By: Inneractive Marketing (@Inneractive)
What is a Data Punch?
Much like it sounds, Inneractive surveys and aggregates months, sometimes years of internal data concerning the mobile monetization and advertising space and offers it to you in a quick easy-to-consume fashion. You can expect it to include exclusive and eye-opening data about past, present and future trends in mobile.
Here goes:
Mobile video advertising is the next big thing. In fact, it is the current big thing, and rightfully so. The level of engagement the industry sees with mobile video far exceeds anything display advertising can ever dream of. The question remains, how much traction has it already achieved and when will video advertising become mainstream on all our devices? We set out to find the answers…
Inneractive ran a survey among its developers of all sizes and across all mobile platforms. The conclusions will surprise you.
When presented with the question “How would you describe your focus on video over the last year”? Our developers rated their activity on a scale from 1-4, 1 being “not focused” and 4 “focused”. 78% of responses were rated 1-2. That means the majority of developers did not leverage the power of mobile video, yet.
Well, we then set out to figure out why publishers were not taking full advantage of video and our speculation was that the user experience of mobile video advertising was not yet on a high enough level to replace display. So we asked “What elements of the video UX need improvement in your opinion?”, 51% responded that video buffering was preventing the user experience of video from reaching its full potential, which in turn prevents publishers from embracing it.
While mobile broadband is always increasing in speeds, the buffering issue will resolve itself in the near future, so we decided to focus on the inventory that DOES take advantage of video. We asked “What is the ratio between display and video advertising revenue in your experience?” In other words, how well do video ads outperform display ads in apps? 52% of the answers we received illustrated that developers double their revenue when using video advertising. More than that, 30% reported that their revenues boosted by 5X or more!
Finally, we asked our developers about the future and how they view the role of video advertising in their monetization strategy. 63% of the developers we asked responded that 50% or more of their entire inventory will be monetized using mobile video advertising in within the next year.
We have long since understood that video is where the market is going and have therefore embraced video as our primary focus in the development of the Inneractive SSP and its offering to mobile app publishers. Based on this survey, our developers say it clear, this is the year of mobile video advertising.
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