Mobile video has begun to accumulate scale, and has also turned out to be one of the few types of mobile content — along with games — that monetizes reliably and drives premium ad rates.
That's reflected in the much higher prices that mobile publishers can command for mobile video ads, compared to standard mobile formats like banners. eMarketer estimates mobile video will account for $520 million in ad spending in the U.S. this year, or 13% of the digital video ad market.
In a recent report, BI Intelligence breaks down the mobile video ecosystem, analyzing the behavior and devices behind the growth in consumption, and examining the demographics and behavior of mobile video consumers.
We specifically detail how mobile video monetization is booming, and look at the new video ecosystem that is taking shape, with tablets — rather than television — at the center.
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Take look at this chart from our report:
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Here are some additional key points about tablet video habits:
- Video is one of the main reasons people use tablets: Two video-related activities — playing videos and sharing them — are among the top ten favorite things to do for tablet users. For smartphone users, neither activity cracks the top-10 list.
- Tablet owners are far more likely than the average U.S. consumer: to disconnect their pay TV subscriptions: and use alternative streaming and download services like Hulu, Apple TV, iTunes, Netflix, and Google TV.
- Tablet users tend to have higher conversion rates than those on smartphones. This has already been borne out in the context of search ads and e-commerce, and the touchable surfaces and larger screens suggest that tablet video ads would enjoy the same benefit.
- Among younger viewers in the U.S., millennials aged 14 to 23: tablets are nearly as popular for watching TV shows as Blu-rays or DVDs. Twenty-five percent of respondents in this age group say they watch TV shows on tablets everyday or weekly, compared to 24 percent who do so on DVD or Blu-ray,
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