Mobile video still big unknown for advertisers
There has been much talk about mobile video advertising lately due to some new estimates released by eMarketer. The insights are telling of the adjustments and fears within the industry of mobile marketing. To put it simply, projections for spending on mobile marketing are much less than they should be given the popularity of the media. Let's take a look at their findings:
Advertisers are expected to increase mobile video ad budgets by 70% this year to $2.62 billion in the US
In 2019 mobile video ad spending is expected to reach $6.86 billion and account for 47% of all digital video ad spending
Spending on mobile video ads will still be less than spending on desktop video advertising in 5 years
The problem here is that YouTube generates more video views on mobile than desktop right now, and this is aside from the imminent rise of mobile video that's still to come. The amount of people watching videos on smartphones and tablets does not match the dollars advertisers are willing to spend on the market. These projections show us that they're still not sure about how to approach and measure the impact of mobile video advertising.
eMarketer analyst Jeremy Kressmann issued some comments about mobile video ads, stating "As that audience continues to ramp up, by no means is ad spending necessarily matching that demand. That's a big gap there that we're going to have to figure out how to solve,"
Ad planners may be behind the curve because they're still accustomed to buying video like TV ads, which are based on gross ratings points. Mobile video doesn't work that way, selling based on engagement metrics like clicks or completed views.
Have you thought about your client or brand's presence in mobile video advertising?
You can read more about the eMarketer findings here