/// Mobile Video Advertising: Why and How

June 1, 2011  |  Blog

By Ujjal Kohlii

Mobile Video Advertising: Why and How

Advertising is always finding new frontiers to reach and engage consumers. Consumers are responding more and more to video advertising viewed on their mobile devices. And advertisers are learning that this is quickly becoming the best brand-building platform ever. InsightExpress has found that mobile video campaigns lead to a 19X increase in aided awareness, a 4X increase in unaided awareness and a 2X increase in ad awareness when compared to online video campaigns. At my company, Rhythm NewMedia, we have seen a rush of brands and publishers to this medium because of its effectiveness and growing reach. Over 250 top tier advertisers have run campaigns on our premium mobile video ad network.  Ad impressions served on our network in Q1 of 2011 experienced a 36% jump over the quarter before.

There are a few reasons why mobile video advertising is such an effective brand medium. Using a mobile device is a single task focused experience. Meaning that most mobile video ads served on mobile are actually seen. In contrast, how often do you change the channel when a commercial comes on television, or how many windows and tabs do you have open blocking video advertisements online? Research released by IPG Media Lab shows that 63% of TV impressions were ignored. These other activities are much more multi-task oriented, impeding the effectiveness of advertisements served on those platforms.

Mobile devices also are more effective because they serve full screen videos. Online videos are rarely full screen and are often fighting for attention among a series of other advertisements and content on a webpage.  Full screen video advertisements on mobile devices hold the consumers attention engaging her in an immersive brand experience.

Having served billions of ads on our network, Rhythm has seen what does and doesn’t work in engaging consumers through mobile video ads. Combining video and display advertisements increases consumer engagement. Once having already been introduced to a brand through the immersive quality of a video ad, consumers are more likely to tap on banner and full-page ads. Display ads ran on the same property as an interactive in-stream video have a 45% to 50% increase in clickthrough rate.

Mobile video advertising can also immediately take advantage of a consumer’s interest in a product or brand. Advertisers have the ability to display buttons on a video offering the consumer options to engage further, including the ability to tap to the brand website to purchase a product, like a brand’s Facebook page, or tweet the advertisement. Consumers can also tap to see an extended brand video, up to eight minutes long. These opt-in options allow engaged consumers to continue the brand experience and immediately create an opportunity for viral communication or a purchase.

Mobile usage is rapidly growing. Currently, over 30% of mobile subscribers in the US have smartphones with 82 million people accessing the mobile web on their phones. Mobile usage in general is projected to increase by a factor of 22 in the next 5 years.  With a rapidly expanding market and unprecedented effectiveness, mobile video advertising can’t be ignored and sooner rather than later, may take over other mediums as the go-to advertising platform.

Ujjal Kohli is the founder and CEO of Rhythm NewMedia, the largest mobile video advertising network.  He was previously the CMO of AirTouch Cellular.

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