Video advertising on smartphones and tablets is growing three times faster than video ads on computers
Mobile video ad revenue will grow more than 3x faster than desktop through 2020.
Why is digital video growing so quickly? Consider:
- Conventional display advertising is shifting to video.
- Media time is migrating to mobile
- Video is a familiar and effective format for brand advertising
In all-new in-depth research from BI Intelligence, we dig into the rise of digital video and find that overall US digital-video advertising revenue will top nearly $5 billion this year, and grow at a five-year compound annual growth rate (CAGR) of 21.9%. Total revenue will reach $13.3 billion by year-end 2020, according to BI Intelligence estimates based on historical data from the Interactive Advertising Bureau (IAB).
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Here are some of the other key takeaways from the report:
- Video is quickly replacing static display advertising on desktop. Video will account for 41% of total desktop display-related spending in 2020, up from a 26% share this year.
- Video ads perform better than standard display ad units. In-stream video ads, including ads that play at the start, during, and after video content, yielded click-through rates (CTRs) that were 18x higher than HTML5 banner ad units in February 2015, according to Google's Rich Media Gallery.
- Video's premium status within digital is reflected in the format's high prices. Video ads tend to cost significantly more (e.g., 2x or 3x) than non-video ad units on premium publishers like Vice and Instagram.
- Facebook, Instagram, and Twitter have all introduced new digital-video ad products. Social video offers several major advantages from an advertiser perspective, including huge built-in mobile audiences, advanced targeting, and native-style ad units.
- But despite their high prices and strong results, video ads create a special set of challenges around viewability.
The report is full of charts, data, and case studies that can easily be downloaded and put to use.
In full, the report:
- Forecasts programmatic and digital video spending on desktop and mobile through 2020.
- Analyzes recent video-ad price and performance trends.
- Outlines new video-ad products from social networks like Facebook, Twitter, and Instagram.
- Explores the unique hurdles that video-ads face for viewability.
To access the full report from BI Intelligence, sign up for a 14-day trial here. Members also gain access to new in-depth reports, hundreds of charts and datasets, as well as daily newsletters on the digital industry.