Mobile video advertising market is growing like an avalanche

The mobile video market, and hence the associated advertising market, is growing day by day. However, until recently, this was a steady, almost linear growth, which is now becoming exponential. In the US alone, over the last year, the mobile video advertising market has doubled, from $ 720 million in 2013 to $ 1.5 billion in 2014. According to eMarketer experts , already in 2018, the volume of this market will increase up to 6 billion US dollars. This will be about half of the total online video advertising market.

The increase in the number of mobile devices, the coverage of mobile operators and 4G services, the increase in the screen of mobile devices leads to an increase in the consumption of video content on mobile devices. Now consumers of mobile video content watching videos are no longer just on the sites, but in the corresponding applications of various services. At the same time, the share of video views on tablets is greater than the share of views from other mobile devices. At the same time, viewing a user advertisement on the planet is more costly for an advertiser (by 30-50%) than viewing advertising on a smartphone.

A large role in the growth of the mobile video advertising market is played by a peculiar democratization of the production of this type of content, as well as an increase in the number of available methods of content distribution. Some video clips and even films are filmed by private users, with a regular smartphone camera or a video camera. Thus, a new niche appeared on the market, which was occupied by Saizdat. At the same time, any user can share a good video with his colleagues, friends and acquaintances, which leads to an increase in the popularity of “self-made” videos, and not professional studio works.
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This further expands the capabilities of advertisers, and increases the advertising market in media content. True, most brands still prefer to place their advertisements in premium content rather than samizdat videos, but the reverse trend is gradually becoming apparent.

Of course, in an environment where everyone can shoot their own videos, the number of videos with children, cats, family celebrations is growing rapidly - and few people will agree to place their ads in this content. At the same time, the number of very high-quality user materials is also increasing, which contributes to the transition of advertisers to relatively new categories of media content.

Some media networks, such as Maker Studios (bought by Disney) and Fullscreen, help increase the generation of high-quality video content that is suitable for brands. The new platforms, for example, Vessel , which are created mainly for smartphones and tablets, also manifest themselves.

Major publishers such as Yahoo and AOL also understand the potential of a new mobile video niche, and invest in creating a deployed mobile content infrastructure (the AOL acquisition of Adap.TV, the acquisition of LiveRall's FAcebook and other mergers). These companies also understand that the attention of users is now shifting to the mobile sphere. At the same time, traffic is gradually shifting from the desktop sector to the mobile Internet sector.

Classic publishers are trying to compete with user-generated video, trying to create better content, with the aim to gain a foothold in the mobile sphere.

Facebook and Twitter successfully act in this direction, realizing that advertising for video content is the future of the advertising market. Applications like Snapchat and Tango also generate tons of mobile video content, leaving the possibility of monetization of this kind of materials.

The mobile video infrastructure also provides for the creation of a new advertising model for advertisers, reducing the risks of publishers and their partners. Such a parameter as the price of thousands of video views (CPMV) will allow advertisers to pay for advertising only if the user actually watched the video, and did not open and close. And the price for a full view (CPCV) makes the work of the advertiser even less risky, removing third-party costs to pay for incomplete views. Of course, there must be a reliable statistics system that allows you to control all these parameters. For most advertisers, such systems are new, but in the near future, according to some experts (for example, Yoni Argaman ), this model of work will become standard.

In general, publishers and advertisers, along with users, are gradually getting used to the new conditions for working with video content in the mobile sphere, and they are actively working with the model of advertising and / or monetization in the field of mobile video.