile . Highlights from the full report (which is behind a pay wall) are here:

  • Mobile will be the fastest-growing advertising channel and buoy spending on each of the digital formats. US mobile ad revenue will rise by a 26.5% CAGR through of 2020.
  • Digital video ad spending is rising faster than search and display. US digital video ad revenue will rise by a CAGR of 21.9% through 2020. 
  • Mobile search will overtake desktop search ad revenue by 2019. Mobile search ad spend will rise by a 25.2% CAGR, while desktop search ad revenue will decline during the same period.
  • Mobile display ads, including banners, rich media, and sponsorships, will overtake desktop display-related spending even earlier, in 2017. 
  • Social media ads, which cut across display and video, are seeing fast adoption. US social media ad revenue, which includes video and display ads, will grow by a CAGR of 14.9% through 2020.
  • The rapid embrace of programmatic ad-buying tools is fueling a dramatic uptick in the share of digital ad spending coming through programmatic channels. Programmatic transactions will be a majority of total US digital ad spend this year. 
  • Unlike digital, traditional ad revenue will remain flat overall through 2020. Total traditional ad revenue will rise by a CAGR of just 0.4% between 2015 and 2020. 

You can couple this with the fact that Facebook has added features to its site that make it the fastest growing place to watch video. The most attractive of these seems to have been auto-play, which launched in 2013. Facebook users view 4 billion (that’s with a b) of these videos annually — up from 3 billion a year ago.

It’s obvious which way the wind is blowing. YouTube is still in first place as a site to upload and watch video but Facebook has emerged as a major competitor; the number of videos each user posts to the site has grown by a startling 94% and the number of paid and unpaid videos grew by 360%.

As we move to mobile, expect the amount of video watching on all sites continue to increase. For brands, the big question becomes not whether to use video, but how compelling you can make your video content for a customer on the move.