New Data Shows Mobile Video Continues to Be a Red Hot Ad Format
As the use of video ads among mobile app marketers is skyrocketing, we wanted to take another look at the key trends related to this ad format. In October 2015, a joint report with our partner AppLovin showed video grew 190 percent between Q1-Q3 2015 – the fastest among all ad formats – generating a retention rate that was 34% higher than non-video ads.
How has video evolved since? We (AppLovin and us) took another look at the data from Q4 2016, and here’s what we found:
Video dominates, especially among gaming apps. Data from AppLovin shows that a staggering 93% of mobile ad dollars in Q4 were spent on video. Among non-gaming apps, video attracted 58% of spend, bringing the overall video spend across categories to 77%.
At the end of Q3 15, video ad spend commanded 66% of spend, and since then it has climbed another 17% overall. Breaking down the data into gaming and non-gaming, we see that the former jumped 31% and the latter rose by 26%.
Video ads deliver loyal users. Offering far less room for surprise, a video for an app is like a movie trailer. It can filter out uninterested users and further attract interested ones. As such it comes as no surprise that the retention rate of video ads was 24% higher than non-video ads. When data is split between iOS and Android apps, the retention advantage of video ads versus non-video ads was 29% and 21%, respectively.
Having said that, the retention gap between video and non-video ads has decreased from 34% to 24%. This can be explained by the growing realization among all marketers (not just gaming app marketers who have been relying on video for longer than their non-gaming counterparts) that retention is a massively-important KPI. As such, they have been more active optimizing for retention across all ad formats.
Overall, the study included billions of inputs from AppLovin’s own demand side platform and RTB exchanges, whereas AppsFlyer’s retention data encompassed over 700 million non-organic installs globally across 5,000 apps (minimum of 2K installs per app) and 1.8 billion app opens throughout Q4 2016.
To sum up, the success of the video ad format clearly demonstrates why it continues to dominate the mobile advertising landscape. Among the generally savvier gaming advertisers, who have been early to adopt, it seems the use of video has reached its peak, whereas there’s still room for growth among non-video apps.