Video Essentials

Video Advertising Exploding for App Marketers, Finds Survey

Video now plays a huge role in mobile app marketing. A full 50 percent of all app install spending now goes to video advertising. Half of that is for full-screen video ads, while the rest is for in-feed, social, and television video ads.

That information comes from mobile ad platform AdColony, which released its Spring 2017 App Install Marketing Survey today. The survey questioned the top 250 grossing app developers around the world about trends they’re experiencing, and got a 70 percent response rate. Most respondents were from mobile game developers, but one-quarter were from non-gaming app developers.

When asked if their ad campaigns shifted toward video in 2016, 74 percent of app marketers expressed agreement, while only 4 percent disagreed. For those new to the area, app install marketing means marketing mobile apps with the goal of getting users to download the app on their devices. It’s also called “user acquisition.” The vast majority of app install ad campaigns run on mobile devices.

The biggest loser for app marketing is television, with only 14 percent of developers indicating they were shifting their campaigns toward TV.

Video ads are popular with app marketers, with 96 percent using full-screen video ads and the same amount using social video ads. Full-screen video ads (which display during a break in content on an app) led for app install budget allocation by channel, with 25.2 percent of marketers allocating budget for full-screen video. Another 15.7 percent went to social video.

The reason app marketers are turning to full screen video is because they see it works for them. When asked about channel effectiveness, 69 percent said full-screen video is effective, and 67 percent said social video was effective.

“Top advertisers understand that there’s nothing more powerful than sight, sound, and motion to captivate a consumer’s attention and drive quality installs,” says Bryan Buskas, chief customer officer at AdColony. “That’s why video accounts for 3 of the 4 most effective app install formats listed by advertisers, and it’s why video now accounts for 50 percent of their total advertising spend.”

Looking ahead in 2017, app marketers are most excited about playable ads (45 percent), where viewers can interact with the ad content in some way—perhaps getting a feel for the game being marketed. The next highest rankings were 22 percent for full-screen video and 18 percent for social video.

“Every year we conduct this study, we ask advertisers which ad formats they are excited about, and every year, the most immersive formats come out on top,” notes Buskas. “This year, advertisers are the most excited about playable ads, followed by full-screen mobile video. What’s interesting here, however, is the effectiveness gap between full-screen video and playables. While nearly 70 percent of top advertisers consider full-screen video to be a very or most effective ad format, only 31 percent feel similarly about playables. This gap suggests that there is still room for improvement in the playables ad experience, something which we’ve been working toward.”

For more, download the full results on AdColony’s site (registration required).


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