A recent study has shown that this type of media has become a main focus in smartphone advertising.
The results of a new study that have been released by AppLovin and AppsFlyer has shown that a considerable percentage of mobile ad budget has been focused on video, which has already been a growing focus in overall online advertising, regardless of the channel.
The study has shown that video is producing a growing amount of revenue and it boosts customer retention.
Throughout this year, each quarter has seen an increase in the amount of mobile ad spend that has been dedicated to video. In fact, there was a 32 percent increase in the first quarter and this skyrocketed by the time the third quarter came around, reaching a massive 66 percent according to the report on the research findings. Comparatively, the spending that was dedicated to gaming related content, rose from having been 16 percent in the first quarter to a much higher 46 percent by the third quarter. While that does show a large growth, it is still notably lower than what video was able to accomplish in the mobile advertising sphere.
That said, the study also showed that when it comes to mobile ad budgets, non-gaming video ad spend rose by 51 percent.
Among the main reasons that this growth has been occurring, according to the report on the study, was because of the retention factor. Video has been able to provide users with the encouragement they need to return after having viewed it.
Retention is rapidly becoming a central metric to define success in mobile marketing. In that vein, mobile video advertising brings about a better rate of retention for applications than non-video ads. Moreover, video ads that were displayed over Apple devices – smartphones and tablets – showed a 10 percent better retention rate than was the case over Android devices.
At the moment, video mobile ads have been providing a solid balance that marketers can both create and measure. This type of advertising is stepping in as a solution for a range of the challenges that have been faced by marketers when trying to conquer the mobile channel.