Video ads deliver better results than any other mobile ad format. That cheery finding comes from the Q1 2016 Global Trends in Mobile Advertising report issued today by mobile ad platform Smaato.
To arrive at its finding, Smaato compared the eCPMs of ads on its platform. (eCPM means “effective cost per thousand,” and is a ratio used to compare ad units with differing numbers of impressions.) It found that the eCPM for mobile video ads increased by 27.9 percent from Q4 2015 to Q1 2016, and was 11 times higher than that for text and display ads. The upshot, the report says, is that advertisers use video to reach an engaged audience, and publishers are benefiting.
The Smaato report also looks at video ad rates in different geographies, and finds that advertisers in the Americas are willing to pay the highest premium on mobile video ads. The EMEA (Europe, the Middle East, and Africa) region has the lowest rate, while APAC (Asia-Pacific) is in the middle.
Next, the report looks at eCPMs for mobile app categories to learn where mobile video ads are the most lucrative for publishers. By a large amount, eCPMs are highest on music apps when compared to average eCPMs on the Smaato platform. This is followed by video and computer game, society, real estate, travel, and news apps.
For operating systems, eCPMs are the highest for iOS apps, followed by Android.
Citing data from eMarketer, the report notes that mobile video advertising faces challenges such as privacy concerns, the lack of global inventory, and creative hurdles, but suggests that these will resolve as the market matures and engagement rates remain high.
“Mobile video advertising is showing enormous growth potential, helping publishers to boost their monetization efforts and advertisers to engage their target audiences better,” says Ragnar Kruse, CEO and co-founder of Smaato. “It’s encouraging to see the continued overall strength of quarterly mobile ad spend growth, which is up 89 percent globally.”
For more results, download Global Trends in Mobile Advertising, Q1 2016 for free (registration required).