Why 2015 is the Year Mobile Video Ads Really Take Off

Posted by , CMO, Tapjoy
13th February 2015

If you thought 2014 was a banner year for mobile video ads, just wait until you see what happens next. According to an eMarketer report, mobile video ads more than doubled in 2014, making it the fastest-growing category in all of advertising. We’re getting the distinct impression that 2015 will be the year that mobile video advertising really comes into its own—both as a way to monetize mobile apps as well as a way for brands to get their messages seen, heard and acted upon.

Here are several reasons why we feel mobile video ads really take off in 2015:

1) Video is among the most impactful and user-friendly rewarded ad formats.

Rewarded ads—the type that effectively sponsor premium content or virtual currency for consumers—have become increasingly popular in mobile apps as freemium developers track how these ads drive increased long-term engagements in their apps. By offering non-paying customers ad-sponsored access to premium content, rewarded ads are a sure-fire approach to engagement for a large freemium customer base. And while all rewarded ads have this impact, videos are among the most popular type of rewarded ads because they are “low friction” for consumers to complete and are also entertaining for target audiences. Rewarded video ads are a great example of a win-win-win between advertisers, developers and consumers.

2) Developers are smarter about when and where to integrate video ads.

Not only is video more user-friendly than most other ad formats, but as developers become more sophisticated about when and where to integrate video into their apps, it is becoming more relevant to the in-app experience as well. Video ads work best when they are integrated into the app in a seamless, non-intrusive way, and with solutions such as Tapjoy’s new Marketing Automation platform, developers are able to deliver videos at specific moments that provide the perfect context. Say a gamer lost her last “life” in an action game but wanted to extend her gameplay. The developer could offer the user the chance to watch a quick video in order to earn an extra life. Another user might want to access a premium feature but won’t want to pay for it. He could watch a video or two and gain access to the locked content. The technology is now available to let developers deliver contextually relevant rewarded video ads at just the right moment, which helps them monetize more of their user base. It also enables brands to be seen as heroes for providing premium entertainment content without having to pay with hard-earned cash.

3) Brands are shifting ad dollars from TV to mobile.

The titanic shift that advertising pundits have predicted for years has finally begun. It’s no longer a secret that consumers now spend more time on their mobile devices than watching TV, and brands are beginning to shift ad budgets accordingly. The IAB polled 5,000 senior advertising execs and found that 75% plan to shift budget from television to digital video ads, while eMarketer predicts that by 2018, spending on digital video advertising will eclipse television spending for the first time. And at least half of those ad dollars will go toward mobile.

4) App trailer video ads are driving high-value app installs.

Many app marketers have discovered that video trailers are among the best way to drive high-value users to their app—users that tend to stick around longer, engage more deeply and monetize more effectively. Game trailers not only show-off an app’s gameplay in a far superior manner than banner or text ads, but also allow the viewer to make a more informed decision on whether or not the app suits their tastes. With more app developers marketing their apps with trailer videos, the increased inventory and bid rates will lead to more revenue for app publishers promoting these types of trailer placements.

5) Broadband 4G LTE infrastructure is ready.

Wireless carriers such as Verizon, AT&T, Sprint and T-Mobile are all aggressively deploying 4G LTE networks throughout the world. At the 4G World/Tower and Small Cell Summit last September, it was reported that there were 280 million LTE subscribers across 320 commercial networks operating in 111 countries. 4G LTE—“4G” standing for “fourth generation” and “LTE” for Long Term Evolution”—is shorthand for a technical process that enables wireless users to download content at speeds four to five times faster than 3G networks. That’s pretty close to the speed of many home broadband connections. With a large 4G LTE infrastructure in place, hundreds of millions of consumers are now able to download apps, surf the mobile web, and, yes, stream video ads much faster and more efficiently than ever before.

6) Video ad targeting is becoming much more effective.

As ad-tech platforms become increasingly sophisticated, the overall monetization and conversion performance of video advertising is also becoming more effective. Better targeting options are available to make sure users are shown ads most likely to be of interest. Frequency capping options guarantee that target customers are shown a given ad the optimal number of times. Powerful analytics tools enable developers to understand their customers in detail and to enable video ads to the segments most likely to engage with the medium. With these and other tools now on the market, we can be confident that video ads are reaching the right users at the right time and with the right message.

How to get started with mobile video ads.

If you’re a developer looking to integrate mobile video ads into your app, it’s easier than you might think. The Tapjoy SDK offers multiple ways to integrate video ads, whether through the Tapjoy Marketplace or our Direct-Play ad unit, which literally lets you embed rewarded video ads by placing a small button or text link anywhere within your app. Click here to download the SDK.

If you’re an advertiser interested in promoting your product or service using mobile video ads—or an app developer looking to promote your app via a video trailer —that’s incredibly easy as well. Contact us to get started.

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