Video ads are soaring — but only 5% are on mobile [report]

Online video ads are growing at a rapid rate but almost all of them are appearing on the desktop. Here’s some stats that also include a look at video ads on mobile and connected TV.

New ad industry figures claim the number of online video ads shown in the last quarter of 2012 grew an eye-popping 52 percent compared to the previous three months. This stat shows that TV dollars may be shifting to the web in force; this could also come as good news for publishers who are counting on high-value video ads to prop up their bottom line.

The figure was supplied by Videology, a provider of ad tools to agencies and marketers, the graphic below shows a snapshot of the industry. Highlights include a growing range of sectors that are buying video ads and increased use of behavioral data to target ads.

The other significant part of the report is that the vast majority of video ads ares still served on the desktop:

Videology screenshot

– Online remains the dominant platform for video ads: 92% of impressions went to online, while year-over-year mobile was up from 4% to 5%, and connected TV was up from 1% to 3%. Actual impressions by platform grew YOY, along with the overall market.

– More industries are using more online video ads: In Q4 ’11, 6 industries delivered 91% of video ads, in Q4 ’12 the number dropped to 72% as industries like electronics and restaurants accounted for greater levels.

– Video completion rates for viewers age 18-24 continue to be the strongest, while 65+ unexpectedly is the strongest age group for click-through rates.

Videology said that the mobile’s share of overall video ads  grew one percent in the previous quarter and that the overall growth in video means mobile is expanding rapidly. Unlike Google, Videology continues to consider tablets like the iPad as a mobile, not desktop, device for ad purposes.

The third category — “Connected TV” — refers to pre-roll video ads served on devices like Roku, Apple TV and Xbox. The 3 percent figure is up from 1 percent the quarter before.

These numbers shouldn’t be treated as gospel, of coure, as Videology has a stake in the video ad industry. But the company’s broad connections to marketers, publishers and agencies do give it a good big-picture view.

Going forward, it will be interesting to watch how quickly the above desktop-to-video ratio changes to reflect a world in which half of all internet viewing is expected to take place on mobile devices. At the same time, publishers will be watching closely to see if video ads can hold their high value as more inventory comes on the market.



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