Mobile browsing should reach parity with desktop browsing by the end of next year or early 2017.
That suggestion is one of the key findings from Adobe Digital Index (ADI), based upon the analysis of more than 214billion digital advertising impressions, 201billion online video starts and 100billion website visits (Adobe is CMO.com’s parent company).
ADI also identified a broad, steady trend in the growth of mobile video viewing. This chimes with broader changes in consumers’ media habits.
In terms of media consumption, consumers have added nearly two hours a day in the past five years (source: eMarketer). It is clear that there is a consumer shift towards watching video across multiple media, with mobile viewing accounting for the largest gains.
“Mobile video represents a huge opportunity for brands to augment their plans with content that enhances and enriches the whole storyline,” said John Travis, Vice President of Brand Marketing at Adobe.
Branding With Video
When ADI looked further into which industries leverage video, it was no surprise to see Media & Entertainment and Sports dominating video viewing. This is largely due to the fact that these industries depend on advertising and video as their primary source of revenue.
When we look beyond these two industries the analysis was insightful – and intuitive, given the nature of the medium.
Those sectors where advertisers rely most on building brand awareness and storytelling see higher video viewership than those sectors after a more immediate digital transaction, such as travel and retail.
In fact automotive, which relies heavily on awareness-building and storytelling in its advertising, fared better than many other paid advertising sectors, with a video view-rate twice the advertiser industry average. It was followed by consumer packaged goods and internet & telecom. Retail, travel and finance, more traditionally associated with online sales, bookings and account activity, trailed behind the paid advertiser industry average.
“Now is the time for brands across industries to experiment with formats and different video treatments to see what is most appropriate, and what will engage their audiences best on mobile,” said Travis.
Video Ad Exposure
ADI research found that mobile video is quickly increasing consumer exposure to video advertisements. Since Q1 2014, consumer mobile ad exposure has superseded the desktop and increased nearly 40% over the last five quarters.
The rise in consumer exposure to mobile video advertising coupled with the need for major advertising industries to use video as a storytelling tool are key indicators as to why mobile ad spend is likely to shift away from linear TV and on to the mobile screen. Several key benefits of mobile advertising include the ability for marketers to measure its impact as well as to show different video to different targeted audiences. It is up to marketers to realise these benefits and maximise the return mobile advertising can provide.
Mobile Advertising Spend Poised To Rise
Just as internet advertising once experienced a lag between the number of unique users and advertising spend, a gulf now exists between the growing amount of time consumers spend viewing content on mobile devices and the relatively small investment brands are making in the channel. But it’s just a matter of time until the numbers match.
Research from the IAB (Interactive Advertising Bureau) in the US adds some perspective on how deep the under-investment in mobile is. According to these figures, desktops and laptops currently account for nearly a quarter of time spent consuming media and receive an equitable share of nearly a quarter of advertising spend. Print maintains a healthy percentage of the ad budget despite consumers moving to other channels to engage with content. Mobile, on the other hand, has a similar level of media consumption to TV and Internet, yet receives less than 10% of ad spend.
However, findings from Adobe Digital Index indicate that this spread is already beginning to narrow, with global mobile advertising spend increasing 50% over the past year, and in Europe it is rising higher at 54%.
Looking at the imbalance between time spent and ad spend within the mobile video and print channels, it would seem logical to expect a shift in advertising spend away from print and toward mobile video. However, given the success of video ads on mobile and the increase in consumption of video content on mobile, ADI believes that budget for mobile video ads will likely come from television advertising.
Experiment With Mobile Video Now
Mobile video is still relatively underdeveloped when compared to other content channels. According to Travis, “Now is a perfect time to experiment to understand how best to engage with consumers through video, and how to reach them where they are spending an increasing amount of time, on their mobile devices.”
About Adobe Digital Insights
Adobe Digital Insights publishes research on digital marketing and other topics of interest to senior marketing and e-commerce executives across industries. Research is based on the analysis of select, anonymous, and aggregated data from more than 5,000 companies worldwide that use the Adobe Digital Marketing Cloud to obtain real-time data and analysis of activity on websites, social media, and advertising.
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