In the past year, the share of impressions from video ad formats has increased over 5x, from 2.5% of all impressions in Q1 2014 to now just over 12.8% of impressions. Meanwhile, publisher revenue has grown to become over 55% of revenue delivered to publishers.
After conquering native display ad monetization, you can expect Facebook and Twitter will perfect video advertising next, leaving other mobile players scrambling to prioritize the correct data to execute effectively. Mobile video ads are positioned well for the introduction of more advanced data either from social or search, as there is little data being leveraged on video exchanges, resulting in an adverse environment for brands who are discouraged by what little information is available on audiences.
Combining mobile video ads with device ID and lat/long data plus additional audience data will allow for the targeting needed in order to meet clear KPIs. In addition, automated marketplaces will help to assist as more premium inventory is introduced for trade. Overall, publishers find real-time bidding unfavorable for video as it creates a race to the bottom, resulting in low prices. Therefore, it will still take some time before premium video inventory enters non-direct channels. Programmatic direct and private marketplaces aim to reduce sales channel conflicts and may assist in the growth of mobile video in particular.
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