Mobile digital video advertising is the future
Video is quickly becoming the dominant medium of the smartphone era.
According to the recent study by BI intelligence, US digital-video advertising revenue from mobile-based video ads will top over $1.2 billion this year, equaling ca. 25% of the total video advertising revenue. That figure is expected to grow at a five-year compound annual growth rate (CAGR) of nearly 40%, reaching $6.5 billion in year 2020 (or ca. 49% of total video advertising revenue).
Overall surge in digital-video advertising is driven by the simple fact that video ads are more effective than standard display ad units. Google's Rich Media Gallery estimated that in-stream video ads (including ads that play at the start, during, and after video content) yielded click-through rates that were 18x higher than HTML5 banner ad units.
Social-networking sites are best positioned to be the biggest gainers of this trend, as they already have huge built-in mobile audiences, advanced targeting, and native-style ad units.
written by Oleksiy nesterenko.