Business

IN THE NEWS: Mobile Video Advertising Growing 3X Faster Than Desktop

Blake Harris 08.12.2015

According to a new research report conducted by BI Intelligence (a subsidiary of Business Insider), US advertising revenue from PC and mobile video ads will top nearly $5 billion this year. An impressive number to be sure, but what’s ahead is even more staggering: digital ad revenue is expected to grow at a five-year compounded annual rate of 21.9% (which will take that total to $13.3 billion by the end of 2020).

First reaction: Wow.

Second reaction: How?

Due to the seemingly exponential growth (and usage) of platforms like Facebook, Instagram, Snapchat, Twitch, Twitter and, of course, YouTube.

Digital Video Growth

Here are some other key takeaways from the report:

  • Video will account for 41% of total desktop display-related spending in 2020, up from a 26% share this year.
  • In-stream video ads, including ads that play at the start, during, and after  video content, yielded click-through rates (CTRs) that were 18x higher than HTML5 banner ad units in February 2015, according to Google’s Rich Media Gallery.
  • Video ads tend to cost significantly more (i.e. 2x or 3x) than non-video ad units on premium publishers like Vice and Instagram.
  • Social video offers several major advantages from an advertiser perspective, including huge built-in mobile audiences, advanced targeting, and native-style ad units.
Blake Harris

Blake Harris

Blake Harris is the author of "Console Wars: Sega, Nintendo, and the Battle that Defined a Generation."
Blake Harris

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