Increased mobile usage forces companies to adjust advertising strategies

Increased mobile usage has created a fragmented digital video advertising viewing audience.

Posted on Sep 3, 2014 by YuMe

The popularity of the Internet, as well as mobile devices such as smartphones and tablets, has contributed greatly to the growth of digital video advertising. Mobile gives users the best of both worlds: a consistent connection to the Web and a second screen that can be used to watch videos. In fact, smartphone and tablet owners spend a substantial amount of time conducting Internet searches and watching digital programming on their devices. As a result, brands have had to adopt new marketing strategies to accommodate this behavioral shift.

Citing a study conducted by Toluna, a company that conducts consumer surveys, eMarketer stated people around the world are seemingly glued to their mobile devices 24 hours per day. Toluna's research revealed 79 percent of smartphone users in Germany engaged with their devices within 15 minutes of waking up. In the U.S., that number was 65 percent, while 75 percent of people living in France and 70 percent of U.K. residents did the same.

Within 15 minutes of going to bed, 64 percent of people living in the U.S. checked their smartphones. In Germany, the number was 76 percent, while France and the U.K. came in at 78 percent and 58 percent, respectively. These numbers indicate how attached many consumers are to mobile devices. No matter what time of day it is and regardless of the activity that an individual may be engaged in at the time, at some point he or she will pick up ther mobile device and use it for something.

This is excellent news for brands looking to deploy digital video advertisements to connect with these individuals.

How to deal with fragmentation
The widespread use of technology has created a much more fragmented viewing audience, especially considering that computers and mobile devices are now able to display video as effectively as a traditional television. To adjust, companies have had to incorporate multi-screen video advertising techniques to avoid missing out any opportunities to market goods and services to their existing consumer base. This strategy is also being implemented to raise awareness and brand recognition with other potential customers.

In an interview with eMarketer, Ann Rubin, IBM's vice president of branded content and global creative, explains in great detail how the company is addressing the fragmentation occurring in the consumer space.

"Our digital spend is half our total spend," Rubin said. "And within that, video buys and using video on all of digital is a very high percentage. We understand the importance of digital video and all of online - [it's] critical to reach our various audiences."

TV remains the most popular medium for viewing video content. However, with consumers using more screens, many people are of the opinion that television has essentially become an outmoded option for watching video. Of course, that doesn't mean that TV doesn't have a dedicated audience base, but those numbers are dwindling as more people cut the cord and rely strictly on the Internet and mobile devices to see digital programming.

This has forced companies to market products and services where people spend a majority of their time, as opposed to creating and deploying an ad designed exclusively for TV.

"Deliver the right content to the right person at the right time no matter what device they're on," Rubin told eMarketer. "Get rid of the barriers of platform, time and device. Figure out ways to use technology and data to deliver the right content at the right time regardless of platform."

Fragmentation within digital video viewing sector isn't necessarily a bad thing. It offers more marketing opportunities with a much broader audience than using TV alone. As long as companies know who their existing and potential customers are, they can achieve digital video advertising success.