Mobile Video Advertising Is Taking Off, As Ad Buyers Pile Billions Of Dollars Into Small-Screen Ads

BIIMobile video isn't a huge slice of mobile advertising, but it's growing fast.

Mobile is growing faster than all other digital advertising mediums in the US, but one mobile format in particular is catching ad buyers' eyes: Mobile video.

Consider:

• Mobile video ad revenue in the US will top over $4.4 billion in 2018, up by a five-year compound annual growth rate of 73% from 2013.
• Mobile video ads will grow almost five-times faster than desktop: For comparison, desktop video ad revenue will grow by a CAGR of only 15% during the same time period.
• Display, including rich-media ads, will grow even faster, propelled by the migration of desktop ads to mobile, which is where audiences are today. But the advantage of mobile video is that it can absorb advertisers' video ad assets created for larger screens.

These insights are from a new BI Intelligence report on mobile advertising, which includes an exclusive forecast of the segments of the mobile ad market and how fast they will grow. These include display, video, social, and search. The report provides exclusive breakdowns on how spend on each format will grow and why, and examines the overall performance of mobile ads. It also looks at how programmatic ad-buying tools, including real-time bidding, are reshaping mobile advertising.

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Here are some of the other key takeaways:

• Display and video will be the fastest-growing mobile ad formats as digital ad dollars quickly shift from desktop to mobile, and ad products improve. US mobile display and mobile video ad revenues will grow at an astonishing CAGR of 96% and 73%, respectively, between 2013 and 2018.
• But search and social media will still account for the largest share of US mobile ad revenue during the forecast period. Search is a strong format on mobile because of its convergence with local-mobile targeting.
• Mobile programmatic ad revenues, including ads sold through real-time bidding (RTB), will account for 43% of US mobile display-related ad revenue in 2018, up from only a 6% share in 2013. But programmatic will still be limited by the lack of robust cookie-based targeting on mobile.
• In-app mobile ads perform much better than mobile web ads, and ad spend will likely follow performance and usage. In-app click-through rates averaged 0.56% globally compared to 0.23% for mobile web ads during the first half of the year, according to Medialets.

The report is full of charts and data that can easily be downloaded and put to use in your internal and client presentations.

In full, the report:

• Provides 12 charts and datasets on mobile ad spend and performance trends
• Includes revenue/spend forecast for top mobile ad formats, including search, social, and video
• Tracks performance trends of in-app ads vs. mobile web ads, and programmatic ads vs. non-programmatic ads
• Explains the massive rise in mobile ad spend
• Analyzes how programmatic ad platforms are overcoming the limitations of mobile cookies
• Outlines the news on mobile programmatic tools from Facebook, Twitter, and smaller players like Millennial Media

For full access receive to all BI Intelligence's analysis, reporting, and downloadable charts and presentations on the digital media industry, sign up for a risk-free trial.