Mobile In-App Video Ads to Drive Display Revenues

One major takeaway from a research and a consequent report by Forrester is that in-app mobile video ads will contribute the biggest slice the revenues from display ads.

The report states that video will contribute 72% of the increase in the revenues. The share of the ad format in the market will grow to 59% by 2023.

According to an associate analyst at the company, Brandon Verblow, two consumer trends drive the growth in mobile video ads in applications.

‘People are spending more time on their mobile phones in apps. That works alongside the increasing consumption for online video to drive online display ad spend,’ he says.

However, it is unlikely that marketers will swing to in-app ads from banner ads on mobile, noted Verblow. The analyst attributes that fact to the kind of reach banner ads have.

Indeed, over the past half a decade, there has been a continued increase in the number of consumers streaming video content that supports ads on their mobile phones. Meanwhile, those streaming for similar content on PC have been declining.
To add to the equation, long-form content has been grabbing a bigger share of mobile views resulting in higher ad rates.

From the last quarter of 2016 to 2017’s first quarter, there were 26% more viewers of long-form content on their smartphones.

Of course, it is a good thing when consumers prefer long-form content on the phone because that will mean higher rates for ads.

Viewers will likely be more engaged with the content. What’s more, advertisers will make the content to be of a higher quality and this will attract brands.

Another aspect that drives viewing is the improvement of smartphones- a better phone means a better video experience for the viewer.

The industry has seen many changes. Among them is the growth is the size of the screen of mobile gadgets. The number of users who own a phone with a screen of 4.5 inches or larger has increased from 60% to 66% in 12 months from 2016.

It helps that cellular providers are making data plan offers more affordable for their users making it easy for them to access video content on the go. As an example, February 2017 saw Verizon bring back unlimited data option. Since then, other carriers have followed suit.

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