Mobile and programmatic video continue to gain critical importance in the overall media mix for advertising.
The Interactive Advertising Bureau (IAB) State of the Digital Video World report affirmed the vital role that both mobile and programmatic play in digital video advertising, and uncovered some key differences in the digital video marketplace from country to country.
Russia sees greater potential for digital video advertising on the desktop/laptop Web than on mobile devices; while Denmark was the only country that emphasised the higher importance of user-generated media over premium TV content. Also of note: While 90% of responding IABs regarded live streaming content as least important among digital video ad formats, Mexico and Uruguay view live streaming as the most important.
“An abundance of innovative programming is jumpstarting digital video into an international phenomenon,” said Anna Bager, SVP and GM for mobile and video, IAB. “And, if marketers, agencies, and publishers want to take full advantage, they’ll need a wealth of international and regional insights at their fingertips in order to adjust their plans market-to-market for optimal impact.”
The IAB and its Digital Video Center of Excellence, examining opportunities for the medium’s growth, also saw some common challenges rise to the surface, including ad blocking, the fragmentation of video technology, and the variations of data and metrics across video platforms.
The IAB also recently uncovered that mobile screens are regularly being tapped for streaming longer-form video. A full 36% of total respondents said they watched videos that are five minutes or longer on their phones daily or more frequently.
Smartphone video viewers in Turkey, Finland, China, Russia and Singapore are particularly frequent viewers of such videos.
In addition to advertising, the study shows that there is potential for mobile video monetisation through subscription and pay-on-demand models. Still, there are barriers to overcome: 78% of respondents overall stated that they would rather have free mobile video supported by ads.
The news comes as global advertising spend is forecast to grow by 4% in 2015 to reach $529 billion.