Mobile Video Opportunity is Just Beginning

Judging from the latest studies by eMarketer and Adobe,  people are spending more and more time consuming media. The Adobe Digital Index analyzes more than 214 billion digital advertising impressions, 201 billion  video starts and 100 billion website visits. The net of this is  that over the past five years, media consumption has increased by nearly two hours to more than five hours a day. Much of this is probably due to simultaneous consumption on more than one device by consumers who watch TV while using their smart phones or tablets.

This should be good news for advertisers, because consumers have become more and more reachable.

The bulk of this new media consumption has gone to mobile. And yet, if you look at the stats, most of the money is still going to TV (37%). TV viewing is, however, declining.

According to Zenith Optimedia, TV spend is declining

According to Zenith Optimedia, TV spend is declining.

Notice in the chart above that mobile, which is growing, has almost caught up to print, and is coming close to desktop. Predictions are that it will surpass desktop consumption by 2018. However, we think that will happen even faster if you look at global numbers, because we are seeing very fast growth in Southeast Asia, Australia, and New Zealand, where we have recently opened offices. The chart below covers only U.S. mobile vs. desktop, but the countries in which people are coming online most quickly are nearly totally mobile.

Mobile Crossing Desktop Display Soon

 

Now it’s up to marketers to have faith in the future growth of mobile and continue to shift their spend accordingly. From Mary Meeker’s recent report, here’s the money shot:

Mobile advertising still remains a great opportunity.

Mobile advertising still remains a great opportunity.

In the above slide, which I’m sure you’ve already seen,  mobile ad spend vs. time spent are still quite unbalanced. Because we were here since digital advertising began, we know that things always balance out, with advertising spend playing catch-up to new technologies that attract consumer support. From our perspective, mobile video advertising opportunities are just beginning, and due to take over digital ad spend in the next few years.