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Video Scores Big as Fastest-Growing Mobile Ad Format

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Posted by Courtney Reich on September 18, 2017
Q2 2017 Global Trends in Mobile Advertising

Video is winning the mobile advertising game. Unique in its ability to score big with advertisers and publishers alike, video was the fastest-growing mobile ad format on the Smaato platform in Q2 2017 as publishers doubled-down on mobile video ad spending. Rewarded video took home the prize as the fastest-growing video ad format.

To uncover the latest mobile video advertising trends, we analyzed the over 1.5 trillion ad impressions served on the Smaato platform in Q2 2017 in our latest Global Trends in Mobile Advertising report. This report provides insights into the mobile programmatic landscape on the Smaato platform last quarter and closely examines the growth of mobile video ad spending and eCPMs, which video ad sizes attracted the most ad dollars and the rapid rise of rewarded video ads.

Video Is Mobile’s MVP

Mobile video takes full advantage of the interactivity of mobile, boasting engagement and conversion rates that outperform other ad formats.¹ Mobile video ads also provide an excellent monetization method for publishers, offering high eCPMs and positive user experience. It is, therefore, not surprising that mobile video took off in Q2 2017, showing phenomenal acceleration in ad spending growth.

Mobile Video Ad Spending Growth

In the last quarter alone, video ad spending more than doubled (+142%) on the Smaato platform, making it the fastest-growing mobile ad format, followed by Native with +50% ad spending growth during this period. Mobile video’s rise to the top reflects a greater overall industry trend — mobile video ad spending grew +146% in 2016 in the US² and now commands over half of total US mobile ad spending.³

Mobile Video Ad Spending by Video Ad Size

Gaming Apps Hit High Scores With Rewarded Video

Of the full-screen video ad formats, rewarded video ads reigned supreme. According to Mary Meeker’s 2017 Internet Trends, 68% of users reacted positively to in-app rewarded video ads.⁴ This positive user experience has led both advertisers and publishers to embrace this video ad format — in the past quarter alone, rewarded video ad impressions almost doubled (+96%), ad spending increased an impressive +153% and eCPMs grew +48%.

Rewarded Mobile Video Ad Growth

Rewarded video ads are particularly popular and user-relevant in gaming apps, where publishers have quickly embraced this ad format. Gaming apps that utilize rewarded video ads see up to 4X higher user retention than apps that do not.⁵ It is no wonder that rewarded video ad spending in gaming apps increased +242% from Q1 to Q2 2017 on the Smaato platform, as advertisers and publishers alike recognize the value of this highly engaging format.

Rewarded Video Ad Spending Growth in Gaming Apps

Total video ad spending for gaming apps was split almost evenly between rewarded and non-rewarded interstitial video ad formats in Q2 2017. However, rewarded video ads are gaining ground in the battle with interstitials for total video share in gaming apps, as rewarded video picked up nine share points from interstitial video in one quarter alone. In light of its higher growth rate, rewarded video ad spending may soon exceed that of non-rewarded interstitial on the Smaato platform, perhaps even within Q3 of this year.

Interstitial Video vs. Rewarded Video Ad Spending in Gaming Apps

For more insights into the mobile programmatic advertising landscape, download the Q2 2017 Global Trends in Mobile Advertising report. In this report, you will discover:
  • Which countries fueled mobile ad spending and eCPM growth
  • In-app’s record-high share of mobile ad spending
  • The value of in-app vs. mobile web ad space
  • Which mobile OS claimed the majority of mobile ad spending
  • The immense value of gender data in mobile advertising
  • How advertisers can leverage the mobile opportunity in China
Download the Q2 2017 Global Trends in Mobile Advertising Report!

InMobi, August 2017
IAB, April 2017
J.P. Morgan, August 2017
Mary Meeker, 2017
Tapjoy, May 2017

Written by Courtney Reich

Content Marketing Associate @ Smaato

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