What the Year of the Mobile Video Ad Means for Your Brand

Last year, the mobile advertising industry was worth $13.1 billion. By the end of this year, that figure will jump to $18 billion.

Video plays a definitive role in mobile advertising’s explosive growth. Now that 30 percent of all videos are viewed on a mobile device, the entire sector is scrambling to capitalize on the trend.

As a result, the barriers to mobile video advertising are crumbling. Vungle, for example, is positioning itself as the “first-ever in-app mobile video ad exchange.” It won’t be the first to monetize multi-screen video advertising, however. Companies such as BrightRoll and YuMe are already jockeying for dominance, opening a new world of possibility to advertisers.

There’s ample demand, too. Now that digital video campaigns are easy to set up and deploy, advertisers — especially those who have traditionally relied on television ads for visibility — are eager to dive in headlong.

That’s why 2014 is the year of the mobile video ad. As a marketer, the potential benefits to your brand are tremendous. Here’s how to take full advantage of the growth.

1. Deliver critical info within the first five seconds.

Video advertising is a powerful way to increase brand awareness and recall. But certain platforms now allow users to skip an ad after just five seconds of streaming. Does this mean that you’ve failed when a user skips your ad? No. It just means you need to achieve your goals and get your brand and message across within the first five seconds.

When you create a video, display your brand name and URL right off the bat. Present your key messaging immediately. Even if the viewer elects to watch the whole ad, his or her attention will peak and fall quickly. Don’t waste time. Deliver critical information as soon as possible.

2. Engage the viewer.

On a fundamental level, your video is a vehicle for showcasing the strength of your brand. But if you don’t engage the viewer, nobody will pay attention.

Amplify your message by creating a memorable video. Remember the Old Spice guy? When the campaign launched, viewers were so enthralled that the videos went viral in a matter of days. The fact that people were eager to share a deodorant ad is remarkable, but viewers were far more excited about the humor than the product.

Don’t rely on the strength of your product to hold the attention of your viewers. Entertain them with truly engaging content.

3. Encourage sharing through earned media.

People will share things that resonate with them on a personal level. So when your video includes hashtags and other calls to action via social media, it empowers viewers to make your message their own.

A good video that has earned media tie-ins will spark a conversation. Make it easy for your target audience to participate. If viewers find it interesting, they’ll lead the conversation for you.

4. Conduct A/B testing in specific markets.

How much lift are you getting from your mobile video ads? With A/B testing, you can strengthen your campaign’s focus and optimize its impact.

Say you have brick-and-mortar locations in two different cities. Run a mobile video campaign in one and not the other. After a set period of time, compare sales. What lift, if any, did the campaign provide?

Change the parameters to test your campaign’s impact on SEO, brand awareness, and other marketing touchpoints. Iterate, reiterate, and repeat.

5. Leverage the right distribution platforms.

You need a solid distribution strategy to ensure your video ads reach your target audience. Here are the emerging trends that will determine the future of mobile video advertising, broken down by distribution channel:

• Mobile Video Ad Platforms (BrightRoll, YuMe, Vdopia, Smaato, Vungle) - Expect this nascent sector to become more efficient as it grows. There will be a heavy focus on tie-ins to TV ad campaigns. Soon, video ads won’t just be pre-roll; they’ll be seamlessly integrated into apps and mobile websites.

• Social Networks (Facebook, Twitter, Instagram) - Fifty-three percent of Facebook’s Q4 2013 ad revenue came via mobile devices. Seventy-six percent of Twitter users access the service through mobile. Proactively target mobile social media users.

• On-Demand Streaming Media Providers (Netflix, Hulu, Amazon Instant Video) - Only Hulu currently offers its users an ad-supported service, but watch for this to change in the near future.

• Online News Outlets (CNN, BBC, MSNBC) - Consumers of news media are loyal and well-defined by their interests (e.g., finance, sports, and politics). This represents a significant opportunity for advertisers to target high-value segments.

• YouTube - Nothing is going to loosen YouTube’s grip on the way the world consumes video. Keep your eyes on this major player at all times.

Get Ahead of the Curve

In Q4 2012, branded videos received 1.78 billion views. That figure is expected to spike this year. It’s no wonder that, by 2017, advertisers are predicted to spend $2.6 billion on mobile video advertising per year.

Given this growth trajectory, the competition for eyeballs is only going to get fiercer. Now is the time to experiment, iterate, and master the format. Don’t hesitate. Make 2014 your “year of the mobile video ad.”