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Mobile Monday: The Rapid Growth of Programmatic Advertising in Mobile Video, Consumer Privacy’s Role in Ad Targeting

Posted Jan 27, 2020

With so many major players in the mobile advertising space, it’s hard to keep up with what’s current when planning advertising strategies for the year. Publications have been gathering predictions from industry leaders on mobile advertising trends for the rest of this year. Two common threads among professionals are the increased ad budgets for in-app ads and how targeting will be affected by consumer privacy regulations. Meanwhile, mobile video ads are generating huge numbers when sold programmatically. Get all the details in this week’s Mobile Monday!

Programmatic Mobile Video Ads Generated $19.93 billion in 2019
Smartphone adoption and the spread of 5G is changing the way we watch video content on mobile devices. Data consumption is being driven by mobile video not just for entertainment but also for advertising. Mobile video monetization is ever-evolving with the advancements in technology and programmatic advertising has been progressing along with it. According to eMarketer, Mobile video ads sold programmatically made $19.93 billion in revenue in 2019 in the United States alone and are expected to generate $24.87 billion this year.

Mobile programmatic video ads accounted for 87% of total mobile video ad spending in 2019. Native video ads made up approximately half of mobile video ads, which are overwhelmingly sold programmatically. The other 50% of mobile video ads were attributed to in-stream ads on Youtube, social media channels and OTT channels like Hulu.

Advertisers are seeing a much more competitive landscape so many publishers are establishing partnerships where they can sell ads via programmatic direct. Brands can buy through a reputable publisher with the advantage of brand safety while also being able to scale across worthwhile sites. 

Industry Leaders Expect Advertising Budgets to Shift to Mobile Apps
BusinessofApps recently gathered insights from thought leaders in mobile advertising on 2020’s upcoming trends in in-app advertising. A common thread is the shift of digital ad budgets from mobile webs to apps. Karim Rayes, Chief Product Officer at RhythmOne, believes this shift is indicative of how much time consumers are spending on their smartphones. Karim also predicts that “location-based targeting will continue to be top-of-mind and become more elaborate, and creatives will focus on video more so than display.”

Ad professionals are also predicting that consumer privacy will play a more prominent role in ad targeting based on data collection. Our Manager, Strategy & Planning, Gabriella Stano Aversa spoke about the increase in regulation and consumer privacy controls in the upcoming year. Gabriella stated, “With mobile gaming so far ahead of the curve on offering optional opt-in ad experiences through rewarded video, advertisers pursuing that channel will have less to worry about when it comes to being perceived as consumer-friendly and respecting privacy choices.” With many more regulations in place, brands can advertise in apps where location is used like weather, travel or even augmented reality in order to target users in specific locations.

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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?   

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