Mobile Video Ads Growing Fast; Will Mobile Video Trump Online Pre-Rolls?

Not only are consumers increasingly connected to their mobile phones, they’re also responding to the ads they see on handheld devices. A pair of recent studies confirms that advertising on mobile video isn’t just growing quickly; it’s growing effectively.

For starters, online video ad network YuMe reported that the number of mobile impressions jumped in volume by more than 80% from the third quarter to the fourth quarter of 2011, in its latest quarterly trend report. Mobile comprised about 5% of ads served in the fourth quarter, up from 2.7% in the third quarter.

YuMe also found that pre-roll ads, while still incredibly dominant, dropped to 89% of ads in 2011, down from 93% of video ads in 2010. Specifically on a quarter over quarter basis, pre-rolls dropped from 90% of all video ads in the third quarter to 86% in the fourth quarter, a drop YuMe attributes to more share coming from mobile phones and connected TVs.

Does this data suggest that mobile is on a path to overtake pre-rolls? There’s not enough evidence yet to draw that conclusion. However, mobile ad campaigns for the time being are among the most effective. Mobile phones generate a much higher click through - 4.5 times - than that of online video, according to a new report from video vendor Videology. On mobile phones the messaging is often more targeted, the calls to action are stronger, and consumers are also more connected to their phones, Videology said. A mobile phone feels personal and thus can elicit more response.

It’s also worth noting that a rising tide lifts all ships. New media works best in tandem and Videology found that campaigns using multiple screens of online video, mobile and connected TVs generated a 9 times increase in brand recall than those only using online video.

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