IN THE NEWS: Mobile Video Advertising Growing 3X Faster Than DesktopBlake Harris 08.12.2015
According to a new research report conducted by BI Intelligence (a subsidiary of Business Insider), US advertising revenue from PC and mobile video ads will top nearly $5 billion this year. An impressive number to be sure, but what’s ahead is even more staggering: digital ad revenue is expected to grow at a five-year compounded annual rate of 21.9% (which will take that total to $13.3 billion by the end of 2020).
First reaction: Wow.
Second reaction: How?
Due to the seemingly exponential growth (and usage) of platforms like Facebook, Instagram, Snapchat, Twitch, Twitter and, of course, YouTube.
Here are some other key takeaways from the report:
- Video will account for 41% of total desktop display-related spending in 2020, up from a 26% share this year.
- 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 ads tend to cost significantly more (i.e. 2x or 3x) than non-video ad units on premium publishers like Vice and Instagram.
- Social video offers several major advantages from an advertiser perspective, including huge built-in mobile audiences, advanced targeting, and native-style ad units.
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