Friday, 26 February 2016

Why Marketers Are Still Reluctant To Explore Mobile Video Ads

Video is well known to be one of the most powerful engagement tools for an advertiser, thus emerging as one of the top digital advertising formats on both desktop and mobile.

Globally, digital video is gaining traction rapidly on social-media sites. And advertisers in search of new ways to take advantage of it over competitors have continued to look for ways to increase their brand awareness and engagement through it.

The fusion of captivating audio, vibrant graphics, and compelling text produces a richer consumer experience. Combining this winning formula with relevant content, video ads are effective in converting customers to loyal fans.

Mobile video has tons of momentum. It more than doubled from 2013 ($720 million) to 2014 ($1.5 billion) and is predicted to reach $6 billion by 2018, which would put it at about half of all online video spending, according to AppLovin and AppsFlyer, mobile marketing and mobile attribution companies. By 2019, eMarketer estimates, mobile’s share of total digital video ad dollars will reach 47.7%.

So with all these capabilities and benefits, why hasn’t mobile video spending exploded? Why have advertisers not gotten into mobile video advertising extensively yet?


The cost of mobile connectivity is a huge issue especially in Asia and Africa. A lack of consensus over metrics and ad pricing between buyers and sellers is hampering mobile video’s growth, as is the variety of mobile video ad formats, which leads to confusion among buyers that may prefer to wait on the sidelines until clear winners emerge. Other challenges to spending growth include uneven ad inventory and uncertainty over whether mobile web or in-app channels are the better option for particular messaging goals.

The mobile space is also getting more complex with every release of new devices, operating systems, or upgrades. Agencies and advertisers find it challenging to plan for every possible combination of devices, OS, and ad format. Without proper planning, this complexity can cause significant hiccups during campaign execution.

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