MediaPost: Video ads account for 10% of mobile ads for the first time

According to Opera Mediaworks' October 22 report on the state of mobile advertising, Android is catching up with iOS, the gap in mobile advertising revenue is getting smaller, and now its traffic share is almost twice that of iOS.

At the beginning of the year, Android traffic surpassed iOS. In the third quarter, the gap widened further (Android vs. iOS: 25% vs. 30%).

In terms of profitability, Google's mobile OS revenue increased by 3 percentage points to 42% in the third quarter. Apple still holds the top position with 51% of revenue, but it has slightly decreased from the previous quarter (53% in the second quarter).

In the U.S., video ads accounted for 10% of mobile ads for the first time. In addition, according to a report by mobile video ad platform AdColony, video eCPMs (effective cost per thousand ads) are 8 times that of banner ads and 2 times that of rich media ads.

Will Kassoy, CMO of Opera Mediaworks and CEO of AdColony, believes that “…we are seeing brands continue to enhance their visual, audio and emotional messaging…investing in mobile video advertising…as a key part of their marketing strategy…Mobile video…with its high production value content…and customers’ insatiable demand for video experiences…is becoming a huge catalyst for all industries…”

Other highlights from the report include:

Mobile video shows rapid, complete growth

• In 2014, mobile video traffic increased 3.5 times, and mobile video advertising is still the fastest growing category in mobile advertising.
• Overall, brand spend on in-app HD mobile video ads grew 36% month-over-month.
• Advertisers’ video campaigns on apps in the Shopping, Sports, Social Media, and Health & Fitness categories grew from over 80% to over 90%.
• Short videos are becoming increasingly popular, with more than half of video ads being under 20 seconds.
• Entertainment brands prefer mobile video ads, with 22% of traffic coming from their campaigns.

iOS 8 adoption rate is lower than iOS 7

• One week after iOS 8 was released, usage on Apple devices was less than 29%, compared to 65% one week after iOS 7 was released in 2013, almost double the usage of iOS 8.

American's breakout season

• While the U.S. remains the leader in both traffic share and revenue share at 44% and 58% respectively, non-U.S. regions (Canada, Latin America and the Caribbean) have nearly doubled in the past year and now account for 10% of global mobile ad traffic.
• Mexico and Argentina are the largest growth-driving markets
• Mobile video revenue growth remains strong in the US, accounting for 10% of global revenue
• Europe ranks second with 17% of traffic

Social media is still No.1

• Social networks remain the most popular platform for mobile advertising, accounting for 25% of ad traffic, while music, video & media sites and apps drive the majority of revenue, accounting for 23%.

199IT compiled from: //www.mediapost.com/publications/article/236980/mobile-video-advertising-still-the-hot-ticket.html?edition=77434