Over 2B users will watch videos on mobile devices this year. “This population continues to rise as viewers increasingly shift media consumption behaviors away from traditional screens,” according to Pubmatic’s latest Quarterly Mobile Index (QMI) Q4 2019.
Further, mobile video is expected to account for 79% of mobile data traffic by 2022, aided by faster network speeds with the advent of 5G and a push towards more interactive media.
In-app ads spike 62%
The report identifies three key trends driving mobile advertising growth:
- In-app launches video ad spending to new heights: In-app video ad spending more than doubled in North America and Western Europe over last quarter, and grew faster than the same time last year. APAC also saw strong growth in Q4 2019. Overall, mobile platform spending rose 47% over last quarter, driven by in-app ads which spiked 62%.
- Header bidding unwraps mobile video ad revenue potential: The majority of header biddingad spend growth came from mobile devices. This drove the mobile share of header bidding to 55%, up from 49% last quarter. Specifically, in-app header bidding spending doubled in Q3 2019, with strong performance across both Android and iOS platforms.
- Holiday shopping shifts earlier, boosting global ad spending– In Q4 2019, the holiday shopping surge began almost two weeks before Black Friday. Ad spending spiked 25% above the weekly Q4 average. In comparison, it rose 16% over the same period in 2018.
Mobile and video ad demand continues to soar
The report offers the following suggestions for publishers and advertisers, based on the above trends:
- Prioritize the mobile in-app video experience: As media shifts towards more interactive, dynamic formats, publishers who are poised in-app are primed to capture the growing ad revenue opportunity.
- Employ mobile header bidding for video ad inventory to optimize monetization strategies: As both mobile and video ad demand continues to soar, publishers and app developers who invest in video header bidding solutions in-app will extend their inventory monetization efforts.
- Aptly timed inventory grooming maximizes ad revenue: Publishers and app developers should focus on content development and inventory quality controls far in advance of marquee shopping events.
The mobile programmatic opportunity is booming as advertisers direct their attention on engaged mobile audiences through automated channels.
The report states, “While it is still early days for video header bidding, many publishers are actively opening up their inventory to capture future revenue opportunities. More than half of global publishers were reported expanding or planning to implement video header bidding solutions on mobile.”
The author comments, “Video is one of the most powerful tools in the mobile advertising toolkit. Viewers retain 95% of a message from video as opposed to only 10% from text.
“Then, it is no surprise that video ad spending exploded across the digital advertising landscape over the last year. With media consumption increasingly shifting in-app where users are most captive, the opportunity growth for video ad spending looms large.”
As media shifts towards more interactive, dynamic formats, publishers who are poised in-app are primed to capture the growing ad revenue opportunity.