Mobile video ads have taken the programmatic advertising ecosystem by storm. Not only does video pull us into the experience like no other format can, enticing us to pay more attention to ads, but the enormous projected growth and revenue-earning potential of mobile video ads also commands attention.
Scale of Mobile Video Ads
Video advertising is currently the fastest growing mobile ad format. As it all plays out, mobile is quickly closing the once considerable gap previously led by desktop in terms of video ad spending. Cowen and Company predicts that, by 2018, ad spend in mobile video will not only double - weighing in at a massive $9.9 billion - but will even overtake that of desktop video in the U.S.
Publishers and app developers should also note the mounting evidence that mobile video is increasing in value relative to other ad formats. In a recent eMarketer report on digital video ad effectiveness, experts found that mobile video engagement and click-through-rates are more than double that of desktop. Higher engagement - in the form of a video ad - attracts top quality advertisers and earns higher returns for publishers who can deliver a more engaged audience.
Smaato's latest Global Trends in Mobile Advertising report shows that mobile video ads drove 11 times higher eCPM for publishers - a +1,042% uplift over traditional ads in Q1 2016.
Where to Start with Mobile Video
Between creating a fluid ad experience, understanding video standards, and tracking views and interactions, the mobile video advertising landscape can daunt publishers at first glance. VPAID, MRAID, viewability and In-app vs. Mobile Web are only some of the ABC’s of video jargon that marketers and developers need to understand in the VAST (pun intended) mobile video ecosystem.
Smaato has deep expertise in navigating the often complex world of delivering high quality mobile video advertising, so publishers and app developers needn’t be afraid to ask for support. To get you started, here’s a crash course in some key mobile video advertising constructs.
Instream Ads - Classic, standard video ad format in which a video ad plays either before (pre-roll), during (mid-roll) or after (post-roll) video content.
Interstitial Ads - Full-screen ads that cover 100% of the real estate in the given application in between specific app transitions. Impactful, to say the least.
Rich Media - Enhanced ads that use audio, video, or other elements to encourage user engagement.
MRAID - “Mobile Rich-media Ad Interface Definitions”, is the International Advertising Bureau’s (IAB) set of standards that define a common API for rich mobile media ads. Simply put, it standardizes how a video or rich media ad should play on mobile.
Native Video Ads - These video ads conform to the natural environment of the content in which they’re viewed.
Outstream Video - Video ads that play outside non-video content (i.e. between text on the page). These ads only fire when the ad is in view, delivering Media Rating Council (MRC) certified viewability, and are nearly impossible for a bot to trigger. Smaato outstream functionality is due to roll out Q4 2016, but here’s a sneak peek:
Viewability - The metric that aims to track ad impressions that are truly seen by a human. At least 50% of the ad’s pixels must be visible on a screen for a minimum of two consecutive seconds, as defined by the MRC in conjunction with IAB.
VPAID - The “Video Player Ad-serving Interface Definition” is code that tells the video player how to make an ad interactive. This is another IAB standard. VPAID is also coming soon on the Smaato Publisher Platform (SPX).
VAST - The last of our IAB alphabet soup, VAST is the “Video Ad Serving Template” used to structure ad tags that serve ads to video players. In other words, it’s the translator that allows ad servers and video players to speak a common language.
Press Play on Video Ad Monetization
As expected, we continue to see more and more app developers offering HD quality video inventory. Yet, mobile video advertising requires both technical and creative expertise, and many still wonder how it is done. From grasping video standards to tracking views, weeding through the forest of the video ad landscape leaves many app developers scratching their heads.
Working with an experienced ad tech provider like Smaato makes setting up effective video ads much easier than you might think. If you’re ready to improve your app monetization strategy, you can either start by learning more about available ad formats on Smaato, downloading our SDK or integrating our latest API.
Lights. Camera. Advertise.
While advertisers are busy creating genius content for their brands, publishers and app developers should be gearing up their apps to provide quality video ad inventory. Expanding your mobile ad formats to include video placements will attract advertisers looking to reach your highly engaged audience. Once integrated with Smaato, you’ll earn more revenue with mobile video ads from top-quality demand sources day after day.
Our expert team is here to assist you every step of the way. Once you're signed up with the Smaato Publisher Platform (SPX), you are ready to monetize using video ads with Smaato. Please reach out to firstname.lastname@example.org, and one of our regional account managers will contact you to get started with video ads. That's it. It's that easy to go LIVE with mobile video ads that monetize your app!