Mobile Video Consumption, Spending Grow

Mobile video content is growing, both in quantity and quality.  It’s not only about YouTube videos anymore; anyone who owns an iPhone 6 has seen that stunning video can be captured on a smartphone and shared on Facebook or WhatsApp. In addition, wearable cameras like the GoPro have made it possible to record action videos that couldn’t be captured inexpensively before. And then there are drones taking videos of many things. eMarketer reports that mobile video ad spend in the U.S. more than doubled from 2013 ($720 million) to 2014 ($1.5 billion) and will reach $6 billion in 2018, representing about half of the total online video ad spend.

 This increase in video content means more spots for mobile ads, both pre and post roll.  And that leads to a growth in mobile video ad spend. And for app publishers that don’t have video content for pre-roll, ZEDO leads the innovation to elegantly insert video ads into non video apps. Thus, ZEDO brings the joys of high CPM video advertising to even more mobile apps.

But mobile is still, as Randall Rothenberg said at the IAB Leadership Summit,  the Wild West. We are in the early stages of measuring viewability, engagement, and actual brand KPIs. There is evidence that consumers are watching more video on tablets than on smart phones, which further confuses the issue of attribution for brands. iPad sales may have flattened, but tablet video ad inventory is 30-50% more expensive than smartphone inventory.

Although consumers at home on a tablet may not be making an immediate purchase, they may be more amenable to watching ads than consumers on the go using a wearable device that’s been traditionally considered only for personal communications.

the projections are tilted overwhelmingly in favor of tablets. Out of 132.2 million tablet users in the U.S in 2013, 92.6 million users or 70% of tablet users were watching videos on their devices, at least once every month. In 2014, 113.4 million users will view videos on their tablets, a 7% jump from 2013. By 2018, this penetration will soar to a massive 87%, with at least 149 million out of 171.3 million users, watching videos on a tablet. This is a total of 55.6% of the internet population in U.S.

In the coming year, the industry will be faced with issues of how to measure completion rates for video, how and where video advertising works best (on video apps vs amidst text, on phones vs tablets, in mornings vs afternoons), and what length of video ad works best.

Also, how much video advertising will consumers tolerate in their apps and newsfeeds? No one yet knows.