Marketers constantly learn more from mobile video ads

Tablet use is less active and more laid back than smartphone use.

Posted on Feb 21, 2013 by YuMe

Until recently, internet video ads were minor players in companies' digital marketing strategy. However, as more people turn to internet-connected TVs, computers and mobile devices to watch content, brands are quickly realizing the all-star value of pre-roll and mid-roll ads on these platforms. 

Whether for short videos on the web, on-demand shows or several hours' worth of streamed content – like the Super Bowl broadcast – investments in video ads online are skyrocketing. According to eMarketer data cited by Reuters, spending on online video ads shot up 46 percent in 2012, making it fastest growing form of online advertising.

With video ads harnessing so much attention among marketers, they aren't just dominating online advertising budgets. They're tapping into brands' television marketing efforts as well. The question is which platform is leading the trend.

Do mobile ads trump TV commercials?
A recent experiment examined how video ads on mobile effectively reach consumers.Automaker GMC partnered with Tapjoy, a mobile app maker, to advertise its Terrain SUV, Online Media Daily reports

After creating the mobile ad content and reviewing its success, Nielsen found Tapjoy's creation proved more successful than TV ads in terms of brand linkage and general recall. In addition, the 67-second mobile video had a completion rate of 80 percent. 

"What this data shows is that mobile video ads are a viable, and perhaps more importantly, an effective advertising alternate to TV commercials," Peter Dille, CMO at Tapjoy, told Online Media Daily.

Making mobile work
"Mobile continues to be one of the most exciting, highest-growing segments within digital and specifically digital video," said Ed Haslam, senior vice president of YuMe, in an interview with The Guardian.

Tablet and smartphone penetration is increasing while bandwidth capabilities are expanding and internet connectability is becoming a constant for consumers, Haslam said. As a result, video consumption on these gadgets is expected to continue to increasing at a rapid pace.

While mobile is often thought of as a direct response platform, more brand advertisers are interested in how audience members consume content when they aren't actively using apps or checking email and Facebook.

"A tablet is in essence a TV in your lap, unlike a smartphone which is more of a utilitarian device in addition to being a video viewing device," Haslam said.

Finding the right balance between more specific direct response campaigns and general brand awareness efforts is proving an interesting challenge for advertisers.