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Mobile Video Growth Attracting Advertisers

15 May, 2013 By: Doug McPherson

NEW YORK – Video advertising on mobile devices is getting more viewers, and advertisers are opening their wallets a little wider to capture them, says a new eMarketer report dubbed, “Mobile Video Advertising: Choices for a Rapidly Changing World.”

eMarketer reports that the number of smartphone video viewers in 2014 will hit nearly 87 million, or more than one in four Americans – numbers big enough to lure bigger ad bucks.

U.S. ad spending for mobile video may quadruple from this year’s $518 million estimate to nearly $2.1 billion in 2016, e-Marketer reports. It adds that growth rates for mobile video ad spending will be far greater than for any other related channel – television, online or total digital.

But, e-Marketer also points out that while 2016’s figure will represent more than one-quarter of all digital video ad spending, it will still be less than 10 percent of all mobile ad spending.

eMarketer also says it’s “shortsighted” to assume that this year’s triple-digit growth means mobile video is becoming the dominant video ad format. In fact, while spending growth rates point to market energy and advertiser interest, a channel’s share of the total is a more important indicator of its place in the entire ad spending universe.

Mobile video advertising serves several potential objectives and offers a number of possible benefits for marketers, including: It cuts through the clutter.

Ujjal Kohli, CEO at Rhythm NewMedia, told e-Marketer that multitasking is “the enemy of branding. The requirements for branding include full-screen, immersive content. The stunning thing about tablets and smartphones is that somehow these systems have been designed to single-task when video is played. And it’s full-screen.”In second-quarter 2012, the average U.S. mobile subscriber spent 5 hours and 20 minutes per month watching video on a mobile phone, according to Nielsen. If one added in an estimate of time spent watching video on tablets, that mobile figure would likely be at least the same as the time people spent watching video online.

Data show the mobile video audience skews younger, with the 12-to-17 and 18-to-24 age groups indexing higher than average.

But all age groups spent far more time watching traditional TV, which is another reason why many brand marketers see mobile video advertising as a way to reinforce and complement their TV commercials, not replace them.

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