Mobile expected to take up big chunk of revenue soon

Mobile video and advertising is continuing its rise in popularity.

Posted on Dec 17, 2013 by YuMe

The popularity of mobile devices has been skyrocketing in recent years, something that has clearly gained the interest of advertisers everywhere. Mark Sweney of The Guardian reported that the advertising economy will largely be driven by mobile, citing information media buying group ZenithOptimedia​, which said it will likely account for more than one-third of the $90 billion in revenue expected in 2016. About 36 percent of the money will be spent on advertising to those with smartphones and tablets, so organizations should expect spending on mobile video ads to rise considerably in the next few years.

Sweney said there has been a big contrast to the upheaval which was caused by Internet ads on PC and desktop devices, which hit the print industry hard and took away its revenue. Jonathan Barnard, head of forecasting at ZenithOptimedia, said the new platform is actually expanding the consumption of media without getting rid of another format, the first of a new platform to do so in the past 20 years.

Other from this forecast showed:

  • Mobile will be worth $45 billion by 2016, making it bigger than radio, cinema and outdoor advertising
  • The global ad market is worth $500 billion in 2013; there is 5.3 percent growth in 2014 and 6 percent expected growth for 2015 and 2016
  • Other online video ads should stay big as well, as desktop Internet advertising will account for 19 percent at $111 billion by 2016

Corresponding numbers from IAB
The Internet Advertising Bureau's "Internet Advertising Revenue Report," which was conducted by PricewaterhouseCoopers, found that online advertising was at about $20.1 billion for the first half for the year, an increase of 18 percent from the same point last year. Sherrill Mane, senior vice president of research, analytics and measurement at IAB, said that the growth of mobile ads has been due to the excitement of customers and the willingness of companies to go where the people are.

"Video does capture the imagination of big brands, and big brands are looking to follow audiences," Mane told AdWeek, noting that Web-native video content is continuing to grow larger.

It is still unknown how much native advertising will move its stride forward, as the definition of what it means to be a "native" ad is still in the air. However, companies that craft videos specifically for mobile devices like they would an online video ad just for a laptop or desktop will likely see great results.