5 Reasons Mobile Video Ads Outperform Online Video Ads

by May 17, 2011, 8:00 AM

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Not all video advertising is created equal. Mobile video ads -- video ads shown on tablets, smartphones, iPod touches and other portable devices -- drastically outperform online video ads. Users are far more likely to watch and interact with mobile video advertising than online video advertising.

At my company, Rhythm NewMedia, completion rates for mobile video ads average 88%, while completion rates for online ads are much lower, just 54% according to video monetization service FreeWheel.  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.

Why do mobile video ads perform so much better than online video ads? Here are five major reasons.

1.  Mobile video is more immersive than online video
The key problem for online video ads is multitasking. While online, consumers often have multiple tabs, windows and programs open. Online video ads often get tucked behind something else and go unseen -- even though the systems serving these ads may count these as views. Mobile devices on the other hand, provide a single task video experience; it's unusual to be doing more than one thing. The mobile experience is more oriented toward media consumption and therefore, more immersive than the online experience. Immersion is the key to delivering the emotional impact of a video ad. When it comes to single focus immersion, mobile video reigns supreme.

2. Mobile video is full screen
Again, online video advertising is the victim of distraction. Most online video ads are in banner, various-sized rectangles or skyscraper ads.  Even when in-stream, online video ads rarely fill the entire screen. Typically, Web pages include multiple ads, as well as the content the user is seeking. Meaning, the consumer is less likely to pay attention to the video ad. In contrast, mobile video ads are full screen, holding the consumers full attention and thus, increasing the ad's effectiveness.

3.  Mobile video is used throughout the day, increasing completion rates and recall
According to data from Rhythm NewMedia, mobile video is consumed consistently throughout the day, not mainly during peak "prime time" hours. Consumers use their mobile devices in the morning, at work and even in their homes at night. Spreading the ads out over the day, as opposed to crushing them into prime time, leads to reduced ad clutter and better impact.

4. Application based video on mobile devices provides a more engaging experience
Consumers spend more time using applications than the voice capabilities on smartphones.  Because of this and the rapidly increasing adoption of tablets and smartphones -- nearly one-third of mobile subscribers use smartphones -- a majority of mobile video is application-based.  In fact, consumers watch 5X more video in apps than on the mobile Web. Advertisers have much more control over the user experience in applications than online, giving them the ability to create a much more sophisticated and engaging experience.

5. Mobile video ads are precisely frequency controlled
Mobile devices are specific to an individual consumer, unlike PCs, which can be shared in a household. Moreover, cookies, which are the basis for online video ad frequency management (other than signed in subscribers), are increasingly less reliable. With this, mobile devices provide advertisers far more control over the frequency that video ads are served, preventing wasted impressions.

Mobile video ads far outperform their online equivalents. While it is true that online video ads currently have greater scale and reach, mobile video use is growing quickly, and may soon overtake online.

As Mary Meeker, a partner at a Silicon Valley VC firm, pointed out, mobile traffic is projected to increase 26X in the next five years. Marketers should understand not only that mobile usage is growing, but that mobile video advertising provides a more immersive and engaging interaction than online video advertising. At the end of the day, mobile video is a more effective platform for creating and expanding brand relationships with consumers.

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0 comments on "5 Reasons Mobile Video Ads Outperform Online Video Ads".

1. Michelle Calvagno from Playwire
   

   commented on: May 17, 2011 at 11:53 a.m.

   Makes a lot of sense...Users are constantly plugged into their mobile devices. The opportunity to interact with apps and mobile video is exponentially higher than online video - resulting in more use throughout the day and higher completion rates.

2. JoAnna Foyle Abel from Adap.tv
   

   commented on: May 17, 2011 at 11:56 a.m.

   Greetings from FreeWheel offices in NYC! We're glad you found our Video Monetization Report of use, as it reflects how our customers – the largest media companies including Turner, ESPN, VEVO, Discovery, FOX, and others – are monetizing their professional content across wired AND mobile devices.
   
   We are unclear as to where you found a data point suggesting that “completion rates for online ads are much lower, just 54%.” You can reference and download our 2010 year-end report here (http://www.freewheel.tv/theroundup/reports/freewheel_video_monetization_report_full_report_2010/), and what you’ll see is that completion rates for online video ads across our system (pre-roll, mid-roll, and post-roll) are 66% on average for pre-roll, 91% on average for mid-roll, and 50% on average for post-roll. Within long-form content (20+ minutes), these numbers increase to 81%. We’re about to release our Video Monetization Report for Q1 – you can shoot me an email (press@freewheel.tv) if you'd like to receive it.
   

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