Editor’s note: Yoni Argaman is the vice president of marketing and business strategy at Inneractive.
Mobile video has been growing steadily for years but it is now close to justifying the hype that it generated throughout the years. Mobile video ad spend in the U.S. more than doubled from 2013 ($720 million) to 2014 ($1.5 billion) and will reach $6 billion in 2018, representing about half of the total online video ad spend.The growth in mobile devices, broadband coverage and 4G services, device screen size and video consumption on mobile devices are the first obvious drivers. Other, less obvious drivers relate to the way users consume video on mobile. More and more of users’ time on mobile is spent in applications (86 percent of users’ time in mobile in 2014).Since in-app video inventory is usually more engaging and can be coupled with more data, it is usually valued higher than mobile web video inventory. More users are watching video on tablets than on smartphones, which is another contributor to the bottom line since we are seeing that tablet video ad inventory is usually 30-50 percent more expensive than smartphone video inventory.Another interesting driver is the democratization of video production and distribution. Some of the most beautiful, professionally produced videos I have seen lately were created with smartphone video cameras. Talented individuals are creating niche category mobile video hubs,
Mobile video has been growing steadily for years but it is now close to justifying the hype that it generated throughout the years. Mobile video ad spend in the U.S. more than doubled from 2013 ($720 million) to 2014 ($1.5 billion) and will reach $6 billion in 2018, representing about half of the total online video ad spend.The growth in mobile devices, broadband coverage and 4G services, device screen size and video consumption on mobile devices are the first obvious drivers. Other, less obvious drivers relate to the way users consume video on mobile. More and more of users’ time on mobile is spent in applications (86 percent of users’ time in mobile in 2014).Since in-app video inventory is usually more engaging and can be coupled with more data, it is usually valued higher than mobile web video inventory. More users are watching video on tablets than on smartphones, which is another contributor to the bottom line since we are seeing that tablet video ad inventory is usually 30-50 percent more expensive than smartphone video inventory.Another interesting driver is the democratization of video production and distribution. Some of the most beautiful, professionally produced videos I have seen lately were created with smartphone video cameras. Talented individuals are creating niche category mobile video hubs,
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