A few years ago, mobile advertising seemed to be one of the biggest challenges to advertisers with many struggling to monetize the huge traffic they received from their target audience. The likes of Alphabet’s (GOOG) (GOOGL) Google and Facebook (FB) were good examples as they failed to match their massive user-bases with monetization levels achieved on their respective desktop platforms.
However, that has since changed, and now, mobile advertising is one of the most crucial forms of advertising in most businesses’ marketing strategies. Traction in this business space began with text ads, then came display ads, and finally video ads.
Video advertising has since grown to become more popular on mobile platforms than it is on desktop platforms. In fact, according to this article published on online video, a recent study showed that “75 percent of global internet use will be mobile in 2017, with 60 percent of global digital ad dollars pouring into mobile advertising by 2018.” The same report predicts mobile ad expenditure to hit $134 billion in 2018, which is more than what will be spent on mainstream media (newspaper, magazine, cinema, and outdoor advertising put together).
As such, this indicates that while publishers were slow to adapt to the latest trends in video advertising, they have picked up over the last few years and now the likes of YouTube and Facebook’s Sponsored Videos can brace themselves for a real challenge.
The developments in mobile video advertising have attracted the attention of several online video production start-ups, which has increased competition in the market thereby promoting innovation. Most video production companies such as the Australian-based Creativa have embraced the paradigm shift in the video advertising market by offering creative video content to clients. And in a bid to keeping up with the current market trends, some have focused on increasing video engagement by creating customized video content that promotes interaction between the target audience.
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