As per the report published by Forrester there has been a significant shift in the way people consume videos. Smart devices have now become one of the most popular ways to watch and share videos, and this change in the viewing habits is also fueling the rapid growth in the video advertisement category, especially in the last five year.
Present and Future
The smartphone is expected to represent 72% of the total increase in spending in the online video advertising category.
Whereas video ads which represent 50% of the total online advertising cost are set to reach 59% mark by the year 2023.
Mobile phone users are becoming more and more comfortable watching videos online using their smartphones, and one of the key reason for this shift is the gradual increase in the screen size from the age-old 3.5 inches to almost 6.5-inch mark in 2018.
If we talk about the mobile share of internet video time, it has expanded from 29% in Q1 2016 to 55% in Q1 2017. Same can be said about the length of a video, as consumers are increasingly preferring long longer videos.
Some more key insights :
- Forrester’s projection highlights numerous intriguing patterns, including the higher share of the mobile ad market
- The in-app share of mobile video clip will certainly grow from 78% in 2018 to 84% in 2023, the company has predicted
- The predisposition towards in-app advertisements for mobile video is based upon the fact that instream video ads constitute of more than 80% of video ad spending.
- Cellular suppliers are making it extra affordable to watch mobile video on the go with more economical data strategies.
- Video ads are more suitable as banners on mobile screens, too. While smart devices are less suitable than Computers for graphic banner ads in general, but when it comes to video banner ads, it is performing much better than it’s desktop counterpart.
While in-app video ads are set to be much more predominant, there are still some obstacles that they have to tackle as per the Forrester projection.
Restrictions on targeted ads will multiply, as seen in February 2018, when Google’s Chrome web browser began obstructing ads on websites that continuously violate advertisement criteria set forth by the Union for Better Ads.
Apple’s September release of iPhone 11 consisted of Intelligent Monitoring Avoidance in Safari– a feature designed to restrict cross-site tracking. Marketers are worried that this actions will certainly make it harder for them to target advertisements on Safari, which has a 54% share of the mobile browser market as per StatCounter. Apple this week announced additional improvements to avoid tracking in iOS 12.
The bias towards in-app ads for mobile video is based on the fact that in-app video ads make up more than 80% of video advertisement spending. More than half (54%) of online marketers said that in-app ads supply even more precise user data, compared with only 30% that stated the same for mobile web ads, per Forrester.
While in-app video ads will be going mainstream in the coming years, there will be challenges they have to face during their rapid growth. Meanwhile, marketers can continue to take advantage of this wonderful medium to reach out to their potential customers.