Yahoo Readies NewFronts 2015, Delivers Video Through Native, App Install Ads

Yahoo released native video and video-app install ads Wednesday, days before NewFronts 2015 takes place next week in New York.

While the video ad format aims to help advertisers looking to create brand awareness and performance-based objectives, the video app install ads will allow marketers and developers to promote their apps across Yahoo's network of 10,000 app publishers through Yahoo Gemini.

Yahoo's research shows that consumers who download an app after watching a trailer use the apps 40% more often and 20% longer each time compared with regular display install ads.

This year, U.S. adults on average will spend 76 minutes watching digital video daily, according to eMarketer estimates.

The uptick in revenue from video streams was boosted by the BrightRoll acquisition. Yahoo reported $1.04 billion in revenue, earning 15 cents per share. While display advertising revenue fell 7% to 381 million, mobile, video, social and native advertising grew more than 58% to $363 million compared with the year-ago quarter.

"In the U.S., video streams grew 262% year-over-year and almost 150% sequentially," said Yahoo CEO Marissa Mayer, during the earnings call Tuesday. "Watch time per unique user grew, which sometimes decreases with autoplay, videos that automatically play without sound, grew 50% quarter-over-quarter."

Consumers show that they love to engage with digital video across all types of devices. Overall, the U.S. digital video advertising will reach $7.77 billion this year -- up from $5.81 billion in 2014, according to eMarketer. About 12% of the video ad spending came via programmatic buys in 2014, a figure that will rise 40% by 2016. Mobile video ads will account for approximately 33% of digital video advertising in the U.S. this year.

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