Review of eMarketer’s US Mobile Video Advertising 2014 Report
By Nikos Tsagaroulis on 04/23/2014
According to eMarketer (US Mobile Video Advertising 2014, April 2014 research), in 2013 the US had 74.4MM smartphone video viewers and 92.6MM tablet video viewers. Those numbers are expected to reach 89MM and 113MM, respectively, in 2014. In 2014 US mobile is expected to reach 8% of total mobile ad spend. This represents a 19% increase over 2013.
This trending growth is even more pronounced for marketers that advertise only on TV. There are many key drivers behind these trends including:
- Increasingly large audiences, especially tablet audiences, make scale a positive factor
- High advertising costs, especially for tablet video ads, have a moderating effect
- Increasing flexibility in pricing models – although CPM is the dominant model, Cost per View (CPV), Cost per Engagement (CPE) and Cost per Completed View (CPCV) are making inroads
- Flexibility of mobile video ads to be used for both branding and direct response advertising
Mobile audiences are generally dislike mobile video ads and there are plenty of reasons. Video ads are highly data-intensive forms of content and therefore ad play is on the viewer’s dime. In addition, video streaming often stalls, stutters or takes time to buffer. Marketers have found ways to counter these negative factors by streaming video ads only when the devise is connected via Wi-Fi and/or creating shorter videos. Facebook is battling this issue by rolling out its mobile video ads on users’ feeds.
Mobile video ad effectiveness measurement is also facing major challenges as accurate ROI measurement remains elusive adding to spending inhibitions. For now the key metrics are interaction rate, video-view-to-desired-action rates, time spent, cost per view and completion rates. Last but not least, some measurements are not accurate. For example counting de-duplicated audiences in smartphones is impossible as a lot of usage is happening in native apps and not in a browser. In contrast, for tablets many times the activity is in a browser and thus more accurate to measure.
Despite all the challenges, eMarketer predicts that smartphone and tablet video viewers will keep trending upward but at decreasing rates, reaching single digit Y-O-Y % increases by 2018.
(Photo Credit: Business Insider)
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