In this edition of Mobile Monday, we are examining what the latest consumer behavior data means for digital video and the advertisers trying to captivate users through the power of sight, sound, and motion.
If the latest data and forecasts from Zenith are any indicator, video advertising budgets will continue to trail behind consumer behavior. While consumers already consume 60% of their digital video through their mobile devices, current video advertising spend is more evenly split.
On top of this, 72% of all digital video consumption is expected to take place on mobile devices by 2019.
With such an impressive growth rate, one would expect advertiser behaviors to follow closely. However, if consumer behavior rushes like a waterfall, advertiser budgets move like a steady river, creating a lag in where consumers are versus where the ad dollars are being spent.
Despite this lag, global video spend on mobile is now overtaking desktop, pacing for $18B in 2018 compared to desktop’s $15B.
What’s most interesting about this the rate at which mobile video advertising is surpassing desktop. Just last year, Zenith reported that mobile video advertising was a $7.3 billion industry, a number that will be more than doubled by this time next year.
Meanwhile, desktop video is holding relatively steady, with 2018 numbers expected near what was seen in 2016. To visualize this data, Recode created this helpful chart:
So where is the spend coming from? According to benchmark data from eMarketer, outside of app install marketing spend, the top categories are CPG (19%), finance & business (15%), retail (12%), auto (12%), and entertainment (10%).
The fact that CPG leads brand mobile video spend is just another indicator that brand performance campaigns are continuing to show meaningful & measurable outcomes for the brand behemoths that leverage them.
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Mobile Monday examines the latest news, trends, and developments in mobile apps, tech, and advertising. Do you have a story to share for the next Mobile Monday? Tweet it to @AdColony. For the latest AdColony mobile news and updates, follow @AdColony on Twitter, like us on Facebook, or connect on Linkedin.
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