An MWC Wrap-Up: Mobile Video Ads Are Siphoning TV Budgets

Mobile World Congress has completed its yearly run in Barcelona, Spain, and video advertising was more a part of it than ever. As AOL Advertising learned in a February 2017 study, 77 percent of consumers around the world can’t stand to be away from their smartphones, and short-form video views are rising.

To help summarize the important MWC developments, AOL Platforms global chief mobile officer Mark Connon offered some perspective. First off, the area is growing—and quickly.

“Advertisers we spoke with largely confirmed what everyone knows—that they’re planning on investing more in mobile ads, with video driving most of the growth,” Connon reveals. “The industry is simply trying to keep pace with consumer demand, which is obviously massive right now. On average, 57 percent of consumers globally watch videos on a mobile phone every day, per AOL data. Accordingly, 47 percent of advertisers expect to increase mobile ad spend by at least 25 percent this year.”

When the Barcelona crowd talked about mobile video advertising, they asked who could deliver two important things: scale and quality. Both are needed for mobile video ads to succeed.

“Among both advertisers and publishers, mobile data quality and scale were hot topics,” Connon says. “For publishers, it helps more effectively merchandize inventory. For advertisers, it means better audience targeting across mobile. For vendors, the best philosophy to deliver here is an open one—offering multiple data sets to help advertisers build powerful brands and publishers make more money.”

Mobile video ad budgets are increasing, but where is that money coming from? Are advertisers simply shifting digital dollars around? No, mobile is hitting the mother lode, finally siphoning off funds from TV.

“Dollars for mobile have to come from somewhere. The where was a key part of the MWC dialogue,” Connon says. “Advertisers are funding their increases in mobile and mobile video by shifting more and more money away from TV budgets. If you look at the data, it supports that. According to eMarketer, 2017 will mark a major milestone for ad spending, as total digital surpasses TV for the first-time. Mobile is driving that, upending traditional ad budgets.”

Expect big things from mobile video in 2017, and look for the topic at MWC 2018 to be the hugely successful year the industry just experienced.


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