I’ve spent much of the past few years preaching the need for businesses to move budget into mobile video advertising. It combines the power of video with the growing reach of mobile devices as the consumer choice for entertainment, personal interactions and buying. For a long time, my argument has been that this is where the marketplace is going and those that shifted spend to mobile more quickly would gain first mover advantage.
The argument has now moved from the mobile marketing revolution ‘will happen’ to ‘is happening’. Now I believe those who don’t move swiftly to take advantage of mobile video advertising won’t just be missing an opportunity to get ahead of the market but will risk falling dangerously behind. Indeed, the future of digital advertising is already here and it’s mobile – and marketers are finding that video is clearly the most effective means of reaching consumers via their smartphones, tablets and other portable devices.
Getting personal with the mobile consumer
The numbers make clear that marketers are already taking advantage of the easy personal engagement mobile offers. In the United States, digital advertising growth of 20% in 2015 was driven by a massive 66% jump in mobile ad spend, the Interactive Advertising Bureau (IAB) recently reported. Mobile advertising grew by a similarly spectacular 60% in the United Kingdom, with mobile video spend alone surging by 98%, according to another IAB report.
The growth of mobile marketing – and mobile video ads in particular – won’t stop there. New research by advertising consultant Warc and the Mobile Marketing Association shows that, across Europe the Middle East and Africa (EMEA), 91% of marketing professionals are planning to increase their mobile budgets in the next 12 months, with 45% projecting growth of at least 25%. The survey also made clear the growing importance of video in the mobile mix, as 65% said they would shift budget into mobile video over the next year.
Those who don’t move swiftly to take advantage of mobile video advertising won’t just be missing an opportunity… but will risk falling dangerously behind.
Kai Henniges, CEO and Co-Founder
Tapping into the global growth extending digital reach
Worldwide, mobile is already emerging as the most significant trend in marketing this year – and looks set to continue on this path over the next five years. According to PricewaterhouseCoopers’ (PwC’s) recently published Global Entertainment and Media Outlook 2016-2020: “Mobile advertising will be one of the big growth stories through 2020.”
PwC says mobile ad spend is expected to rise at a compound annual growth rate (CAGR) of close to 20% from 2016 to 2020 compared to 11% for digital advertising overall. Mobile video is expected to be a major driver of that growth, with its CAGR projected to top 30%. In other words, while internet ad spend is rising fast, mobile budget is growing faster and mobile video advertising is surging at an even more rapid rate.
Taking the smarter approach to leapfrog competitors
The sooner companies shift more resources into mobile marketing and adopt thought-out strategies, the better chance they have of gaining an edge over competitors. Not only that, but as more companies move into mobile, marketers are going to have to get smarter in their approach.
Using video advertising across mobile campaigns is a good start. The continuing deployment of 4G and the coming rollout of 5G have ensured that the growth of mobile video doesn’t slow. Indeed, recent research from Cisco projects that 75% of global mobile traffic will be video by 2020 – up from 55% last year. But companies and their agencies are also going to have to get smarter in their targeting too, relying on new technologies that make predictive mobile marketing a reality and enable them to hone their efforts to hit the right prospects with the right ads.