Global Ad Spend Shifts to Mobile & Digital Video

Mobile’s ability to connect consumers everywhere has revolutionized the advertising space. Video is an especially natural advertising format for mobile advertisers, who can easily engage consumers with valuable brand and product information. With mobile at the forefront of advertisers minds, it’s no question that mobile video ads will continue to pop up across smartphones and tablets, engaging consumers with entertaining commercials and compelling offers.

eMarketer recently provided a detailed glimpse into video advertising, summarizing the trends in digital video advertising from around the world. We’ve pulled together some of the most relevant points in order to serve as a quick introduction to the $5.1 billion industry.

Market Size

According to eMarketer, an estimated 1.3 billion people will watch online videos this year, 185 million in the United States alone. In developing markets, many new Internet users are accessing videos for the first time on their smartphones.

Growing Markets

Central and Latin America are leading the growth in online ad spend, growing by 29% compared to the worldwide average of 14%. Online video investments are driving growth in the industry, with spend increasing by 38% worldwide, compared to a 27% increase for social networks and 14% for search.

In addition, digital video ads are incorporating interactive components in increasing numbers. While only 2% of videos were interactive in January 2013, by June that amount had grown to 11%.

National Comparisons

While mobile users in the United States remain the most monetized and lead the world in ad requests, the number of users in countries such as Brazil, India, and China are growing at a rapid pace. Meanwhile, as the third largest market for mobile advertisements (after Japan), the UK is seeing stable but reduced growth.

Spend on digital ads in the UK is expected to increase by 12% this year, reaching £6.1 billion, or $9.68 billion. Interestingly, search is projected to retain over 50% market share, although there appears to be increasing demand for video and real-time bidding formats. Mobile-specific spending is projected to increase a total of 90% this year, due to high smartphone and tablet adoption rates, as well as advertisers’ desire to engage the UK’s multiscreen users.

Brazil is among the fastest growing markets for online video, as a result of video viewers’ increasing usage. ComScore data demonstrated that online views per viewer grew 18% in Brazil, spending fifty more minutes per month streaming videos compared to last year.

In India, growth has been driven by both increasing video usage as well as by increasing numbers of viewers, with unique visitors to video sites rising by 69% since 2011 to a total of 54 million. During the same period of time, videos watched doubled to 3.71 billion/month.

China’s 289.9 million online video viewer market is increasingly adopting mobile. While only 4.5% of digital videos were viewed on mobile phones in September 2012, by May of this year that share had nearly doubled to 8.8%. PC video viewing time has slightly decreased, but may be attributed to the growth of mobile.

Market Growth

Going forward, the key to the growth of the digital video ad market will be targeting. 87% of surveyed marketers stated that targeting was an important factor when planning a branded digital video campaign, while 73% said that better targeting would affect an increase in their digital video spend. In addition, 58% of marketers thought digital video ads performed better than TV ads for achieving engagement goals, such as direct response.

As a result, 69% of brands plan to spend more on mobile, and 64% plan to spend more on video. Digital advertising companies that focus on delivering better targeting and engagement capabilities stand to gain much from brands’ increasing mobile and video spend, as compared to those companies that are focusing on measurement or reach.

At Aarki, we’re dedicated to delivering both targeting and engagement for all of our mobile advertising partners. With contextual, location, and demographic targeting capabilities, we’re able to reach relevant users in the right place at the right time. Our rich media platform, Aarki Studio, allows brands to measure a variety of user engagements and touch points (such as views, clicks, shakes, swipes, rotates, and more). If you’re interested in learning more about mobile advertising, email us at we look forward to engaging mobile consumers with you!

Topics: Industry News